Being one of the most searched topics on the internet, blockchain technology has been gaining adoption since the larger organizations at the top of the spectrum started utilizing it.
Nowadays, many startups are adopting the use of blockchain technologies as the main pillar upon which they hang.
We’ve seen many benefits of how blockchain technology helps in different industries, and how they assist various professionals, but we’re moving it to a larger scale.
How does blockchain help organizations share data?
In our previous posts about blockchain technologies and their possibilities, we’ve defined blockchain from many perspectives some of which are digital ledgers, private notebooks, Lego Blocks, and card games.
To summarize it all, the blockchain is a special kind of technology that acts like a digital ledger.
It keeps track of information, just like when you write things down in a notebook.
But the main thing about blockchain is that it stores information in blocks, and these blocks are linked together in a chain.
Hence, that’s why it’s called blockchain!
In this post today, we’ll study how blockchain helps organizations when sharing data.
Sharing Data Made Easy
Each block in the chain contains some information, like a piece of a puzzle. When you put all the blocks together, you get a complete picture or story.
The special part is that once information is added to a block, it can’t be changed. It’s like writing with a permanent marker that can’t be erased.
Let’s break it into simple easy parts.
Imagine you have a secret recipe for the most delicious cookies in the world, and you want to share it with your colleagues at work.
But you don’t want anyone to change the recipe or claim it as their own.
So, you write it on paper and send it as a view once image to your Whatsapp group. Easy, right?
But, on a larger scale like in an organization, sharing of data across involves a lot of risk and to reduce the risk involved…
That’s where blockchain comes in handy!
A private blockchain helps organizations share data in a way that keeps it safe, secure, and unchanged even when it is shared across multiple receivers.
What Makes Blockchain Special
Blockchain has a superpower called decentralization. That’s a big word, but don’t worry, I’ll explain.
Every public blockchain is decentralized, which means there is no boss or central authority controlling it.
Instead, many people called “nodes” work together to make sure everything is fair and accurate.
They all have a copy of the blockchain and keep it updated by agreeing on the information to add.
Decentralization is one of the blockchain’s biggest standout features but the blockchain is also special for several reasons. Let me explain why!
How Blockchain Help Organizations Share Data
These are a few ways that the blockchain can help organizations when sharing data:
The Power of Decentralization
Unlike traditional systems where there is a central authority in control, blockchain operates in a decentralized manner. It means that there is no single person or organization that has all the power. Instead, many computers, called nodes, work together to maintain and verify the blockchain.
This decentralization makes blockchain more transparent, secure, and resistant to manipulation.
Decentralization, a powerful feature inherent in every blockchain helps organizations in sharing data. Here are some noteworthy examples:
Helps with the elimination of intermediaries: With traditional methods of data sharing, organizations often rely on intermediaries such as banks, government agencies, or third-party service providers. These intermediaries act as gatekeepers, adding complexity, delays, and costs to the process.
Resilience and Security: Centralized systems can be vulnerable to single points of failure and cyber attacks. When data is stored in a centralized database, it becomes a tempting target for hackers. Decentralized blockchain networks are designed to be resilient and secure. Since the data is distributed across multiple nodes, it becomes extremely difficult for an attacker to compromise the entire network.
Data Ownership and Control: In centralized systems, organizations often have limited control over their own data. They need to rely on the rules and policies set by the central authority. Decentralized blockchain networks empower organizations by giving them ownership and control over their own data.
Security: Locking the Data
The second feature that makes blockchain help organizations when sharing data is its next level of security.
All blockchains both private and public use advanced encryption techniques to protect data. These security measures taken are more effective than recaptcha that Google uses to prevent automated access to websites.
When data is added to the blockchain, it is encrypted and converted into complex mathematical algorithms. This encryption ensures that the data is stored securely and can only be accessed by those with the necessary decryption keys.
It’s like locking your secret treasure box or your wallet with a special code that only you and your trusted friends know.
Blockchain helps organizations by relying on a consensus mechanism, such as Proof of Work or Proof of Stake, to validate and verify transactions and data.
In a decentralized network, multiple nodes come to an agreement on the validity of the data before it is added to the blockchain.
This consensus mechanism ensures that only accurate and trustworthy data is included in the blockchain, preventing malicious actors from introducing false or fraudulent information.
See also: Web3 Payments: 6 Things You Need to know
Transparency: Seeing Everything
The transparency of blockchain technology plays a significant role in helping organizations when sharing data. Let’s take a look at how it benefits them.
When organizations share data on the blockchain, everyone involved can see and verify the information. This visibility feature by the blockchain helps everyone on the network to track the movement of the data and ensure that it is true and accurate.
Any attempt to tamper with the data or introduce false information can be easily detected by comparing multiple copies of the blockchain held by different participants automatically.
Again, it helps organizations share data on the blockchain without any compromise.
Immutable Records: Never Changing
The last feature that blockchain helps organizations share data is its Immutability.
When something is immutable, it means it can never be changed. In blockchain, once information is added, it stays there forever. It’s like writing your name on a wall with a magical marker that can never be erased
This feature alone provides a high level of data integrity, giving organizations confidence in the accuracy and reliability of the shared information. They can trust that the data remains unchanged throughout its lifecycle on the blockchain.
In situations where disputes arise, the immutability of the blockchain serves as a neutral source of truth. Since the data cannot be modified retroactively, it becomes an unbiased reference point for resolving conflicts.
The organizations involved in the transactions on a particular blockchain can be certain that they can rely on the accountability of the chain to provide correct information for both parties.
In summary, embracing the immutability of blockchain helps organizations share data and leverage the benefits of a tamper-resistant and transparent platform.
Blockchain also helps organizations share data by making transactions lightning-fast!
Like having a superhighway where multiple cars can travel at high speeds without congestion blockchain networks are designed to handle a large volume of transactions simultaneously.
With further advancements in blockchain technology, scalability has improved, and it has created opportunities for faster transaction processing and high throughput.
This means that organizations can share data with numerous partners concurrently, ensuring efficient and rapid data exchange
By using consensus mechanisms, efficient data verification, streamlined data access, and scalability, blockchain helps organizations with lightning-fast transactions when sharing data.