Why Is Blockchain So Revolutionary?
Oct 21, 2021
Blockchain is the most promising technology of the 21st century. Although the tech is still relatively new, it has disrupted many industries, and it seems that it's only just getting started.
What is Blockchain Tech?
In simple terms, a blockchain is a type of computer database that is public and decentralised. A blockchain stores information in data structures called “blocks”, with each block identified by a unique cryptographic “hash” and timestamp. Read our previous blog post to discover exactly what blockchain tech is.
What Are The Benefits of Blockchain Tech?
Blockchain technology offers a wide variety of benefits which will resonate with many different industries. Some of the key benefits include:
The blockchain is append-only. Once a transaction is recorded on the blockchain, the data cannot be altered or deleted. This adds an unprecedented layer of protection against fraud and makes blockchain a great technology for storing financial records.
Data recorded on a blockchain is accessible for everyone to view. Although, it is worth noting that there are some private blockchains that implement the same technology, and are actually opaque.
With blockchain tech, there is no need to rely on intermediaries, like banks or payment providers, because the distributed network of nodes verify transactions through ‘mining’. Blockchain is often regarded as a trustless system. By cutting out the middlemen, blockchain tech drastically reduces overall costs, including transaction fees.
Which Industries is Blockchain Tech Disrupting?
There are several industries that are already using blockchain technology and have gained benefits in transparency and security. Here are some of the most prominent industries that the tech has been disrupting:
Traditionally, cross-border payments are extremely costly and time consuming. Blockchain is disrupting the banking system by providing a peer-to-peer payment system which is both highly efficient and cost effective. By utilising blockchain tech, people can send money across the globe in a matter of seconds at a fraction of the cost of a traditional bank payment.
Supply Chain Management
Before the introduction of blockchain tech, the supply chain management industry was facing a number of challenges largely due to the lack of transparency. By utilising blockchain tech, a business owner can track their products across the entire supply chain. They will be able to view the data record (history, timestamp, date, etc.) at every step of the way, including who handled it and where it has been until it reaches its destination.
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