How Blockchain Technology Is Dominating Digital Transformation Conversations
This is Jerry.
This is Jerry’s friend, Ross.
Jerry is an IT professional at a financial firm that is implementing blockchain technology.
Ross wants to learn more about blockchain technology and why it is dominating almost every digital transformation conversation he was with Jerry.
Jerry decides to teach Ross more about blockchain technology and informs him of the many benefits this technology can provide, especially when it comes to financial institutions.
Jerry tells Ross that the main benefit of blockchain technology is the encrypted chains which ensures increased security.
Transactions are processes in blocks that are linked within a chain, making blockchain act as a shared, distributed, and immutable ledger for recording assets within a given network.
Each block incorporates a cryptographic hash, as well as the hash from the previous block, which strengthens security and maintains the integrity of the entire chain.
Jerry tells Ross that another big advantage of blockchain technology is that its ledger of blocks and transactions enables all participants to work with a single version of the truth. Blockchain uses distributed ledger technology (DLT) to record and share each transaction once to create an immutable record for all participants.
Blockchain technology allows users to utilize smart contracts, which exist independently without the need for a middleman or human arbiter. Jerry tells Ross of other workflow hurdles he can clear with this technology such as:
- Know Your Customer (KYC)
- Credit Reporting
- Legal Entity Identifier (LEI)
- Digital Vaults and Document Transfer
- Personally Identifiable Information (PII)
- Source of Funds
- And ACH Information, just to name a few
Ross is intrigued and wants Jerry to show him blockchain technology in action. Jerry makes plans to take him to a blockchain technology convention in Las Vegas, but first, he shows him how blockchain works on a small scale within his company.
If you want to learn more about the impact of blockchain technology, click the link below for more information.