Blockchain backers are betting big on the technology because they believe it can dramatically change how businesses interact with one another and their customers by eliminating the need for a middleman (such as a bank) to conduct transactions. It could also greatly reduce the risk of fraud, speeding up business processes and cutting costs to consumers and businesses alike, experts say. But itâs still in its infancy, which means that many companies are still figuring out how to put blockchain technology to use in ways that will be beneficial to their business and customers, according to experts.
A History of Data Breaches
As more and more companies adopt blockchain as a solution to fight data breaches, it is worth considering how we got here. Data breaches have been occurring since the early 2000s, with one of the most notable ones in recent years being Equifax’s breach from earlier this year. The fact that data breaches and cybersecurity threats are becoming increasingly common means that the need for blockchain to help reduce the risk of them occurring will continue to grow in 2019.
The Security Benefits of Blockchain
A public blockchain is decentralized and transparent, giving any user a set of impartial values to verify any transaction. This means there’s no need for an intermediary, or a trusted third party between two parties making transactions to confirm its legitimacy. With no middleman managing a system, security breaches like the recent Equifax breach would not be possible because data wouldn’t be held in one central location for hackers to steal from.
Disrupting the Status Quo with Decentralized Applications
Blockchain backers see tremendous opportunity in a technology that has applications far beyond cryptocurrency transactions. The result is a veritable explosion of decentralized apps (DApps) with many designed to provide faster, more secure, and lower-cost alternatives to legacy solutions or services.
The implication is nothing short of game-changing for organizations in every industry, with some early examples suggesting just how profound its potential will be for business and society.
How Will it Affect You?
Despite all of the buzz around blockchain these days, it’s still not that well understood. Before anything else, what is blockchain? Let’s break it down. Simply put, a blockchain is a digital ledger that records transactions and saves them in real-time so they can’t be tampered with or changed. This keeps a business’ finances transparent to their investors, because all transaction records are available in an open and secure public space.