Storing database and registries using blockchain technology to improve data management process

Blockchain is one of the most revolutionary technologies that has impacted the business world in the past decade. Along with cloud computing, artificial intelligence (AI) and robotic process automation (RPA), blockchain is transforming business operations and challenging traditional practices around the world. For those considering expanding their business, blockchain may hold great promise.

Much of the appeal comes from the unique qualities of the technology. A blockchain is a series of blocks, each with a cryptographic hash of the previous block, linking them into a chain. Each block contains a time stamp and transactional data. The blockchain cannot be hacked except with the consent of the network. This means that it is completely safe and cannot be changed. Blockchain is also unique in that it is completely decentralized, so there is no single body regulating its use. Blockchain networks can be public or private. The latter can only be joined with the permission of the network.

Here are the 5 main data management benefits that blockchain provides:

• Data security

Given the high number of data breaches in recent years, we all have good reasons to be concerned about the misuse of our personal data. Every year, as a result of hacker attacks, the personal data of millions of people are leaked into the network. This problem applies not only to large businesses, attacks on small businesses are no less frequent.

While common security methods such as encryption are useful in combating data leaks, they cannot provide complete protection. There are many cases when even the systems of organizations with the highest security level have been compromised. However, blockchain technology can offer great guarantees against data leakage.

• Data quality

The information in the blockchain is stored on different nodes. Before any data can be added to another block, it must be analyzed and rechecked. This process provides an additional layer of verification.

Smart contracts enforce the terms of an agreement prior to execution. As with other aspects of the blockchain, all transactions are recorded and cannot be changed. This means that trusted and secure transactions or agreements can be conducted between anonymous parties without the need for an enforcement mechanism, legal system or central authority.

• Traceability of data

Traceability of data is how easily their records can be tracked in terms of history, location or application. Blockchain has a number of qualities that can improve traceability. Since it is linear, the historical chain of events can be clearly traced. An example is the use of blockchain by Everledger in the diamond supply chain. This industry has been known to attract fraudsters for a long time. Blockchain technology has also been implemented by Walmart in partnership with IBM to improve efficiency and reduce health risks in the food supply chain.

• Real-time data analysis

Performing real-time data analysis and tracking changes as they occur is a great benefit for any organization with assets. It is one of the most effective fraud protection in the data-driven industry. Such data analysis was not possible until relatively recently and can help mitigate these vulnerabilities.

Because blockchain is distributed and transparent in nature, businesses can spot any violations as they arise and can be viewed in spreadsheets. Blockchain technology also allows you to work with the same datasets at the same time.

In addition to improving security, real-time data analysis can help organizations in many ways. This includes more efficient use of resources and better matching of supply and demand. It can also be used to analyze and generate clearer forecasts, and to maintain high profitability.

• Data exchange

Governments and large organizations often collect vast amounts of data about individuals and companies. But since the data is stored in disparate departments and agencies, this is not as efficient as it could be. In the public sector, this means that different departments will not have full access to information about individuals, since they do not have the necessary permissions. This can lead to the fact that a significant amount of time will be spent trying to track information from other government agencies.

This could be handled through a central repository of information from which information could be exchanged between different agencies and departments. But the issue is security, as a large amount of sensitive data stored in one place can be a likely target for cyberattacks.

This is another area where blockchain technology can provide a solution. The decentralized nature of blockchain makes it easy to share data between organizations that can control who can access. Information can be stored in a blockchain database that individuals and companies can access through the internet for authorized access. Individuals can grant an organization the right to read or edit certain fields, and can also share certain information. An organization can be granted permission to write data, but the ultimate control remains with the user.

Blockchain technology is finding more and more applications. Dozens, if not hundreds, of new decentralized applications appear literally every day. Thanks to its many stakeholders in this area, blockchain is rapidly integrating into all areas of our lives.

If you haven’t yet considered the potential of this truly revolutionary technology, do it with AVADA-MEDIA. Contact us to learn more about our development experience in this area.