How To Use Blockchain To Improve Your Data Management

Posted: Oct 8 2019, 10:18pm CDT | by , in How To


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How to use blockchain to improve your data management

Living in the Age of Data, you’re surely worried about the information your business manages on a daily basis. Your records could include personal information about your customers and employees, data about your products and services, or details about your future business decisions. Managing all that in your everyday tasks can be challenging, as you have to balance the need for access with privacy and security concerns.

Fortunately, one in-vogue technology can help you with that. We’re talking about blockchain, an open and distributed ledger that links encrypted blocks to permanently record transactions between two parties. This technology has gone beyond its initial purpose (to power cryptocurrencies) and into several uses, including data management. That’s why so many companies are resorting to blockchain consulting to start leveraging blockchain’s benefits.

If you aren’t sure what those benefits are and how they can work in your favor, read on!

Blockchain’s main value

Blockchain’s biggest innovation has to be its decentralized nature. That implies that the network of nodes doesn’t have a central actor that controls whether the transactions and changes made in the blockchain are legitimate or not. This, in turn, means that all the computers that are connected to the network are the ones that verify everything that happens in the blockchain, creating an automatic consensus about those changes.

Combining that centralized nature with the encryption that takes place in every block of the network is the strongest feature of any blockchain. That’s because both of those aspects ensure that everything that happens in the network can’t be tampered with and it’s protected against unauthorized access. In other words, for someone to gain access and manipulate a blockchain’s records, it’d take the hacking of all the nodes that take part in the chain before being detected. As you can expect, that’s close to impossible.

What does that mean for your business

This feature is highly important for businesses, institutions, and organizations of all kinds that handle data on a daily basis. That’s because it provides the base for several benefits that can serve to improve data management, regardless of the industry you work on. Some of the most important benefits include:

  • Inviolable records: all changes that occur to the ledger can be reconstructed by all of the blockchain’s users. Thus, it’s easy to check the validity of any change by cross-checking the available information (what was the change, when and where it took place) with the rest of the network. After a quick reconstruction, keeping or discarding the change in accordance with its validity is very simple.

  • Digital assets and transfer: you’ve surely found that one frustrating part of managing data is that there is still a need to have paper documents to support the information about transactions and asset ownership. With blockchain, it’s possible to forget about the paper trail and start using a digital infrastructure to record assets, ownership and transactions regarding deeds, bill of sales, and similar documents. Blockchain development services could easily tailor-make a network that takes care of your needs when it comes to assets.

  • Smart contracts: as all blockchain consulting services can attest, one of the biggest promises blockchain is bringing to the table are smart contracts. By storing the information about contracts in digital codes, you can get a quicker and safer way to enforce it. That’s because all of the terms of an agreement can be described in the ledger so when certain conditions are met, a transaction automatically takes place. That’s a great use to hire employees, be them permanent or temporary, as it provides a secure environment that automatically executes the terms on the contract and that can’t be tampered with by any of the parties involved.

  • Data protection: you know that, despite your best efforts, your data is always in danger of falling into the hands of malicious actors. Though there’s no 100% fool-proof method to prevent that, working with a blockchain development company to create your own network is the closest you can be. Basing your data transaction system on the encrypted blocks of the blockchain can make it harder for hackers to get hold of your data. That’s because of the network’s underlying use of cryptographic hashes in each block, which contains the history of all records to make it easier to detect and prevent unauthorized changes.

Taking advantage of blockchain

Using data silos to store your business data isn’t a good idea anymore. By creating a network with the help of blockchain development services, you can leverage all of the benefits above to improve the way you handle sensitive information across your company. Having such blockchain in place would provide access to relevant data to all of the people in your business in an encrypted and secure environment that would be accessible through the Internet.

The use of smart contracts could govern your relationship with your employees and customers. Whenever a change in one of the predefined terms occurs, the blockchain could easily execute the contract, thus, for instance, terminating the agreement, suspending payments, or promoting the person a new kind of agreement.

The reduction of unauthorized accesses and data manipulation is also a key factor in the enhancement of your data management. All of the information you could have stored in the ledger can’t be tampered with or deleted, so you’d have secure and permanent records on everyone you did business with.

Of course, developing such a network comes with its set of challenges. Probably the most important one is how to integrate the blockchain to your current IT infrastructure. That doesn’t just mean that it’ll be hard to implement the blockchain itself with the rest of your equipment but also to train your people to work along with it.

Additionally, finding the proper blockchain development partner to work with on your network can be tricky. Since it’s such a new technology, providers are mostly startups that don’t have an ensured staying power and guarantee they’ll be around enough to provide you with needed support. That’s why you need to get the help of a reputable blockchain consulting firm that can aid you with the network’s deployment and guide you after that happens.

In conclusion, blockchain can surely help you with your data management tasks while also providing you with a higher level of privacy and security. It’s true that the technology itself still has room to grow and mature, so there’ll be some hit and misses along the way. However, the benefits are so promising and the potential is so huge that you’d be investing in an innovative solution that can pave the way to growth for your business and a new work culture that can better prepare you for the world to come.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
Luigi can be contacted directly at ml[@]




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