Blockchain Technology: Changing the Status Quo
Blockchain technology has quickly become highly popular in the financial world, making it possible to transact with cryptocurrencies, such as Bitcoin, Litecoin, Cardano and Ethereum, online. Blockchain, a distributed ledger technology, consists of a chain of blocks that store data or pieces of digital information securely.
With cryptocurrency, this information includes data around transactions, such as the transaction amount, the nature of the transaction activity and the transactorâ€™s username or digital signature.
A peer-to-peer network manages the blockchain while adhering to the procedure for authenticating new blocks.
If a transaction block is recorded, it cannot be changed. The data is encrypted and stored in many computers, so there is very little risk of any data loss or the leaking of confidential information.
In a world where data privacy, security breaches and corruption have increased exponentially, blockchain and cryptocurrency offer an improved and secure method of sending and receiving money.
More and more businesses are implementing these technologies into their financial processes to offer more security. Businesses can hire ruby developers, programmers and other digital engineers who are experienced in this technology to implement it to improve credibility and to avoid security breaches and corruption.
Through the decades, corruption and fraud have limited productivity, not only in businesses but in countriesâ€™ government structures, on a global scale. With traditional financial systems, it is much easier for criminals to steal funds and to get their hands on personal information.
Unlike with traditional money, the traceability and lack of anonymity with blockchain and cryptocurrency can reduce this. Where traditional money uses a central authority, such as a bank, to authorize transactions, transactions made with cryptocurrency are also controlled and authorized by a network of computers.
This is known as a ‘decentralizedâ€™ method and is a much secure form of sending and receiving currency. If more businesses, as well as larger corporations and even governments, start using cryptocurrency and decentralized blockchain, there is a big possibility that corruption and fraud can be reduced on a large scale.
Traditional ways of sending and receiving money have made it incredibly difficult to track and trace it. With traditional transactions, data, such as credit card details, banking details and personal information can also easily be stolen.
Enter cryptocurrency and blockchain. Blockchain was only launched and used in the real world in 2008, while the first cryptocurrency, Bitcoin, was released in 2009, but it has already made major waves in the business and financial sectors.
Letâ€™s look at how these revolutionary technologies can reduce fraud and corruption today:
Fast And Easy Traceability
The secure and transparent nature of blockchain and cryptocurrency make it easy to track and trace funds. Anyone with a computer can join the blockchain network.
Every computer in this network has a copy of the blockchain and the information on it. This makes it incredibly easy to track and more difficult to change or manipulate.
Easily Accessibility of Information
With the transparency involved in cryptocurrency and blockchain, information about transactions is more easily accessible.
This creates a trustworthy environment. For example, if a government releases large funds for certain purposes, the details thereof can be made public easier. This transparency makes it more difficult to hide or steal funds.
The peer-to-peer nature of blockchain transactions and the fact that there is no middle man, make it a smoother and more secure process. In other words, the possibility of fraud taking place is less, as the steps involved in completing a transaction is lower.
Often, when fraud or corruption takes place, it can be difficult for law enforcement agencies to do crosschecks to see where the crime has been committed. With blockchain and cryptocurrency technologyâ€™s transparency and open information system, enforcement can do crosschecks faster and it is easier to monitor criminal activity.
Improves Consumer Trust
For businesses who offer products and services online, it is highly beneficial to invest in cryptocurrency. It offers a safe and secure way for consumers to transact. Furthermore, business-to-business transactions, which usually involve bigger amounts, can also be made securely.
It is the task of developers to implement a cryptocurrency facility into businessesâ€™ applications. Businesses who are looking to invest in this new technology can hire Ruby on Rails developers, Ruby on Rails programmers and other developers to build new applications or to improve existing ones.
A Ruby programmer salary may increase business costs, but the benefits of investing in expert blockchain application development far outweigh that of traditional processes.
Other Benefits of Blockchain And Cryptocurrency
Besides blockchain and cryptocurrenciesâ€™ safety and security benefits, there are plenty of other advantages that make it the ideal form of transacting. These benefits include:
- A faster way of sending and receiving money
- Improved automated trading through, for example, a crypto trading bot
- A more cost-effective method, as unnecessary bank charges are cut out
- Easier international trade
While it can be expensive to build new applications with Blockchain and cryptocurrency installed, it can greatly improve businessesâ€™ processes and increase trust in the future. For example, an investment in Ruby on Rails development can lead to new, improved and more stable applications to send and receive money.
The Bottom Line
With the increased use of blockchain and cryptocurrency in the business world, transparency and security of public financing are growing, which reduces crimes, including corruption, fraud and data theft.
This makes it safer for consumers to transact with businesses. Ultimately, it offers businesses more credibility. While blockchain is still being explored, its benefits cannot be denied.
Any business that wants to take advantage of this technology can hire Ruby developers and other programmers to work on custom blockchain and cryptocurrency applications, and improve their reliability and integrity in the future.