Why use blockchain?

Despite a number of advantages of the technology blockchain, it is not a panacea for any business, at least for now. Updating the existing infrastructure will be an expensive, time-consuming event and in most cases not justified. At the same time, many organizations have already successfully used the blockchain in their activities, increasing efficiency and reducing costs. Therefore, in the article, we considered the real possibilities of technology, rational spheres of its integration and business directions, where it is really necessary.

During the period of last year’s Hype around the cryptocurrency and blockchain, many high-profile marketing moves were made, which injured the market. It does not make sense to once again talk about

Nevertheless, many fraudulent and extremely exaggerated statements about the blockchain and its capabilities were made. In most cases, this refers to the ICO organizers, which by any means sought to attract as much money as possible, often stating that they will be able to realize their ambitious intentions using a distributed registry technology.

The blockchain is not able to heal from cancer, but it can benefit in health care during data reconciliation or in medical studies. This applies to the real estate market, which is now difficult to make purchases using smart contracts, but in the presence of legislative regulation, this direction has enormous potential.

Technology can also be successfully applied to digital identification. Information can be easily displaced, which allows you to quickly determine the personality of a person, eliminating the need for passports or INN, which can be faked and use the committing various fraud.

Many companies consider the prospects for using the blockchain in their business processes. Supply chain, in fact, is an excellent example of where the technology can be especially useful. There are cross-border payments and high commissions, as well as currency conversion and many intermediaries.

Since the distributed registry guarantees data protection from damage and changes, then digital identity becomes indisputable. This allows you to get rid of not only from a variety of trusted parties, but also manifestations of corruption at various stages.

There is also a possibility that companies and individual links in the supply chain will use for calculations a single cryptocurrency, thus reducing transactional costs and saving time.

In addition, any sphere requiring checks and transparency of operations may

Unlike typical databases, or IP addresses that are controlled by one central authority, the public network cannot be disabled. This feature also increases the security of the system, but about it a little later.

Since many still identify blockchain with cryptocurrency, then quite often wondering the legality of using technology. Compliance with regulatory requirements may vary depending on the jurisdiction. However, the introduction of a ban on virtual currency or the lack of legal regulation of crypto industry does not mean that it affects the blockchain.

As in the case of the Internet, it is just a technology that cannot be regulated at the protocol level. The same China introduced a hard ban on all activities associated with cryptocurrency, but at the state level actively supports the development and study of the blockchain.

Countries are concerned about the observance of legal norms due to the sharp growth in the collection of funds by blockchain-startups, among which there were many fraudsters, from whose actions were suffered by a lot of unreigned investors. Exchange and cryptococheries should also achieve regulatory requirements to ensure user security.

Compared to traditional databases, the blockchain has a number of benefits:

However, the existing versions of the blockchain technology does not guarantee absolute security, as they can also be hacked or most of the participants agree on manipulating the network. Although for a successful attack on the system with high hatchery, a significant amount of funds will be required, comparable to a small country budget. In the case of using POS, similar manipulations, ultimately, are not beneficial for most votes themselves. Private blocks are more subject to manipulations due to a smaller number of nodes and extended rights of individual participants.

One of the key advantages is the ability to create smart contracts, with the help of which you can automate various processes, as well as transactions, data transfer, values, assets and property rights between participants.

The technology is now still at an early stage of development, although some organizations have already begun to integrate (https://bitcryptonews.ru/news/blockchain) it in its activities. With the exception of rare cases, the blockchain provides a high level of reliability, confidence and protection against unauthorized access than outdated databases.

Governments or non-profit organizations can use technology if they need to confirm the confidence of information. Financial institutions already use blockchas to speed up cross-border payments and reduce transactional fees. And we see more and more applications in the energy industry.

Why use blockchain? Why use any technology? Because it accelerates processes, increases efficiency and reduces costs. If this or any other technology does not have such an influence on the company’s activities, it makes no sense of its introduction.

In tandem with artificial intelligence, the blockchain may even