Implementing blockchain in your business: The pros outweigh the cons

Blockchain technology offers a superior level of data quality. It has created newer avenues of growth for various businesses. However, it also has some pros and cons.Therefore, managers are advised to track blockchain technologies to assess their effectiveness and leverage their benefits for new value creation

- Milan Ganatra

The launch of Bitcoin in 2009 introduced blockchain technology to the real world, highlighting the use and functionality of a digital distributed ledger technology. Today, the disruptive implications of its features are far-reaching. Blockchain technology can displace intermediaries, such as brokers, notaries, and banks, whose business models rest largely on providing independent third-party verification. Several renowned companies, government agencies, and nonprofit entities are relying on blockchain technology to improve existing operations and enable new business models.

▾ What is blockchain technology?

Blockchain technology is a decentralised ledger system where there are blocks with unique characteristics. Every block is connected to another block to form a chain-like structure. These blocks contain information, and the connections in a chainlike structure indicate the linking process. Participants authorised to access the network can view and add information but not make alterations to existing records. All information within a block is cryptographically secured.

▾ What makes the technology special?

The value of blockchain lies in its ability to share data quickly and securely without a single entity having the burden of safeguarding the data or facilitating the transactions. Blockchain eliminates the role of a central authority controlling all data stored in a given database and creates a single source of truth wherein parties can read and write to a common database.