Blockchain Technology: An introduction
The Blockchain is an encrypted, distributed database that records data, or in other words it is a digital ledger of any transactions, contracts – that needs to be independently recorded. One of the key features of Blockchain is that this digital ledger is accessible across several hundreds and thousands of computer and is not bound to be kept in a single place. Blockchain chain has already started disrupting the financial services sector, and it is this technology which underpins the digital currency- bitcoin transaction.
With Blockchain technology in financial sector, the participants can interact directly and can make transactions across the internet without the interference of a third party. Such transactions through Blockchain will not share any personal information regarding the participants and it creates a transaction record by encrypting the identifying information. The most exciting feature of Blockchain is that it greatly reduces the possibilities of a data breach. In contrast with the traditional processes, in Blockchain there are multiple shared copies of the same data base which makes it challenging to wage a data breach attack or cyber attack. With all the fraud resistant features, the block chain technology holds the potential to revolutionize various business sectors and make processes smarter, secure, transparent, and more efficient compared to the traditional business processes.
Benefits of Blockchain Technology
• Increased time effectiveness due to the real-time transactions
• Direct Transactions eliminate the overheads and intermediary costs
• Reduced risks related to cybercrimes, frauds and tampering
• More transparent processes with a proper record creation and tracking
• Highly secure due to cryptographic and decentralized Blockchain protocols