The financial fiasco of 2008 resulted in widespread criticism of the conventional central authoritative data control systems. The world’s financial system came to the brink of collapse and calls were made for a drastic change. Although there were few positives to be taken from the financial crisis, a revolutionary, self-compliant and self-regulating decentralized system was born: blockchain.
In basic terms, blockchain is a non-centralized digital ledger which connects multiple parties in a secure network based on integrity and trust. Originally designed as the underlying system that legitimizes bitcoin as a genuine electronic currency, blockchain did this by using cryptographic digital keys to securely record electronic transactions in a sequential chain. The chain, which is held on every computer of the network, prevents transactions from being changed, removed or duplicated. As the network of a blockchain grows, the digital key’s complexity increases, and the network becomes more and more secure.
Blockchain as a Revolutionary Trading Platform
Although it was developed to be the underlying foundations of crypto currencies, more and more businesses and corporations around the world are waking up to the numerous benefits of blockchain as a trading platform. The number of businesses that are investing in blockchain development is rapidly rising. A PwC survey revealed that 84% of companies are exploring ways to integrate blockchain technology in their operations.
Furthermore, even governments around the world have been trialing blockchain technology
in various public services, including voting, health and taxation.
All categories of trade involve the exchange of assets between multiple parties, and conventionally, there has always been a central third party that brokered the deal and provided security. The third party generally requires compensation for their services. Blockchain revolutionizes trade a
nd its trusted and secure network eliminates the need of a third party.
Here are some of the main advantages of utilizing blockchain as a trading platform.
As blockchain renders an intermediary obsolete, all transactions between relevant parties can be settled in a quick, concise manner. Furthermore, blockchain brings smart contracts into play. Smart contracts automatically initiate commercial actions that are laid out in the contracts. Blockchain drastically streamlines processes while also eliminating unnecessary downtime and costs.
Commercial transparency is not always guaranteed with traditional trading platforms and this result in unnecessary delays and damaged relationships. Blockchain brings more transparency to transactions. This provides a basis for more stable transactions that are based on transparency rather than negotiations.
In blockchain, the authenticity of information is guaranteed as it uses independently verified complex cryptography to verify each transaction within the network.
If you are seeking quality blockchain consulting services for your business, contact us at CaptainSheep. In addition to blockchain consulting, we also provide quality website development and content writing services.