Why Blockchain Technology ?
Last updated
Last updated
Since its introduction in 2009 with Bitcoin, blockchain technology has been recognized as a game-changing technology that will change the way organizations transact with each other as well as with consumers. By 2025, it is predicted that Blockchain and DLT will store 10% of the global GDP.
The advantages of adopting Blockchain technology lie in its features as shown below:
Since The most important features are Transparency, Unalterable & Very Secured, since this creates or at the very least enhances the ‘Trust’ factor between transacting & reporting parties. This is due:
Blockchain information traceability which enables transaction information, capital sources, asset information, and other data in the business to be traced, clear and transparent. This reduces the costs of risk control & supervision.
Blockchain anti-tampering features mean trust is guaranteed, and the validity of the data obtained from the blockchain is guaranteed. This reduces authenticity verification costs.
New data sharing model. The blockchain decentralized ledger feature means that data is visible and consistent to all parties, therefore transaction confirmation process of transfer, settlement, and audit, can be done more efficiently and costs effectively by saving extra work expenses such as data transmission, settlement, and reconciliation, and manual verification that were caused by using current asymmetric information system.
Business process remodeling. Blockchain smart contracts ensure the independence of any transaction execution in the blockchain since it can’t be interfered with by any party to the transaction, this provides a reliable execution and processing environment for any transacting parties
As shown in the graph below, the main thrust for the adoption of blockchain technology is mainly to improve business operational & transactional processes and hence leading to a reduction in costs and an increase in profitability for the organization.