What is Blockchain?
A Blockchain is a structure of data that creates a digital ledger of transactions and shares it with a distributed network of computers using cryptography. This allows each participant on the network to transact in a secure way without the need for a central authority.
Why is it so popular?
Bitcoin Blockchain is what makes Blockchain Bitcoin popular. Blockchain is to Bitcoin, what the internet is to email. Bitcoin’s main purpose is to digitally send payments between any two individuals or organizations without a third-party financial institution. The goal is to create an autonomous electronic currency that is protected by a public key encryption, which is unbreakable. And it is all possible because of Blockchain technology.
All these features make Blockchain an excellent solution for many industries specially finance.
Blockchain and digital transformation
Blockchain is rapidly changing the way we organize information on distributed networks and seems like an ideal platform for digital transformation.
Blockchain technology will definitely benefit the businesses using digital business process management. The rise of distributed and decentralized ledger technologies, when combined with the Internet of Things, will be instrumental in disrupting and revolutionizing business process management and business process optimization.
Considering the number of partners involved in any given business process, Blockchains can be used to holistically manage transactions connected to each step. Financial institutions are beginning to experiment with these different implementations using Blockchain technology which are highly agile and efficient – both in terms of optimising certain processes and to deliver secure end-to-end financial systems.
Some of the major banks and leading financial institutes as well as stock exchanges across the world are betting on Blockchain technology for managing their back office functions, credit card settlements and live trading.
How can businesses benefit from the convergence of Blockchain and digital transformation?
A system, where many electronic parties can securely connect, communicate, collaborate, and transact without human intervention can revolutionize the way individuals and organizations transact. Of course, firms should factor in security and accountability issues as well as compliance with government regulations along with internal rules and processes. If implemented, this can result in reductions of costs and time delays, improved quality, and reduced risks and can save millions of infrastructure costs.
Enterprises involved in digital transformation efforts and those that embrace this phenomenon will be able to provide a consistent workflow, better user experience, more streamlined operations and value-added services, as well as gain competitive advantage and differentiation.