Blockchain technology has made a positive relationship between two unknown parties without any mediator or intrusion from the third party. Blockchain uses the decentralized system to keep records. In the databases backed by Blockchain Technology, entries can only be done by passing an authenticated encryption. Blockchain also ensures full transparency in the organization. The data is protected by powerful encryption which gives security in the system. Outside hacks or data tampering is not possible in Blockchain Technology and gives complete peace of mind. Thus, we can say that in a digital economy, Blockchain has the potential to bring positive impact to the economy with the current industry trend. Read also: Why blockchain for business
Impact Of Blockchain Technology
Moving into the year 2018, it is rational to assume that Blockchain will be exposed to its full potential which will change the world of ‘Digital Economy’. There would be other potentials of Blockchain in other industries as well.
Enterprises would benefit from the level of security and transparency provided by Blockchain.
- Reduction in Key Costs: Blockchain empowering cryptocurrency can be linked with the reduction of two major key costs of the digital finance sector. First of all, Blockchain will reduce the verification and authentication cost of transactions by many folds. On the second row, Blockchain can reduce the cost of networking. For a market to function, the key attribute of every organization is to verify and record transactions. The process is lengthy and labour intensive. This involves the role of a third party acting as a mediator for verifying the transactions. Blockchain can reduce the cost by minimizing work-force and the role of mediator. Network cost can be reduced by decentralized ledger that is used for recording transactions. These two features of Blockchain are the reasons – why Blockchain is the future of the digital economy.
- Global Transaction System: Blockchains most significant achievement till date is Cryptocurrency (Bitcoin). As of today, it may not be as efficient as existing transact and exchange value system, but it has been successful in solving the problem it is designed for, i.e., development of cheaper global transact and exchange value structure without the need of intermediaries for verifying the transactions.
Read also: Blockchain – A New Internet Architecture
- Blockchain Accounting & Bookkeeping: Maintaining accounts and bookkeeping is the biggest and most important thing in the financial market. Blockchain can provide the two most crucial features of accounting, i.e., transparency and immutability. The records stored in the decentralized ledger are visible to everyone, there is no central body controlling the data. This way transparency is maintained in the system. Blockchain also provides the benefit of immutability by preventing data from tapering or altering. Blockchain records are secure by powerful encryption; this makes the data free from any kind of hacks from unauthorized access. The blockchain is the future of digital economy and very soon will be adopted in accounting.
- Trustworthy Platform: With features like immutability, decentralization and mediator free system, Blockchain is to gain trust in the finance sector. This technology has put artificial intelligence (AI) to work. This way the records are error-free and are not Human Bias.
The blockchain is the future of digital economy. It has already started revolutionizing the Digital Economy. Organizations and large financial firms have already begun adopting Blockchain in their businesses to increase efficiency and effectiveness in their work. SAPL as a blockchain development company offers refined Blockchain Development services across the globe as per the client’s needs.