Most people are familiar with Blockchain technology about Cryptocurrency like Bitcoin, Etherium, and Dogecoin. But what they may not know is that they can also use the same technology in various other sectors. Here is a list of sectors that can benefit from Blockchain Technology and the challenges they may be facing.
The highest beneficiary of Blockchain Technology is bitcoins through the decentralized ledger of transactions, but it also suffers several shortcomings. That is because Blockchain needs a lot of energy to operate, which turns out to be costly for businesses to operate. Furthermore, Bitcoin mainly uses public blockchains, and therefore it is not safe to store any sensitive information. Therefore, any data proprietary on the public blockchain is exposed to a considerable amount of risk. Here are four options of Blockchains for businesses to choose the one they can use as per their preference.
The public Blockchain is open and allows anyone interested in participating in the transactions and keeping their copies of the ledger. With this kind of Blockchain, the only thing you require is an internet connection. It is the first type to be created, and it is also the one used mainly by cryptocurrencies. Also, other applications like voting and fundraising may use this technology in future. Because the system is open, it is possible to incorporate other uses as well.
Although the openness of this Blockchain is appreciated, one should also think of the challenges that come with it. One of the main challenges is the speed because most of the transactions are very slow, thus limiting the scope of the network.
Unlike the public blockchain, the private one is a closed network maintained by a single central entity. The best thing with this blockchain is enjoying both security and trust in its operations. However, it differs in operation; both the public and private function in the same way.
Due to its efficient centralization, the system operates smoothly and is also under tight security. The primary users of the private blockchain are supply chain management, internal voting and asset ownership and all who want to enjoy the security. However, anyone considering this blockchain should also consider the fact that it may be having many users.
A hybrid Blockchain is something that is in between the private and the public. That means users can connect to the public network without having to supper exposure. In addition, it allows organizations to use customizable rules so that they can connect but keep their data secure.
The only thing that lacks in the hybrid is the kind of transparency enjoyed by other blockchains, and therefore there is no requirement for them to go through the adoption process. Some of the industries that find the blockchain more valuable are real estate and retail.
A federated blockchain combines the public and the private benefits, making sure some of the records are discreet. As a result, several organizations benefit from that kind of arrangement, thus keeping decentralized work in their favor. The best thing about its arrangement is that it is customizable without compromising on efficiency. But, at the same time, it is more vulnerable and less transparent, and it applies mainly to banks, research and food tracking.
The best blockchain for your business is the latest, but you must also implement it appropriately. Our IT consultants will help you in making the right decision.