Importance Of Bloclchain

A blockchain is a ledger-based peer-to-peer network where each peer has a ledger cop.At the
core, you can find the blockchain’s importance by going through its key features. These features
make blockchain irresistible in diverse scenarios and mark itself as the best possible solution.

Immutability
Blockchain is immutable. This opens a lot of opportunities for platforms that need immutable
traits to make their system more functional in a highly competitive market. Take the supply
chain, for example. Immutability enables companies to ensure that there is no hamper done to
the packages in transit. As blockchain is immutable, it is not possible to alter the package
information in any way. Any alteration will alarm the system.

Transparency
Another crucial aspect that makes blockchain so important is transparency. There are different
types of blockchain. Public blockchain provides transparency due to its nature. It is very useful
for different functions of our society, including doing elections. Companies can also utilize it to
ensure that the end-user can interact with the processes with full or partial transparency.

Digital Freedom
As a human being, one of your rights is freedom. There are centralized entities that offer
connectivity in terms of economy but also take away our freedom. Take your bank, for
example. It can block your transactions or confiscate your account if deemed right. There are
banks that do so — even when the account holders have not done anything wrong. So, if you
are taking blockchain into account, you will find there is no centralized authority.
With blockchain, you get true digital freedom. You are your own bank. You can take out your
money when you want and do it without anyone else authorization. With the lack of any central
authority, you are the sole owner and person responsible for your assets. It gives you the digital
freedom that relies heavily on the backbone of blockchain technology.

Truly Decentralized Services

Decentralized services are the backbone of our futuristic society. Be it asset management or
energy management; there will be decentralized services for every sector out there. This will
give people unprecedented access to the options that are currently not available in the market.
Almost every sector will have decentralized services.
The music industry, for example, can benefit from truly decentralized services where both
creator and consumer can participate without the need for any approval from a big centralized
corporation.
Excellent Use-Cases
Blockchain is not confined to just one particular use-case. This makes blockchain excellent
technology for the future of our society. It can be used in almost every sector, including trade
finance, bank, government, education, healthcare, oil, and so on. These use-cases also have a
huge impact

Better Security
Blockchain uses cryptography to add a layer of security to the data stored on the network. The
decentralization feature, on top of the cryptography, makes blockchain provide better security
than other systems. Cryptography utilized complex mathematical algorithms that are used to
secure the data and systems on the blockchain network.
Also, each block on the network carries a unique hash, which means that no data can be forged
or changed by malicious actors or hackers.

Inexpensive
Blockchain is inexpensive when compared to other technologies. The removal of centralized
authority removes the buffer required to run the network optimally. With no centralization,
there is no need to pay a middleman, improving cost efficiency. In the supply chain, using
blockchain means less paperwork. The paperwork itself costs a lot. There are other costs
associated, including hiring people to do the paperwork and maintain the intermediaries.

Improved Efficiency
Lastly, improved efficiency is another answer to why blockchain is important. The cause is
better security, intermediary removal, and overall better processes. Transactions also take
seconds rather than a week to complete, especially international transactions.

Blockchain Maturity A Big Concern

However, businesses know that blockchain maturity is a big concern. Blockchain is a favorably
new technology when compared to other technologies. It is also suffering from big challenges
and disadvantages of blockchain, including scalability and widespread adoption.
Also, blockchain might not be the answer to every industry out there. The finance sector may
find blockchain very useful, but not in the art sector. But it doesn’t mean that every sector out
there doesn’t benefit from it. The key sectors that can get truly transformed by blockchain
include healthcare, transportation, retail, insurance, real estate, and more!

Blockchain As A Service
Blockchain is a disruptive technology. But it is also expensive to implement and manage. But,
with blockchain as a service, businesses with a lower budget can also transit to the blockchain.
There are popular blockchain-as-a-service (BaaS) services that are trying to solve the demand.
But what is blockchain as a service?
These are the cloud-based solution, which means that businesses don’t have to worry about
infrastructure or maintenance. All they have to do is pay for it like a service. Currently, there are
plenty of blockchain-as-a-service providers.

Importance of Blockchain in Business

Now that we understand the importance from a general point of view. Let’s try to understand it
from a business perspective. For the most part, it is the business that benefits from blockchain
the most. Blockchain is not easy to implement for normal users. It needs to be managed by a
team of experts, which makes it ideal for businesses who have the budget and appetite to
manage the blockchain project.
Why Is Blockchain Important to Different Industry Sectors?
Now that we have understood the importance of blockchain for business. It is now time to
reflect upon blockchain’s importance to different sectors. Let’s cover four of them below.

Importance of Blockchain in Banking and Finance

The banking and finance sector can be drastically improved by blockchain. Digital financial
institutes have the most benefits when it comes to smart contracts. The benefits come from
digital assets, programmable money, and smart contracts. There are plenty of use-cases that
can be used in the banking and finance sector. Especially, trade finance blockchain has gained a
lot of traction in recent times.
Some of them are as below:
Capital markets such as insurance, sales, and trading
Payments and remittances for both domestic and international
Trade finance sectors including bill of lading and letters of credit
Insurance
Investment management including fund launch, administration, and more
There are also few business benefits, including:
Authenticity: It helps finance institutes to bring data integrity and ensure proper authenticity in
their systems
Streamlined Process: It improved operational efficiency, including the ability to do a real-time
settlement, reporting, and audit.
Programmable Capabilities: The entire business logic can be coded including data privacy,
compliance, identity, and so on
Economic Benefits: Better operational cost, fewer infrastructure costs, and transactional costs.

Importance of Blockchain in Healthcare

Healthcare is another sector where blockchain will play an important role. Currently, healthcare
is suffering from a lack of unity. Patients need to carry their documents, and hospitals put
records in separate silos, which takes time to be retrieved when needed. Currently, there are
plenty of use-cases related to healthcare, including the following:
Patient consent management
Drug traceability
Secure electronic health records (ETRs)
Micropayments Incentivization
Clinical trials data security

Importance of Blockchain in Supply Chain

Supply Chain lacks transparency, accurate asset tracking, and enhanced licensing. Blockchain
can improve traceability, transparency, and tradability and have a massive impact on every
sector that relies on the supply chain. Right now, products can be hard to track due to the
unavailability of real-time tracing. Also, it will become impossible for malicious actors to change
goods in any form or factor.