Distributed-ledger technologies are taking the business and tech worlds by storm. You only have to see the boom in cryptocurrencies, particularly Bitcoin, to realize that such technologies are revolutionizing the way we do business and conduct financial transactions. If you’re still a little confused about what this new technology actually is and how it can help, then don’t worry. Think of it simply as an online ledger, where records (like financial transactions) are added – all of which are linked via cryptography. If this technology has a viable application in your industry, you should definitely consider getting in contact with blockchain incubators. This is because there are many great advantages of using a facility that can nurture your ideas and innovation, while blending it with advanced, revolutionary technologies. Let’s check some of them out!
Speed of transactions
Generally, the transaction speeds of blockchain incubators are the fastest, even when compared to public databases. This is because there is no need for frequent cross-points, which require verification and high trust levels. Transactions can be approved seamlessly by all parties involved before it is added to the ledger. Once it is added to the ledger, the transaction cannot be removed or modified.
If the need arises, amendments can be made to your online ledger’s rules and code. These changes can occur quickly and without any hassles if you’re using blockchain incubators. If you were to be doing this in-house, however, or using a public option, changes to the rules of your ledger would be more time-consuming. Essentially, there are more hurdles you would have to cover if you were to change the conditions of the SMART contracts. A smart contract involves a computer-based protocol that ascertains the rules of a digital contract are met, verified and enforced.
More competition for the banking sector
Another great advantage of consulting with blockchain incubators is the growing amount of competition in the banking and financial sector. At the current time, Australia’s banking sector is largely dominated by the “Big Four” financial institutions – Commonwealth Bank, NAB, ANZ and Westpac. However, the emergence of ledger technologies could either present a threat or opportunity to the banks. Should they not embrace the new technology and its advantages, they risk being vulnerable to new financial institutions utilising ledger-based platforms.
From this, more competition can grow in the banking sector, leading to more favourable loaning and lending options for individuals and businesses. Indeed, some banks have begun using ledger technologies as a way of settling transactions! Hence, the growth in blockchain incubators means greater competition for the banks and more favourable financial options for borrowers and lenders.
Enhanced security measures
There are several built-in rules that govern how the ledger is modified. Indeed, the ledger can only be modified by parties that have direct authority – meaning any external involvement is prevented. This enhances the overall security of blockchain incubators. Furthermore, using a public ledger model means there is some way for transactions to be traced. Alternatively, there are ways that you can modify the code so information about the transactions can be masked – albeit, this is generally more efficient if your ledger is overseen by blockchain incubators.
Finally, blockchain incubators are also generally cheaper than utilizing public options. Why? This is because public ledgers often require a lot of processing power and several verification hurdles to uphold security and efficiency, whereas a secluded network can get away with far less verification steps and less convoluted smart contract obligations. This can be attributed to less traffic and lower data load.