Blockchain technology creates an immutable data chain based upon a decentralized network. Anyone can see the history of transactions if they join the network. And it’s being used by governments to digitize their identity records. Here are some examples to show how it can help your business.
Blockchain technology is a decentralized data base
In contrast to traditional online databases, which have a centralized administrator, blockchain databases are held by hundreds or even thousands of computers distributed across a network. These computer nodes update a decentralized database leadger with new data every so often. The database is updated by the entire network with the same information. This ensures that everyone can see any changes or additions and can make any adjustments.
It is immutable
The main benefit of blockchain technology is that data cannot be changed. A traditional database can be tampered with, resulting in invalid data. The blockchain is immutable as all nodes must consent to any changes. Additionally, changes to the data require adoption by all nodes of the network. The immutability of blockchain makes it impossible to alter the data by unauthorized users. This is especially important for businesses and organizations, as it helps to prevent any complications that can occur during audit.
It eliminates the need to have third-party verification
The process of transferring money through financial institutions is very slow, and often requires a third-party to verify the transaction. Consumers pay fees to these third-party companies. Furthermore, businesses incur small transaction fees in order to process credit cards, which can be avoided with blockchain. Bitcoin transactions are free of transaction fees using chaingateway.io because there is no central authority. Blockchain transactions offer many benefits.
It is used by governments to digitize identity records
The federal and state governments hold trillions upon trillions of documents. It is essential that they securely store them. Blockchain technology can help with this. Blockchain technology has been embraced by many organizations and governments as a promising solution to this problem.