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Advantages of block chain technology in businesses

Advantages of block chain technology in businesses

The block chain is one of the most used terms lately in the world of technology, but do you know what it consists of? As you may have already imagined, its literal translation is block chain and it is a shared database that works as a book for the record of purchase and sale operations or any other type of transaction. Its origin was simultaneous to bit coin, in fact, it is the information coding system that this virtual currency uses, and in a short time, the tremendous potential that it had even beyond finances was seen.

With this technology, transactions and data can be recorded in such a way that they cannot undergo any modification, which provides greater reliability and information security for process traceability, supply, smart contracts, and data storage applications, among others. "What you have to do first is an experiment, to see if it makes sense to use block chain in companies, in what areas and applications, and be prepared for when the big wave arrives," says Edwin Iraheta, leader of digital innovation at GBM. Specialists agree that many of the components of the technology already existed, but are now being combined into a shared network to facilitate operational and financial processes, as well as new business models and applications.

Currently, a new generation of startups chooses to create block chain networks for disruptive business models in various industries while well-known companies from different sectors help them solve market challenges, operating costs, and the viability of their Models.

Why block chain technology is so popular

To understand its potential, let's take an example. Let's imagine that you need to transfer money to a family member or friend from your bank account. You would have to log in to a virtual platform and transfer the required sum through your account number. Finally, when the transaction is successful, the bank will update the data record. 

This is a pretty simple process, right? However, there is a risk that most of us are not aware about. These types of transactions can be adulterated quickly. For this reason, many people who know about this risk feel understandable suspicion with banks or third party app. And this is where the block chain technology emerged

The emerging block chain technology offers many benefits to the businesses in an increasingly digital world. Let’s dive deep into it!

Benefits of block chain in businesses

Fully automated legal agreements 

Most companies are studying a way to use block chain not only in production stages but also in businesses. When it comes to contracts, the block chain can automate the process of legal agreements and documentation, without the involvement of human beings, significantly reducing the bureaucracy that delays the process. 

Business contracts are usually bilateral and require documentation and signatures from both parties. This can result in a delay, which means hindering a company's productivity and causing managers to miss deadlines due to a missing subscription. For example, the block chain will help eliminate the delay in transactions that require signature and approval.

Generation of smart contracts 

Contractual transactions that take a long time can slow down the growth of a business, especially businesses that handle a flood of communications regularly. With smart contracts, agreements can be automatically validated, signed, and enforced through a blockchain construction. This eliminates the need for mediators and therefore saves the company time and money. 

Today, block chain solutions like CREDITS offer stand-alone smart contracts paired with its internal crypto currency. By consolidating everything into a single platform, businesses can integrate services without disclosing an excessive amount of information to third parties.

The contents and information cannot be changed

Once any registration or transfer request is entered into the block chain system, it is impossible to change the content of the request. The information is traceable, and because it is public within an encrypted system, it becomes inviolable. If any user tries to change any data, the other connected networks find out and block it tentatively automatically.

Direct transactions 

The block chain enables direct transactions between the participants without the need for a third party to intervene. These middlemen, such as banks or notaries are no longer necessary. This technology is much attractive, especially in regions where the infrastructure is not yet well developed or where there is a lot of corruption. The participants can rely on tamper-proof transactions. Avoiding these middlemen and doing business without a detour also reduces the costs that this intermediary often charges. 

Besides, the direct transaction is generally much faster. A maximum of 10 minutes is required in the Bit coin block chain; via third-party systems, it can take a few days.

Wrapping Up

Although there are still challenges in terms of adaptability, legality, intellectual property, management, and privacy, this technology will undoubtedly be one of the fastest-growing and evolving digital technologies in the immediate future. Undoubtedly, it will be among the main trends in digital transformation in the coming years and will play a key role in many sectors.

The block chain is one of the most used terms lately in the world of technology, but do you know what it consists of? As you may have already imagined, its literal translation is block chain and it is a shared database that works as a book for the record of purchase and sale operations or any other type of transaction. Its origin was simultaneous to bit coin, in fact, it is the information coding system that this virtual currency uses, and in a short time, the tremendous potential that it had even beyond finances was seen.

With this technology, transactions and data can be recorded in such a way that they cannot undergo any modification, which provides greater reliability and information security for process traceability, supply, smart contracts, and data storage applications, among others. "What you have to do first is an experiment, to see if it makes sense to use block chain in companies, in what areas and applications, and be prepared for when the big wave arrives," says Edwin Iraheta, leader of digital innovation at GBM. Specialists agree that many of the components of the technology already existed, but are now being combined into a shared network to facilitate operational and financial processes, as well as new business models and applications.

Currently, a new generation of startups chooses to create block chain networks for disruptive business models in various industries while well-known companies from different sectors help them solve market challenges, operating costs, and the viability of their Models.

Why block chain technology is so popular

To understand its potential, let's take an example. Let's imagine that you need to transfer money to a family member or friend from your bank account. You would have to log in to a virtual platform and transfer the required sum through your account number. Finally, when the transaction is successful, the bank will update the data record. 

This is a pretty simple process, right? However, there is a risk that most of us are not aware about. These types of transactions can be adulterated quickly. For this reason, many people who know about this risk feel understandable suspicion with banks or third party app. And this is where the block chain technology emerged

The emerging block chain technology offers many benefits to the businesses in an increasingly digital world. Let’s dive deep into it!

Benefits of block chain in businesses

Fully automated legal agreements 

Most companies are studying a way to use block chain not only in production stages but also in businesses. When it comes to contracts, the block chain can automate the process of legal agreements and documentation, without the involvement of human beings, significantly reducing the bureaucracy that delays the process. 

Business contracts are usually bilateral and require documentation and signatures from both parties. This can result in a delay, which means hindering a company's productivity and causing managers to miss deadlines due to a missing subscription. For example, the block chain will help eliminate the delay in transactions that require signature and approval.

Generation of smart contracts 

Contractual transactions that take a long time can slow down the growth of a business, especially businesses that handle a flood of communications regularly. With smart contracts, agreements can be automatically validated, signed, and enforced through a blockchain construction. This eliminates the need for mediators and therefore saves the company time and money. 

Today, block chain solutions like CREDITS offer stand-alone smart contracts paired with its internal crypto currency. By consolidating everything into a single platform, businesses can integrate services without disclosing an excessive amount of information to third parties.

The contents and information cannot be changed

Once any registration or transfer request is entered into the block chain system, it is impossible to change the content of the request. The information is traceable, and because it is public within an encrypted system, it becomes inviolable. If any user tries to change any data, the other connected networks find out and block it tentatively automatically.

Direct transactions 

The block chain enables direct transactions between the participants without the need for a third party to intervene. These middlemen, such as banks or notaries are no longer necessary. This technology is much attractive, especially in regions where the infrastructure is not yet well developed or where there is a lot of corruption. The participants can rely on tamper-proof transactions. Avoiding these middlemen and doing business without a detour also reduces the costs that this intermediary often charges. 

Besides, the direct transaction is generally much faster. A maximum of 10 minutes is required in the Bit coin block chain; via third-party systems, it can take a few days.

Wrapping Up

Although there are still challenges in terms of adaptability, legality, intellectual property, management, and privacy, this technology will undoubtedly be one of the fastest-growing and evolving digital technologies in the immediate future. Undoubtedly, it will be among the main trends in digital transformation in the coming years and will play a key role in many sectors.




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