Blockchain part 3 of 6 – What are the Benefits of Blockchain?

Blockchain is a virtual public ledger that records transactions and tracks assets in a secure and transparent manner. Blockchain can provide many benefits for a business including:
  1. Cost savings – implementing Blockchain can achieve a variety of cost savings:
  • Intermediaries are reduced as participants exchange items directly.
  • As the network is self-policed by the network participants there is significantly less need for oversight.
  1. Tighter Security – a permissioned network reduces the risk of fraud, tampering and cybercrime. It should be noted that not all Blockchains are built for business, so some Blockchains are permissioned while some are not. A permissioned Blockchain is vital for a business as it offers greater auditability and improves efficiency.
  2. Time savings – Without the need for verification from a central authority, transaction settlement is faster and transaction times are significantly reduced.
Blockchain can also enhance the trust across a business network, as every transaction in the network builds on the previous one, any corruption or fraudulent behaviour is readily apparent. This trust eliminates the need for third party supervision, and enables greater access for auditors and regulators to review relevant transactions and verify compliance.

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie To keep in touch, connect with our friendly team on LinkedIn.

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