The recent spate of news from the finance and banking sector regarding blockchain has put forward two questions: are there benefits of using this technology? And, if so, how will these benefits change our society? These questions could have resulted in two fundamentally different responses.
Everyone in the financial services industry will likely claim that their particular system is secure and reliable and, if it were not so, there would be no need for using a digital ledger. Another industry that benefits from this technology will be those industries where, at some point in time, a new trend is needed to improve efficiency and make things run more smoothly.
The financial services industry is, first of all, central to the lifeblood of society. Money is the basic underpinning of the economy. When something does not fit, it often creates an instability that causes economic problems.
With that said, when it comes to using the blockchain as a standard. The first beneficiary will almost certainly be finance and banking. The blockchain can quickly and easily be recorded to be accessible to all. Therefore, it makes it easier to track expenses, balances and records.
Benefits Of Blockchain
The blockchain is also perfect for the financial industry. Not only can financial documents to be stored on a digital ledger. But it is also convenient and secure to store these digital documents on one computer. This digital storage also makes it easier to access them from any location.
In terms of overall cost savings, the use of the blockchain allows for saving the companies. By eliminating inefficient processes and therefore increasing productivity. A digitised accounting system means that once all the reports are created. Then they can be accessed in a very quick time frame.
Accounting and tax preparation software is also much cheaper when compared to what financial service organisations can do themselves. After all, if something were to go wrong, the company would still need to spend money to fix the problem. Therefore, they would spend money on ensuring that the problems were resolved. And a new set of records would need to be generated.
As a result, savings from the use of the blockchain will certainly add up to the total cost of running the business. The advent of the blockchain will mean that everyone who wants to use it will be able to use it. Thus, the long term costs are minimal and will remain low over the longer term.
So, where does this leave the answer to the question of the benefits of blockchain? In a word, it is difficult to say.
There is no doubt that the benefits of using the blockchain are vast and impressive. However, many people are unaware of how many advantages they bring. The common misconception is that it will save companies money, but this is not the case.
It is true that by using the blockchain, you will be able to save money. But you could also be saving the planet from certain calamities. Therefore, if you want to invest in something that is likely to save you money. While also saving the world, then you will need to look further.
Do your research, consider all the potentials. And rewards that are available and choose the option that is right for you. The benefits of blockchain will no doubt become apparent in the future.