The blockchain technology is one of the main interest for companies across many industries since it provides several new advantages that go behind cryptocurrencies. More than that, due to lack of regulation, the development of blockchain solutions without using crypto is now the main trend. But why did the blockchain become so important all of a sudden? We believe there are four main reasons and today we’ll discuss briefly about them.
Reason #1 Decentralization
One of the first advantages of blockchain is that it enables the storage of data in a decentralized manner. By doing so, data is being secured and at the same time, the risk of losing it in case some devices break is zero, since it could be recovered easily from other nodes. Decentralization is also democratizing the economic world since, with the blockchain, both small and big companies can compete and benefit equally. A proper decentralization method will prevent entities from acquiring more power and dominant influence, an issue with negative long-term implications.
Reason #2 Transparency
What’s different with the blockchain is that all the stored data becomes transparent. With the exception of networks providing privacy features, most of the blockchain are transparent and provide trust for all economic actors involved. Once a transaction had been completed, it’s being stored in a block and will be available for as long as the blockchain will continue to exist. Even cryptocurrencies have proven to work on transparent blockchain. Bitcoin continues to dominate, but other altcoins had also shown investors can rely on them.
Reason #3 Increased productivity
Companies are embracing blockchain solutions because of their ability to increase productivity by getting rid of unnecessary work. Reducing bureaucracy and automating repetitive tasks is possible via a system that incorporates some of the latest technologies, including the blockchain. Productivity is the main long-term economic driving force and without it, the world will be on a downward slope.
Reason #4 Improved economic performance
Only by using technology, humanity will manage to move forward. Our physical limitations put a cap on our potential, but now that we have advanced tools, the improvements become unlimited in the long-term. Companies are now investing tens of billions a year in developing blockchain-based solutions and without solid proof this would improve economic performance, this would never happen. Like any technology, it might have limitations, but the bottom line is that with blockchain the world can become a better place if implemented efficiently.