Blockchain – The Future of Business Financial Transactions Has Arrived
Financial security is essential to every business, but it’s difficult to assess. Ask yourself, how do you ensure that invoices are paid on time, purchases are properly approved, and fraud isn’t taking place? Whatever your current systems, it’s time to investigate blockchain. Blockchain technology provides a virtually impenetrable accounting system for every business, regardless of your industry.
Invented in 2008, blockchain was developed for bitcoin by Satoshi Nakamoto. The idea was to create a public transaction ledger to ensure fraud was not taking place within the bitcoin community, without the need for a central authority to provide oversight. Fraud is particularly easy to commit in the digital world if you know how. Blockchain provides a record-keeping system that makes fraud nearly impossible.
Evolution of blockchain
Once blockchain was implemented in bitcoin and shown to be useful, developers began to envision how blockchain technology could be utilized for other businesses. Now, blockchain is set to disrupt every industry on a global level. Everything from accounting to inventory control will be impacted by its development over the next decade. Blockchain is no longer just about financials — it will completely change the way business is done.
How blockchain works
While extremely sophisticated in its design, blockchain technology works in a rather simple and elegant way. In short, blocks of information are created and linked in real time to one another. The information is stored sequentially, and a single block of information is recorded for every action along the chain creating a public ledger. Once an action is stored, it cannot be altered without the consensus of everyone involved.
The concept is similar to Google Docs, with up-to-date public ledgers being accessible to anyone who has access since the software updates information every 10 minutes. Consider this in contrast to utilizing Microsoft Office applications such as Word. Multiple people can work on a Word document at the same time, but no one can see what anyone else is doing until an updated document is shared.
Benefits of blockchain
The benefits of blockchain are many, and the technology is versatile. Blockchain provides real-time reporting and documentation while creating permanent and transparent recordkeeping along with reduced costs, increased privacy, and robust security. In 10 years, there has been no disruption in the bitcoin blockchain system that can be traced back to the technology. Any problems bitcoin has faced came from people with bad intentions.
Currently, blockchain is most widely used for financial transactions. It allows fast and efficient recordkeeping, payment processing, and purchasing. However, the technology is capable of so much more. Everything from inventory management to identity protection to public trading to document tracking for every functional area of your business can be streamlined into one system, improving your ROI and business transparency.