In the 4.0 technology era, the development of smart applications and technologies aims to develop businesses. In particular, Blockchain is considered the “key” to build the future information technology platform. With its own characteristics, Blockchain will open up a potential application trend for many fields. So, what is the reason for enterprises to focus on the blockchain development future? Join us to find out in this article!
What is Blockchain?
Blockchain is a technology that stores and transmits information using interconnected blocks. Specifically, blockchain is a network of many blocks. Each block stores initialization time information and is associated with previous blocks.
In particular, the data information on the blocks cannot be changed, it can only be updated and added. Essentially, a Blockchain is a chain of computers that all must approve a transaction before it can be executed. Each block that is born or edited must have the confirmation of the computers participating in the system.
Blockchain is designed to resist data change. Information in the blockchain cannot be changed and can only be added when there is a consensus of all nodes in the system. Even if part of the blockchain system collapses. Other computers and nodes will continue to operate to protect information.
Examples of public blockchains and distributed blockchain technologies include Bitcoin blockchain, Ethereum blockchain, NEO blockchain, and more.
Reasons why businesses need to pay attention to the blockchain development future
Blockchain brings transparency
Needless to say, the Blockchain platform offers many steps forward in transparency over traditional storage. Because once data is entered into the Blockchain, transactions cannot be changed or deleted.
Blockchain-based technology provides clarity to everyone in the network. Thanks to the transactions being announced to every computer connected in the grid. Most computers linked to the Blockchain must accept transactions or changes on the Blockchain. Thus, avoiding concealment or manipulation of transactions.
Cases where a person in a business steals money or hides company losses by falsifying data entered into the ledger is rare among the blockchain-based distributed system.
Better security features
Blockchain technology has good security features. Because there won’t be any loopholes that can be used to crash the system. Even for the most potentially risky financial systems.
For example, Bitcoin software has never been hacked. Because Bitcoin’s Blockchain system is secured by many different computers called nodes. They will ensure the confirmation of transactions in the system.
Blockchain creates a decentralized platform
Decentralized technology provides businesses with the ability to store assets (such as contracts, documents, …) into the system via the Internet. The owner will have direct control over the system and transfer his assets to any other person through a private key (virtual key).
Blockchain technology has been proving its ability to decentralize websites. It possesses the power to bring about enormous change in all industries.
Eliminate Intermediate Units
One advantage of Blockchain technology over existing systems is the ability to eliminate intermediaries. It does this by allowing people to transact directly with each other rather than through a third party. This helps businesses that do not have to depend on intermediaries. They will also have more secure choices and share information with third parties.
Blockchain is especially useful in situations where trust in intermediaries does not exist. Or direct trading between people is too difficult or risky. At the same time minimize the risk of trading without the need for a third party to act as a transaction intermediary.
Increase system performance
This is the first and most important feature of this software. The best thing about Blockchain is that it can increase the operating capacity of the entire system. Thanks to the fact that there will be many computers operating at the same time in the same network. It helps to solve work more efficiently and optimally than just concentrating control on a specific computer.
Transactions when businesses make via blockchain are also processed at high speed. By eliminating intermediaries and establishing transactions on a shared distributed ledger. Blockchain-based ledgers can process transactions almost instantly.
Ledger set up on the Blockchain platform allows eliminating intermediaries and confirmation layers in transactions. Transactions on the blockchain, even though many separate ledgers are needed, can be established on several common ones. Thereby reducing the cost of verifying, validating and verifying a transaction across different organizations.
Blockchain is an application technology that brings many benefits to businesses in the future. It helps businesses grow fast while saving time and costs. The blockchain development future is important to businesses. It brings a new future for business development. Hopefully, through our sharing, your business will choose the right direction for the future.