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5 reasons why we need blockchain

by Magdalena Owsiany
December 18. 2018

Do you feel like the blockchain is for some cryptocurrency geeks? Or maybe you want to implement it smartly (I mean: it is supposed to do something, not just yell "Innovation!!")? No matter your motives, you should know the answer to one significant question: Why is blockchain an important technology?

1. Transparency

In public blockchains, inserted data is visible to anyone. You can check the records at any time, at every stage. In the era of consumers that are more conscious, both transparent and secure blockchains are the answer - it is a pioneering solution. As the data on the blockchain is immutable, this technology is a sure source of information about transactions and other records stored in the distributed ledger.

The crisis from 2008 caused a demand for such visibility. Big financial institutions were using their customers' funds not always in an honest way and, what's more important, without anyone's awareness.

Blockchain gives us the possibility to step into the new era of business transparency.

2. Sure ledgers

In business processes, sometimes it's necessary to involve multiple parties. Every single of them has their database, what may cause numerous issues. Different versions of data equal different truths about the same process, the danger of human error, parties can modify their data and must rely on intermediates, what increases costs. Already having a headache?

Let's change the scenario. Let's suppose that blockchain provides us one shared ledger. Everyone has its copy - parties refer to the single immutable source of truth. Cryptographic techniques secure the associated data. Everyone needs to give consensus before any piece of data joins the blockchain. This solution allows for detecting a human error at the early stage.

Sounds better, right?

3. Increased anonymity

You want to insert data into blockchain. How do you confirm adding a new block? Do you use your identity? No!

The block can join the blockchain after it gets a digital sign - a hash. The cryptographic function generates it - this process includes none of your personal data.

Identity and credit card number stealth, tracking, no privacy when it comes to the profile activity - these phenomena are non-existing in the blockchain universe.

4. Blockchain for everyone

In public blockchains, anyone can contribute to its development. The more participants distributed ledger has, the more secure it becomes. As the blockchain validation bases on consensus - the majority of users must confirm that everything is fine with a new block. Also, participants can take part in writing, reviewing or auditing the blockchain.

We need systems validated by people who actually care about their quality.

5. Many application possibilities

You say blockchain can be used in banking. Cool, that's correct! Let us only add a few areas: supply chain, marketing, accounting, energy resources, voting, healthcare, supermarkets real estate, private data protection, crowdfunding, insurances, IoT, HR, motorization, contracts, e-government, data storage, post-trade, asset registration, carbon credit management, refugee support, drugs control...  Shall we go on?

 

Do you want to learn more about the blockchain? Check out our latest articles!

How can you apply blockchain to your business?

Understand and use the blockchain

 

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