Benefits of Blockchain Technology
The most significant advantage of blockchain’s distributed ledger is reduced operational costs. “Cost can be taken out of existing processes by removing intermediaries or the administrative effort of record keeping and transaction reconciliation,” reported McKinsey & Co. in a June 2018 article. By eliminating the middleman, or data gatekeeper, blockchain allows companies to quickly and easily trace products and transactions all the way back to their roots. Walmart, for example, succcessfully decreased the time it takes to trace food from store shelves to the farm from seven days to 2.2 seconds using a blockchain, according to IBM’s Kelley. That time savings also results in considerable cost savings. Additionally, this streamlined efficiency provides transparency, reliability and authenticity. And let’s not forget about security. Because data is shared on multiple systems in multiple countries — and validated before it’s recorded — it’s more secure. Each data block is encrypted and linked to the one before it.