It’s common, if not normal, for company systems to have a few inefficiencies every now and then. These inefficiencies are often just results of recent changes and improvements in technology that these systems have yet to apply.
Moreover, it’s not that easy to adapt and change as soon as a new release is out; companies have to study how to make these work for their systems.
But It’s no excuse to refuse to adapt these changes just because it’s a fast-paced and taxing world. Should companies refuse to adapt, they risk getting left behind by companies that choose to get past these hurdles.
One relatively recent innovation, however, might just be a way to help these systems stay in the game without the need to constantly chase after updates.
This innovation is blockchain technology and, at its very core, can be used to increase the speed of adaptation and reduce common inefficiencies in systems. Here’s how it works.
How Blockchain Technology Works
For those who aren’t familiar or don’t understand how blockchain works, just think of blockchain technology as a spreadsheet where all transactions are seen by every user. Each entry will be directly linked to the previous one, creating a vertical chain of entries.
Given that, you cannot change anything without getting permission from other users of the spreadsheet. And if you do get permission for changes, everybody’s copy of the spreadsheet will also reflect those specific changes—making it harder for sneaky changes to get through.
This kind of technology addresses issues on traceability, transparency and security of data for companies. The issues mentioned are also considered to be the inefficiencies that companies are still trying to solve.
This is an incredible breakthrough considering a lot of information is considered confidential and must not be tampered with. By utilizing this technology, it makes it easier to store and secure data.
A lot of companies are now looking into incorporating blockchain technology into their systems. One company, however, already took a brave step forward—Fight to Fame. You learn more about the company if you follow Fight to Fame on Twitter for updates.
How Blockchain Solves Common Inefficiencies
As mentioned in the previous section, blockchain addresses a lot of inefficiencies within systems. In this section, let’s breakdown these inefficiencies individually and see how blockchain addresses it.
Improved Data Security
We all know how compromised a lot of our data is nowadays. Unless you pay a huge sum of money to keep your data protected, it’s still quite accessible to the sneaky ones.
Blockchain technology addresses this inefficiency by how it’s designed. Let’s take our spreadsheet example further. Although a lot of users have a copy of the spreadsheet, you can only view entries with your digital signature. Unless you know who’s who, it’s impossible to know personal details.
Moreover, it’s impossible to manipulate data since a newly added entry is directly linked to the previous one. If you want to manipulate a specific entry, you would have to manipulate everything else which proves to difficult considering there are thousands of entries.
Moreover, security measures are costly for companies. By utilizing blockchain technology, a company can save millions of dollars each year.
Let’s still make use of our spreadsheet example.
Before an entry can be encoded into the spreadsheet, the data to be encoded will still be verified if it’s valid and true information. Once there is confirmation, the entry will be encoded into the spreadsheet.
Since entries are already confirmed to be valid and true, this makes it easier for concerned parties to cross-check information. It’s definitely more efficient and faster than the current manual processes utilized by several institutions.
This is most relevant for financial institutions, counter-checking financial records of clients.
With increased efficiency, blockchain technology saves valued time for all parties concerned and we all know time is more valuable than money these days.
Since entries are directly linked to each other and cannot be tampered with, it’s easy to track transactions that are related to each other. Needless to say, related transactions create a trail that users can use to track all entries or transactions.
Just like efficiency, this saves a lot of time for concerned parties.
Blockchain technology is a way to solve common inefficiencies that plague several systems. It addresses issues on data security, efficiency, and traceability unlike any other.
Should companies decide to utilize it, they’ll find that it will definitely streamline a lot of processes and will make it easier for them to adapt to changes in the future.