Distributed ledger technology and blockchain

benefits

The control of all its information and transactions is given to the users that

promote transparency in a distributed ledger. They are processed 24/ 7 , and

the transaction time is minimized to minutes, saving businesses billions of

rupees; also, the technology facilitates increased back-office efficiency and

automation.

As a blockchain cuts down on operational inefficiencies, ultimately saving

money, it is useful for financial transactions.

The decentralized nature and the fact that the ledgers are immutable provide

greater security.

Blockchain technology creates a secure and efficient log of sensitive

activity that is tamper-proof, which may include money transfers

internationally to the records of stockholders.

To avoid time-consuming, paper-heavy, often bureaucratic, and expensive

processes, the company’s financial processes are upgraded to be run by a

clearing house offering a secure, digital alternative to processes.

The data gets etched on the network when you write it to a blockchain. You

gain an accurate and immutable audit trail that is useful for financial audits

enabled by a series of transactions over time. Double-entry bookkeeping

has the benefit of storing the data in a place where no single entity owns or

controls it, and no one can change what is already written, which ultimately

leads to fewer chances of errors or fraud.

Without any centralized control, a distributed ledger is a database of

transactions shared and synchronized across multiple computer sites and

locations.

Each involved party owning an identical copy of the record is automatically

updated as soon as any additions are made.

A continuously growing list of records that are called blocks and are linked

and secured using a cryptographic chain of the block is a blockchain.

Contained in each block is a cryptographic hash of the previous block, a

timestamp, and transaction data.

A blockchain is a distributed data store where copies of its ledger are

created and stored on many computers (nodes). A record must be validated