Blockchain is a digitized ledger or database shared across the nodes of a peer-to-peer computer network. This database records and electronically stores information accurately and securely and is used by organizations to monitor transactions and track tangible as well as intangible assets within their network. Information is stored as encrypted blocks of digital data, linked together cryptographically and time-stamped.
Since the information is recorded and stored in a decentralized manner across several computers and locations, it is impossible to retroactively alter, forge, delete, or otherwise meddle with the data. This security is how blockchain provides an immutable and chronologically accurate single source of truth for an organization’s asset and transaction data and is the primary advantage of blockchain technology.
Blockchain technology was created in 2008 as a distribution ledger to maintain a record of Bitcoin transactions. Today, blockchain technology is being used for record-keeping technology and systems. Below are some of the proposed modern-day applications for blockchain technology.
Process Payments and Money Transfers
Using blockchain to process and authenticate money transfers can streamline online transactions and even eliminate bank charges.
Monitor Supply Chains
Supply chain inadequacies and bottlenecks can be rapidly identified and rectified using blockchain. It would also allow businesses to accurately track and monitor goods in real-time as they move from manufacturers to retailers.
Enable Secure Data Sharing
Sensitive business data can be securely stored and shared using blockchain.
Protect Intellectual Property Rights and Royalties
Artists, musicians, software developers, and other creators can use a blockchain database to keep tabs on their intellectual properties and royalty payments in real-time.
Manage Internet of Things networks
Blockchain technology can regulate IoT networks by identifying, monitoring, and determining the trustworthiness of devices on the network.
Manage Healthcare Data
Blockchain is a great way to ensure security and regulatory compliance in managing electronic medical records and data on clinical trials.
Modernize Public Recordkeeping
Blockchain for record-keeping and management ensures authenticity, security, and cost-efficiency. The cryptographic hash acts as a data reference check against a record, its workflow, and signatures. If there is any change, the hash no longer works, promising record-keeping integrity. Thus, linking blockchain certification to public records increases trust and transparency in government processes.
- Infosys Public Services Modernize Public Recordkeeping for County of Riverside in California with Blockchain Technology
- Rhode Island Wants To Make It Easier To Do Business Using Blockchain Technology
Benefits Of Blockchain Technology
Organizations incorporating blockchain as a database for recording and storing transactions can expect several benefits. It can speed up transaction processing and verification, save costs, and protect the organization’s sensitive information from malicious data tampering that could lead to fraud or other cyber-crimes.