According to Blockchain Market – Global Forecast to 2021 report, the market size for Blockchain technology is expected to grow at a rate of 61.5% during the year 2021.
Blockchain technology will affect many industries & provide a paradigm shift for existing businesses. Early adopters of this technology might even influence how the market will interact with the technology and what the best standards are.
Let’s look at the overall benefits offered by Blockchain.
By making records immutable, Blockchain ensures security on each transaction for businesses. Each transaction is recorded & verified in the network while maintaining information authenticity. This provides users with an audit able data and enables them to monitor transactions too. This ensures users that their private information won’t be stolen and all transactions will be completed within a safe, controlled network.
2. Smart Contracts
Smart contracts enable two parties to exchange money for services or anything of value in a synchronized, transparent way. This is usually done without the need of a third party. This is an efficient way to execute business contracts between two parties who can decide terms & conditions, timing of execution & expiration of the contract, between themselves (Blockchain allows users to manage smart contracts and commercial actions in an automated manner).
3. Frictionless Markets
As this technology expands, it would allow businesses to communicate & transact value effectively between themselves without ever bearing costs incurred due to existence of a third party. For instance, corporations could use cryptocurrency as a source of payment instead of regular paper currency. This keeps out any kind of third party institution which has the ability to influence the value of currency.
4. Not having one point of failure
Even if one node fails, data of transaction is still available from other blocks due to having a decentralized system. Algorithms used in blockchain are meant to cater for any technical information distortion, so they will continue to work even in case of some failures. All the transactions are authorized by miners who are experts in preventing hackers from gaining access to the network.
5. Reliability & Trust
Blockchain uses cryptography, making data forging extremely difficult.
6. Faster Transactions
Normal business transactions take an ample amount of time due to unnecessary delayed caused by third party institutions i.e. Banks etc. These transactions can be shrinked to minutes by using Blockchain.
The biggest edge that blockchain technology has is the ability to maintain records in a decentralized manner with their own proof of vailidity, requiring no need for a central data centre to maintain business records.