Data authenticity is by all means one of the major factors that retail should sustain, and hence, data security is a prime focus here. Use of a single database storage or a third-party server often implies the risk of data loss or compromising as it conveys consumer banking and personal information. And here blockchain brings to the table its distributed ledger technology when all information is shared within the retailer’s authorized working stations. In blockchain, data can be programmed to be automatically verified for compliance; each important operation requires approval by all authorized participants. As a result, data cannot be changed or compromised, each action can be traced back to the origin, and information cannot be lost since it is duplicated on multiple machines.
Regardless of the shift to digital, complicated, multi-party provide chains are nonetheless closely depending on paper-based transactions to deal with a number of handoffs as items make their manner from producers to warehouses to distributors to finish shoppers.
Blockchains present a method for quite a few events to agree on the contents of a shared ledger of transactions, which has the potential to convey huge efficiencies to this course of.
Despite the hoopla surrounding blockchain-based investments, the goal of the technology is quite simple: to provide a secure record of transactions. Blockchains are basically super-secure ledgers that store encrypted sets of letters and numbers known as hashes in a chain of other transactions. The transactions are validated by all other computers involved with the chain, are time-stamped, and are virtually incorruptible due to the fact that the hashes from one block are contained in the previous block, which is linked to the block before it, and so on.
Those characteristics certainly make blockchain ideal for financial transactions, and banks could employ the system to bring greater speed, security and transparency to their operations. But banks have been slow to take up blockchain — instead, the technology is emerging in other, somewhat surprising industries.