How Blockchain Development Is Making Data More Secure and Benefiting Different Industries?
Wednesday October 31, 2018,
5 min Read
After the financial cataclysm of 2008, Blockchain came to provide legitimacy to its Bitcoin master. Today, Blockchain technology is offering many business benefits not foreseen during its conception.
Due to its growing popularity, blockchain development is highly adopted by various software development companies in 2018. In fact, there is no doubt blockchain development technology can provide potential advantages to the business world.
According to Transparency market research, global blockchain development market is projected to be worth $20 billion by the end of 2024.
As per Gartner stats, Blockchain development has a lot of potentials to reduce costs, especially for financial domain due to which blockchain’s business value-add is going to grow to $176 billion by 2025.
In the field of data security, it could be transformative, but it is not a panacea at all. If you are considering adopting blockchain development, first understand it fully and find out how it can help your company. For this, you need to have a clear strategy and solid reasons in order to adopt a new technology, no matter how much bustle it is generating these days.
In this blog, we will discuss how blockchain technology is making data more secure.
Check out the major reasons below:
1) Auditable transactions
In blockchain development, each transaction is sequentially and indefinitely recorded that provides an indelible audit trail for the life of an asset, even between the parties. This is actually very important if the source data is essential to verify the authenticity of the assets. For instance, there are few companies which are creating this benefit to track diamonds.
2) Secure transactions
In blockchain development, as each transaction is verified within the network using complex cryptography, the authenticity of the information can be guaranteed. The insured information is one of the fundamental keys to unlock the benefits of the Internet of Things, which is a closed-cycle autonomous cybernetic process that links assets with actions.
With the help of Blockchain development, you can divide everything into small pieces and distributes them throughout the computer network instead of uploading data to a server in the cloud or storing them in a single location. It is a digital ledger that lacks a central control point. Each node or computer has a complete copy of the ledger, so one or two nodes that go down will not cause any data loss.
Moreover, there is no middleman required to process a transaction. So you can easily rely on a decentralized blockchain.
Also read: The best ways of implementing Blockchain Technology beyond Cryptocurrency
4) Efficient data
The settlement of each transaction can be quick as the transactions are completed directly between the relevant parties without any intermediaries and with digitized information. This has all become possible with the help of blockchain development services provided by the leading blockchain development companies.
In addition, blockchain development provides the ability to operate ‘smart contracts’ that automatically activate commercial actions based on compliance with the criteria established in the contract. This can drastically simplify processes and also eliminate the time and cost of every transaction.
Also read: How can Smart Contracts in Blockchain Redefine Value exchange
5) Impossible to hack
Hackers can easily enter traditional networks and can find all the data in a single repository and filter or corrupt it, but the blockchain technology makes it unbearably difficult. The data is encrypted, decentralized, and controlled by the entire network. Once a record is in the general ledger, it is almost impossible to modify or eliminate it without being noticed and invalidating the signature.
In blockchain development, each legitimate transaction is confirmed by multiple nodes in the network. To successfully hack any blockchain, you would have to hack most nodes simultaneously, which is technically possible with enough power and supercomputing time.
6) Commercial transparency
With blockchain development, you can have a commercial transparency for your business. This is because the lack of commercial transparency can sometimes lead to delays in trade and a collapse in business relationships.
By providing each detail of every transaction against the commercial construct, you can enlist more confidence in the process and thus provide a more stable business relationship based on transparency rather than negotiation.
Which industries can benefit from blockchain development?
In this aspect, financial services landscape is the first one to win the race and most obvious beneficiary of blockchain technology. However, there are some other important sectors where this can bring a transformation. These sectors are listed below:
– Banking sector
– Healthcare sector
– Online advertising
– Stock exchange
– Supply chain management
So we have read how blockchain development services can secure data more. In fact, it is a secure distributed electronic ledger which connects multiple parties within a network of integrity and trust, thus, facilitates the transfer of information and assets. This can securely record all digital transactions in a sequential chain by using cryptographic digital keys that are verified by the network as an authentication key.
Hence, we can conclude that the wider the network and the longer the blockchain, the more complex the digital key and so the more secure the data.