Blockchain is an advanced technology that facilitates the procedure of recording transaction information across the network of business. Certain challenges in financial transactions, such as storing transaction details like ownership of assets and money exchange, are solved using blockchain. It is consistent due to people are not able to change or delete data in the blockchain. Many sectors use blockchain for storing transactions and detecting cyberattack breaches. So, people are using blockchain technology to build immutable ledgers for accountants, orders, payments, and other transactions. The main purpose of blockchain technology is to prevent illegal transactions and generate constancy in the public view of transactions.
(Becher, 2024). Blockchain stores data in digital format for transaction safety. In blockchain, all transactions are recorded and stored in the form of blocks and all blocks are connected and organized in a chain. The network ensures that transactions in the blockchain are encrypted and arranged in chronological order, preventing data from being modified without its consensus. Blockchain is an emerging technology with an inclusive variety of applications, from preventing fraudulent transactions and secure records. The main purpose of this report is to describe the benefits,and challenges of blockchain and applications, implementations of blockchain,
Benefits of blockchain technology
The primary benefit of blockchain is transparency. Blockchain records every transaction in a public ledger and allows users to see the transaction history from time to time. Blockchain technology is very safe and secure. (Brothwell, 2023).Blocks encrypt and store all transactions for protection. The method of cryptographic is used to connect each block with the previous one. This technology will help industries save money. Blockchain has decreased manual tasks like information gathering and editing, reporting, editing, and reviewing. In banking and finance industries the blockchain will reduce the transaction cost and make it more accessible for people.
Blockchain authenticates every transaction and detects and prevents fraudulent transactions. So, the blockchain is very efficient in recognizing fraud activities and this feature helps in many sectors like finance, banking, and business operations. A blockchain does not allow for the deletion or modification of recorded transactions because of its immutability. Blockchain delivers high data security for recorded information. Hacking is impossible because blockchain distributes data to all the networks of computers. Blockchain is a time-saving procedure for maximizing efficiency. Using automation blockchain will correct the errors made by humans. Sometimes blockchains will complete transactions within sec or less.
Blockchain enables decentralized ledgers that simplify the record transactions.For the financial procedures over business operations, there is an enhancement ensuring security and transparency. It will facilitate people to transfer money with confidence and the transactions are safe and reliable. In supply chain management, we use blockchain technology to track products or items.Every block in a blockchain is connected to the previous block, creating an unbreakable chain of custody. So, blockchain technology will trace every product or item from source to end destination and simplify the recognition of the problems that may arise.
Applications of blockchain technology
A blockchain technology is used to store transaction data, which cannot be changed or deleted by people. Blockchain is immutable and ensures the data with high level of security. It detects and prevents unauthorized transactions and fraudulent activities. so, blockchain is used in many applications (Villanueva, 2021). Transferring currency by using the blockchain is low-cost and faster compared to other services. In financial systems money transferring takes a few seconds or less than.
Blockchains will build trust between the retailer and the customer, in payment entries. Blockchains have the capability to easily track digitization procedures and it is useful for the retail industry, especially in times of the pandemic. Blockchain is end-to-end visibility for people to understand the system at any time. Blockchain will track the product journey from source to destination and raise problems in the supply chain. It will help to improve supply chain management and recognize the problems in it. In retail, blockchain will protect data by encryption and also prevent cybersecurity breaches (IuonChang & Liao, 2017). It will help grab the buyer’s trust and generate revenue. Buyers use blockchain systems to create authentic reviews and protect them from unauthorized tampering.
introduce efficient procedures
In banking, we use blockchain technology to carry out currency transformation. It included digital transactions and online payments, securing loans. In banking and finance, blockchain will decrease costs safeguard the networks, and introduce efficient procedures. In blockchain, using smart contracts platforms people will automate the contracts, and it will help avoid the intermediaries. It allows trusted payments and contracts between two parties. Smart contracts have various uses such as supply chain, real estate, healthcare and trading, and dispute resolution. Blockchain will allow and standardize the use of financial trading, transactions, and digital currencies to be more secure and faster. Blockchain systemsdeliver transparent and ledger records of transactions, which are helpful in the financial sector. Banks also recognize suspicious dealings and digital marketing actions by using blockchain auditing procedures.
