The whole procedure can be done and recorded in real-time which makes the change very transparent. It is a revolutionary technology that has lots of advantages. In this article, we have mentioned some of those advantages below.
Advantages of Blockchain Technology 1. Helps in Providing Greater Transparency
Blockchain technology offers a transaction ledger for public addresses that are open to viewing. It also helps to create integration among businesses and financial systems to offer an unprecedented layer of accountability. This facility of transparency can build trust and help in the growth of the company.
2. The Benefit of Decentralization
This is one of the key advantages of blockchain technology. The advantage of decentralisation is that; it doesn’t offer control to the central authority to advance their agenda and control the network. It also offers the benefit of security and has become an excellent system of distribution for the organization.
3. Enhance Efficiency
Blockchain technology has a decentralized nature that helps it, to remove the need for middlemen in certain fields like payments and real estate. It also offers a faster transaction facility compared to the traditional financial services by offering P2P Cross border transfers with a digital currency.
The process of property management has become more efficient with the help of its unified system of ownership records, and smart contracts that would help in creating and automating tenant-landlord agreements.
4. Offers Peer to Peer Network (P2P)
This technology has become an excellent way to exchange information. Its the network becomes stronger with an increase in the number of participants. It is an important fact that the P2P network is the most critical part of blockchain technology.
In this type of network, a user provides the network’s foundation simultaneously. Each and every one of the peers in the network is known as a node and everyone is considered equal.
This peer network offers resources like bandwidth, processing, disk storage, and speed without coordination of any central authority on any server or host.
5. Offers Excellent Security
Blockchain technology is a good technology that also offers excellent security. The transactions made through blockchain technology are encrypted and linked with the previous transaction. Blockchain technology got its name from the network of computers that are integrated to make a block and this block is added to a ledger which makes a chain.
It is a complicated string of numbers and is impossible to alter once formed. The blockchain technology is incorruptible and immutable which makes it very safe from falsified information and hacks.
6. Offers the Advantage of Traceability
By using blockchain technology the person can enjoy the advantage of traceability. In which each time when an exchange of goods and products is done it is recorded on a blockchain and then an audit trail is available to trace from where these goods have come from.
The feature of traceability also offers improvement in security and helps to prevent fraud in the exchange related business. This blockchain technology also helps in checking the authenticity of the traded assets. Some industries like the pharma sector use this technology to track the supply chain from manufacturer to distributor. It is also used in the art industry.
7. The Benefit of Open Source
This is another unique benefit of blockchain technology since it is based on open-source software. This feature of open source helps in reducing the entry barriers which leads to an efficient developer base with enhanced transparency.
This open-source software helps in offering transparency in the development and publishing for the community’s welfare, instead of being an individual or single organization property which is only meant for making a profit. There is no single company or individual that owns, sells or develops the software that neglects any type of chokepoints in the open-source software development process.