SECURITY BENEFIT OF APPLYING BLOCKCHAIN WITHIN INDUSTRIES, AND THE IMPACT OF CRYPTOCURRENCY ON INDUSTRIES
Before we discuss the security benefit of blockchain on industries, we need to understand what blockchain is and how it benefits any industry when applied.
A blockchain is a digital ledger of transactions. This transactions are duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. 1 In this way, the database is decentralized and managed by multiple participants in the chain. This type of ledger is called distributed ledger technology (DLT)
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Just as it is called, the blocks are in chains. Suppose one block in one chain was changed or tempered with, it would immediately become apparent. If a hacker wanted to corrupt a blockchain system, he would have to change every block in the chain, across all of the distributed versions of the chain.
There are numerous benefits when this method of ledger is applied in industries.
1: TRANSPARENCY
Because of the structure of blockchain it's transaction ledger for public addresses are open for viewing. In financial systems and businesses, this adds an unprecedented layer of accountability, holding each sector of the business responsible to act with integrity towards the company’s growth, its community and customers.2
2: EFFICIENCY
Due to its decentralized nature, Blockchain removes the need for middlemen in many processes. When compared to traditional financial services, blockchain facilitates faster transactions by allowing P2P, cross-border transfers with a digital currency.
3: IMPROVED SECURITY
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From the points we made above, you will notice that it will be difficult to alter a block without it being noticed, and without it affecting the rest of the chain. That makes bockchain difficult to hack.
4: EASIER TRACEABILITY
With this form of ledger, each time an exchange of goods is recorded, an audit trail is present to trace where the goods came from. This can help improve security and prevent fraud. It can also help verify the authenticity.
Let us now see how using cryptocurrency in transaction can impact favourably on industries
1: lower transaction fees
It’s no secret that small businesses are getting creamed by processing fees, so accepting cryptocurrency can help mititgate the sting. By general rule, cryptocurrency has lower per transaction fees than accepting credit cards and debit cards.3
2: You get money faster
When accepting credit and debit card payments, there are serious delays. This is due to the fact that there are various parties involved and these parties have different rules. Therefore a transaction can take days or even weeks to hit the recipients bank account. Just imagine how frustrating this could be especially if you have bills to pay .
3: cryptocurrency ease for international transactions
Cryptocurrencies makes it easier for merchants to expand beyond their own borders without having to worry about the costly consequences.
4: fraud protection.
The very important reason to choose cryptocurrency is protection against fraud.
With cryptocurrency, clients and customers don’t need to give you personal financial information.
CONCLUSION
Without mincing words blockchain has come to bridge the rift and solve the many problems facing traditional finance system, one of such biggest challenges being security.
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