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In recent years, the term "blockchain" has gained considerable attention as one of the most transformative technologies in the digital age. It is often described as a decentralised, tamper-proof, and secure digital ledger that can facilitate secure and transparent transactions.
Blockchain technology has revolutionised the way businesses operate and has the potential to reshape entire industries. In this article, we will explore the reasons why blockchain is essential for businesses.
Enhanced operational security via blockchain
Security is one of the most crucial aspects of business operations, and blockchain offers a high level of security for businesses. Blockchain technology ensures that transactions are secure and tamper-proof by providing public records that cannot be changed or tampered with.
Every transaction on the blockchain is verified by a network of computers, and once approved, the transaction is recorded on the blockchain ledger, which is immutable. This means that once a transaction is recorded, it cannot be altered or deleted, providing an unparalleled level of security for businesses.
An excellent demonstration of this is Certihash’s Sentinel Node. The cybersecurity platform uses blockchain to secure data integrity and protection against cyberattacks and hacking attempts. Sentinel Node provides a tamper-proof record of critical data, meaning that any attempts to access or alter these data are recorded. Thus, it significantly reduces the risk of cyberattacks and prevents substantial damage to critical infrastructure.
Blockchain offers business improved transparency
Transparency is another critical factor for businesses, and blockchain technology offers an excellent opportunity to enhance transparency. The decentralised nature of the blockchain means that transactions can be tracked and verified by anyone on the network, making it easier to detect fraudulent activity.
This can help businesses improve their reputation and gain the trust of their customers and investors. A prime example of this is supply chain management.
Blockchain technology can help businesses improve their supply chain management by providing a transparent and secure platform for tracking products from the manufacturer to the end consumer.
By using blockchain, businesses can verify the authenticity of products, track inventory levels, and monitor shipping times, improving the overall efficiency of their supply chain management.
Saving costs by reducing intermediaries
Blockchain technology can help businesses save costs by eliminating the need for intermediaries, such as banks and payment processors. Blockchain allows businesses to conduct transactions directly with each other, reducing transaction fees and processing times.
This can result in significant cost savings for businesses, especially those that conduct a high volume of transactions. An important feature in this context is micropayments. The Bitcoin SV blockchain is the only blockchain that can reliably guarantee transaction costs at a fraction of a cent - whether it is at 50,000 transactions per second or in future for a billion transactions per second.
A scalable blockchain helps reduce costs by increasing the transaction throughput and processing capacity, allowing more transactions to be processed simultaneously. This reduces the time and resources required to process each transaction, thereby reducing the overall cost of maintaining the blockchain network. Additionally, a scalable blockchain can support more users and applications, increasing its adoption and generating more revenue, which further reduces costs through economies of scale.
Gaining interoperability thanks to a shared blockchain infrastructure
A blockchain that scales unboundedly can be used as a global source of truth. Any applications that use blockchain can thus access the same stack and easily interoperate with each other.
Those who opt for private, permissioned blockchains will lose this benefit as the model results in data silos that make access to and from other applications difficult.
A public blockchain, on the other hand, offers many other advantages and can easily emulate the properties of a private blockchain, provided that it scales. If you are interested in this particular aspect, we have described this subject in-depth in our eBook ‘The fallacy of private permissioned blockchains’.