Healthcare is also using blockchain to enhance operations maintain patient data, and improve patient care. For health care, the blockchain introduces HER software. This software stores and manages securely and gives a complete view of patient records. It will help medical professionals to analyze the patient’s health status. Blockchain refers availability of each stage of the supply chain of pharmaceuticals and allows full traceability of medical products. Implementing blockchain technology in health care will secure and find solutions to prevent complex circumstances.
Challenges of blockchain technology
The primary challenge of blockchain is scalability. In the blockchain, particularly those who are using proof of work mechanisms such as bitcoin will allow only a certain number of transactions in seconds. In the design of blockchain, each transaction will be verified by various network nodes, which will lead to latency and limits and affect the ability of technology. Blockchain is an open ledger that is visible to everyone. It is an important factor in many cases, but it becomes a problem if used in sensitive atmospheres.
participate in the legacy system
Only authorized people will view the remodeled ledger option in the blockchain, with restricted access for others..Intermediaries and other parties are generally eliminated, allowing values to be directly converted through the use of blockchain.The blockchain system is useful it is still in the stage of modernization making it difficult to participate in the legacy system. It is expensive overall to protect its adoption by the government and also businesses. Blockchain technology is an advanced system, it includes some complexities, is hard to understand, and has advantages for people. Previously diving into the requests, people needed to read and understand the encryption values and spread records. Another issue in the blockchain is that financial sectors are acceptable to provide secure payment gateways andvarious services at reasonableexpenses compared to expenses acquired in the blockchain.
Another challenge in blockchain technology is energy consumption. Prof of work and popular algorithms absorb more energy. It will be complex for average people to use POW networks (Mitra, 2019). Many blockchain networks are being developed, leading to rapid growth in blockchain technology.So, Each network has its specifications, standards protocols, and uses. The lack of interoperability over the networks is a significant challenge and limits the facility to transfer data and transactions over the various blockchain media. However, accomplishing unified interoperability is a difficult challenge.
Recommendations to implement blockchain
Recommending implementation of blockchain in phases, with the current situation and business plans, is a more effective approach due to its complexity. In blockchain implementation, several steps are taken. The first step is to recognize and clarify the people’s needs. Analyze the exact issues to solve and get clarity on where the blockchain will solve the issues. Here the recommended to start with a pilot project, understand the result, and then apply it on a large scale. PWC recommended some questions that businesses must consider before implementing (Boxho, 2017).
They are what are the impacts of technology in the present market? Blockchain will solve organization issues? After recognizing the use case it is important to design a proof of concept. POC is the strategic procedure to estimate how the blockchain will be achievable for business. Analyzing the planning and estimating steps directly to create the proof of concept. In proving concepts, we develop certain guidelines to explain the project’s steps. Designing prototypes including code, sketches, and designs. Testing prototype to analyze organization happenings.
protocol will create an undeniable system
Next is to analyze the MVP for involving the high features. The next step is selecting the blockchain stage, it is important to select the blockchain platform. Here, various blockchain platforms are available like Ethereum, open chain, Corda, multichain, stellar, and Hyperledger fabric. In the network of distributions, agreement protocol will create an undeniable system of arrangement between the devices. They are various types of protocols are available like proof of work, proof of weight, proof of stack, and delegated proof of stack.
An ecosystem needs to be built next, as it will analyze technology and enhance industry standards and conditions. Stockholders will decide the rules and right framework., governance mechanism, and blockchain functionalities. The latest ecosystem must have the ability to clear the business problems. It also addresses cybersecurity issues, privacy implications, and compliances. PWC advised that organizations must comply with the latest blockchain policies while observing the evolution of regulations.
Conclusion
Users record transactions in the form of blocks using the emerging technology Blockchain.
Those attempting to modify or delete information in the blockchain ledger will be denied the ability to do so..Everyone can see that this technology solves many challenges of traditional databases. So,Many sectors including healthcare, retail, finance and banking use blockchain technology for storing currency transactions and enhancing operational efficiency. The procedure of blockchain is different for every sector.In Blockchain,every transaction was verified, and protected from fraudulent activities.So, It provides high-level data security and prevents transactions from cyber-attack breaches. Every technology has challenges and advantages, so adopt the technology and make use of the features of technology.
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