Blockchain is a resourceful and farsighted invention of the human. The technology is viewed to bring meaningful and significant changes in the system of finance. Its decentralized, independent and transparency features make it more reliable and easily accessible for the users. Blockchain stores all the information and the records between the parties as a distributed ledger that can be easily accessed by them at any time and any place they want.
Many cryptocurrencies or digital currencies are already based on Blockchain technology. Apart from digital currencies, it is also in use by some industries such as business, government, and healthcare, etc. It is helping the industries in improving their techniques of working, functioning and hence in performing better. It makes the organizations and users achieve accessibility, transparency, security, better functioning, and many such things at a very minimal cost.
Let us see how Blockchain will transform the industries and organizations for their enhanced performance by changing their functionalities.
Contractual transactions are time-consuming as well as a bit risky. In addition to that, it also lacks transparency, because contracts require the third party undertaking. It requires a third party to come in between or become a mediator between the two parties when they are signing a contract.
Smart contracts are digital or virtual contracts. It does not need a third party and can perform without them. Smart contracts control the transfer of digital currencies or assets between parties but with certain conditions. A smart contract does not only include the rules, regulations, and penalties related to an agreement just the same way a traditional contract does, but it can also automatically execute those commitments. It is transparent and also accessible to both parties. None of the party can tamper it and even if they try to then the other party will automatically get informed.
Some financial institutions that provide cross-border exchanges, charge high transaction costs. It also involves middle-men or mediator to monitor and keep a check on the operations.
With blockchain, you do not need a third person to monitor and it will not even matter that you trust the other party because there is no room for any kind of fraud with this technology. The removal of middlemen leads to a reduction in costs.
Blockchain assures quality providing the facilities of safety and security. It is very much essential for the organizations and industries to work efficiently, without any error or mistake, to maintain and upgrade their functioning. If any fault or error is found,
Blockchain will be able to trace it from the starting and after researching, necessary steps could be taken to fix it.
Blockchain is virtual, where all the transactions are recorded automatically. This feature of Blockchain eliminates the chances of any human error. Records automatically get verified and this is how the chances of any mistakes lessen or even gets eradicated. This way it makes the transactions and accounting more accurate and also highly traceable.
Despite the fact that Blockchain was initially explored for digital currencies or digital assets, it is in use and can be used in other different sectors and industries as well.