The reason why blockchain technologies has not taken over the business world yet could possibly be linked to the fact that it seen difficult to be understood by non-technical people.
ABI Research Director, Michela Menting stated:
“Due to the many different applications that can be created, the deployment can become complex. As a decentralized peer-to-peer system, there are many moving parts, and as such, it can appear complicated to run.”
According to ABI, blockchain can be likened to a public ledger that uses digital signatures and where cryptography keep an unchangeable record of transactions.
Michela further explained that
“The advantage of blockchain is that it can provide an immutable ledger, offering both transparency and integrity, cemented securely using cryptography. As such, it can be useful for anti-fraud purposes, but also for continuity in business operations.”
Cryptocurrency is not too familiar to some, a major reason why many believe that blockchain is the same as Cryptocurrency. However, Blockchain technology is basically what made Cryptocurrency possible.
The great thing about blockchain is that because it is decentralized, it enables direct business transactions between people, without the need for a middle man. Though, this does not call for business jumping on the blockchain technology bandwagon without carrying out adequate research.
“Blockchain technologies is an infrastructure that can be leveraged to certain advantages, that can revolutionize certain industries and business models. But those will not necessarily apply to all cases, it is up to business leaders to study the technology and see if it is a right fit or not.”
Blockchain technologies allows safe transactions due to a number of reasons, which include the immutability factor, a high level of transparency and the fact that it is self-governing, which means that no single entity or corporation is in charge. This means that changing a record in any way will be seen by everyone – a great way eliminate fraud. Though the Blockchain technologies is still not totally immune to security risks, but it’s very close.
Blockchain technologies offers a great way to process digital payments. It is presently being used by businesses for smart contracts implementations, which provides an autonomous method of communication, making payments and recording data. Using this in the “real world” would positively impact anything from digital identities to supply chain management, not to be mention more secure banking solutions.
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