The blockchain is one of the terms most recently used in the world of technology, but know what it is?
As you may have already imagined, its literal translation is blockchain and it is a shared database that works like a book for the registry of purchase-sale operations or any other type of transaction.
Its origin was simultaneous to bitcoin, in fact, it is the information encoding system that uses this virtual currency, and in a short time, the tremendous potential that it had even beyond finance was seen.
Thanks to its technical solidity, this technology allows for greater processing in the back-end of a company. It also enables multiple information sharing, including across institutional and system boundaries, without risking data integrity, automation of capital flows, and the ability to audit at any level.
An immediate application is the management of public information records on issues such as land registration and notarial obligations. With the blockchain, anyone can access the history of a property for example and it is impossible for anyone to modify or falsify this information due to the encryption made.
We also have to keep in mind that it will be essential for the Internet of Things, since in this way electronic devices will be able to communicate with each other transparently and securely.
Currently one of the main applications that is being given to the blockchain is that of creating company backups, thus ensuring that the information is secure in several blocks.
Benefits Of Blockchain For Companies
Among the greatest benefits that this technology can have at the business level we highlight:
- Higher Speed: By removing a central authority or intermediaries, it makes the information available to all network participants in the same place. Being able to simplify this process of data transmission gives us greater speed in the management of any information that we consult, allowing companies to act faster and more agile.
- Transparency: It is more transparent than any other system since it offers us a more precise view of the origin of the transactions and anyone can consult the transactions in the registry and verify them. This achieves total transparency of the system, having everything audited in the logbook.
- Lower Cost: Blockchain is a cheap technology, not only because it reduces the overload process by eliminating intermediaries, but also because it offers us the possibility of streamlining our processes and communications. Due to a more direct relationship between internal systems and devices, we can automate the execution of processes.
- Greater security and confidence: A trusted environment is built in which the exchange of data is carried out through encrypted and encrypted operations, something that allows us to preserve data exchanges and guarantee the security of all those involved. Additionally, the decentralization of information guarantees its total immutability
- Better Monitoring: Each block in the chain stores the information and the blocks are linked to each other. In this way, organizations can more easily track information and process history at any time. We, therefore, have a traceability mechanism that can help companies to monitor each transaction type uniquely.