It seems that every day you hear about blockchain technology, especially if you follow the news about cryptocurrency. Today, blockchain technology goes beyond just cryptocurrency, and financial analysts feel that blockchain technology can help to transform industries well into the future.

What Is Blockchain Technology?

Blockchain technology is a way to verify, store, record, and track transactions in a business dealing or asset. A house, land, vehicle, or boat is a tangible asset, and patents, copyrights, intellectual property, and stocks are intangible assets that can benefit from blockchain technology.

Members of the private blockchain network store information in blocks of ledgers tied together to create a blockchain of transactions shared only with participants in the network. With this system, no one in the network can change or tamper with the information recorded in the ledger. If information must change, the participant creates a new block. Information in the blockchain is permanent. This system reduces errors, fraud, and alterations to the transaction.

Why Is Blockchain Technology Important for Businesses?

The correct information is vital for any business to run smoothly and efficiently. With blockchain technology, participants can track information and transactions faster with transparency that only members of the blockchain network have access to. Ways that blockchain technology can benefit businesses include:

• Trust within the network. Blockchain technology is based on only-members participation. Only those who have permission for the blockchain can view confidential information.
• Better security. Members in the blockchain network permanently record data and this data becomes immutable. No person within the blockchain network can delete or alter the transaction, making all recorded transactions permanent and transparent for those in the blockchain network.
• Businesses run more efficiently. Participants in the blockchain share the ledger and can double-check transactions more efficiently, reducing record reconciliations. The administrator of the ledger can create and store a set of rules, called a smart contract, for automatic use, reducing the time to create new rules.

Are There Other Applications for Blockchain Technology?

Blockchain technology was originally created for the cryptocurrency industry, with its safe and secure methods of recording and storing transaction information. Several businesses and industries that need permanent transaction ledgers can now use blockchain technology for the following applications:

• Real estate transactions.
• Supply chain management.
• Health care privacy.
• International money transfers and payments.
• Money laundering protection.
• Voter fraud.
• Accounting and auditing for taxes.
• Cybersecurity.

As blockchain technology advances, more and more industries can take advantage of the security this technology provides. To help keep your business transactions safe and immutable, consider adding blockchain technology for your confidential data.

Sources: Insiderintelligence.com, IBM.com, Investopedia.com, Venafi.com