Digitalization has changed how enterprises are working and continue moving toward a more focused and streamlined way of exchanging information over the decentralized system. The concept has given us digital freedom and advanced methods to boost the way we do transactions. But have you wondered what is blockchain and why it is important? Well, blockchain is redefining security measures, and every individual or organization is adopting the technology.
What is blockchain?
In simple terms, a blockchain is a shared database or ledger where data is stored in the form of blocks. Each node of the blockchain is secured and in case someone tries to manipulate the data in the blocks it will be clearly rejected. This ensures the utmost security for the products and applications across various enterprises.
Blockchain technology makes it easier for multi-step transactions that need such verification and traceability to be verified and tracked. It can speed up data transfer procedures, minimize compliance costs, and ensure secure transactions.
3 Major benefits offered by blockchain
Let’s consider the various benefits of blockchain technology-
- Accuracy and efficiency
The most beneficial aspect of blockchain technology is that it is extremely accurate.
An immutable public digital ledger, which underpins blockchain, prevents changes to transactions once they have been recorded. Because there is no human intervention or potential for human error, the accuracy is improved.
Once a transaction has been accepted, it is also encrypted and connected to the prior one. As a result, no one person has the power to change a record.
- High-level security
Security would always remain the best feature of blockchain. This is because of its encryption characteristic, it offers the best security measures. Since it works on multiple nodes called blocks, nobody can make changes or modify the data over the network. Therefore, no one person or entity has the authority to alter a record. The blockchain is decentralized, therefore nobody has the power to update records whenever they want.
Blockchains are always cost-effective because the blockchain eliminates the need for intermediaries and third parties, and businesses save a lot of money. Because there is just one, unchangeable version of the ledger available to everyone, less time and money must be spent on documentation and modifications.
Former ConsenSys leader Kavita Gupta takes on blockchain
Former Consen Sys leader Kavita Gupta started exploring cryptocurrency in 2013. She later invested in other businesses while helping to co-found the blockchain accelerator Tachyon and the Consensys Ventures software company for Ethereum, while Delta Blockchain Fund is her current venture.
Additionally, she emphasized that ConsenSys was a natural evolution. ConsenSys was established as a means of developing concepts on top of the Ethereum network. It also established ConsenSys Academy to begin instructing engineers on how to carry out that task independently. ConsenSys currently occupies a kind of middle ground, supporting entrepreneurs while still allowing them to pursue their own interests.
The exponential growth in adoption has opened the door for improvements in all facets of the blockchain ecosystem, including enhanced blockchain infrastructure, blockchain-based applications, the adoption of more widely used and developer-friendly programming languages, and a stronger emphasis on institutional adoption and regulation.
She thinks that we will just build an interoperable chain to start, and that chain will then employ all of this infrastructure acquired from different chains as needed. And that is how she envisions the future of blockchain.