You've probably already heard of blockchain, the technology on which Bitcoin is based. But blockchain is more than just cryptocurrency. Most people are still unaware of its full potential and its impact on various industries. This is because blockchain has the potential to simplify many areas of our lives and make them more secure.

What is blockchain?

But what exactly is blockchain? It is a continuously expandable list of data records, a chain consisting of blocks. These data records are linked together using cryptographic processes and each contain a scatter value of the previous block, a timestamp and transaction data. This information is important for understanding blockchain.

But what makes blockchain so important? This is due to the fact that every transaction builds on previous transactions. This makes it impossible to manipulate or erase the existence or content of previous transactions without also destroying all subsequent transactions.

Today, innovators in various fields are recognizing the benefits of the technology behind Bitcoin. From medicine to finance, many industries are looking for ways to integrate blockchain into their infrastructure.

Due to its decentralized and trustworthy nature, blockchain technology can lead to new opportunities and benefit businesses through greater transparency, increased security and easier traceability. These opportunities are opening up for you too!

But what are the specific benefits of blockchain? This is exactly what we have researched in this blog article.

Greater transparency

Blockchain is characterized above all by the fact that the transaction ledger can be viewed by public addresses. In financial systems and businesses, this leads to unprecedented accountability, requiring every part of the business to act with integrity for the growth of the company, its employees and its customers.

Increased efficiency

Due to its decentralized nature, blockchain eliminates the need for intermediaries in many processes for areas such as payments and real estate. Compared to traditional financial services, blockchain enables faster transactions by enabling cross-border transfers using a digital currency. Real estate management processes become more efficient through a unified system of property records and smart contracts that automate tenant-landlord agreements.

Better security thanks to blockchain

Blockchain is far more secure than other recording systems, as each new transaction is encrypted and linked to the previous transaction. Blockchain is formed by a network of computers that come together to confirm a ‘block’. This block is then added to a ledger that forms a "chain".

Blockchain consists of a complicated series of mathematical numbers and cannot be changed once it has been created. This immutable and incorruptible nature of blockchain makes it safe from falsified information and hackers. The decentralized nature also gives it the unique property of being “trustless” - meaning that parties do not need trust to act securely. 

Improved traceability

With the blockchain ledger, every time an exchange of goods is recorded on a blockchain, an audit trail is available to trace where the goods originated. This can not only help improve security and prevent fraud in exchange-related businesses, but also verify the authenticity of the assets being traded. In industries such as medicine, it can be used to trace the supply chain from manufacturer to retailer, or in the art industry to provide irrefutable proof of ownership. 

Blockchain as a service

However, the problem that many companies face is that blockchain is not easy to integrate and there is no technical team internally that is familiar with this area. With a Blockchain as a Service service, customers can easily integrate blockchain technology into their business without disrupting their daily processes.

With starter kits such as Blockchain-in-a-Box, modern companies can create a proof-of-concept to confirm the viability and feasibility of blockchain for their business before embarking on a full-scale development. In Silicon Valley, for example, experience has shown that investors are more likely to fund a project that they can actually see - a purely conceptual idea no longer has any appeal. With the Blockchain-in-a-Box starter kit, companies can create a fully tangible platform to differentiate themselves from their market and gain confidence in their projects.

Conclusion

Blockchain has the potential for many use cases that can be applied to a wide range of industries. This technology is now much more than just Bitcoin, with corporations and SMEs relying on it to simplify their processes and make them more transparent. In a few years, blockchain will have taken a place in our lives that we cannot yet imagine.

As you can see, blockchain is on the rise worldwide. If you are wondering which use case could be promising in your company or you would like to find out about the costs of such a project: Please feel free to contact us. newdirection GmbH is at your disposal with all its software expertise. We have already helped countless companies to become even more successful with the latest technologies. Please contact us for further information without obligation.