What are the benefits of using a blockchain bridge?
Build a token bridge Although still in its formative stages, Blockchain's arrival on the scene is welcome news for today's consumers seeking greater control over their personal data and a more focused view of the companies they do business with. While many still think of Blockchain as primarily an enabler of cryptocurrencies, basically a new form of payment, its potential for the customer goes beyond its monetary conveniences.
These blocks are locked using cryptographic algorithms and create private keys that grant access only to those with the proper permissions. Each block is time stamped, sealed and linked to the preceding blocks, forming an interlocking chain. In a nutshell, a blockchain is just a ledger that records the interactions of two parties whose identities have been verified with each other, allowing each to track the transfer and ownership of assets and data. It's amazing that a concept as simple as being able to securely lock a record and link it to other records can provide such a transformative benefit.
Simplifies transactions by directly linking the customer and the company:
Offers transactional transparency that allows greater trust between the parties
Of great interest to today's hyper-connected, self-sufficient customers is Blockchain's ability to shift control of data from institutions to the blocks themselves. Since the data of each transaction is stored directly within the Blockchain, instead of being managed by one of the parties involved or by an intermediary third party, a level and objective playing field is created, thus promoting mutual trust.
To achieve this, Blockchain uses distributed ledger technology , which eliminates the need for private, centrally managed databases in favor of a shared ledger distribution on a peer-to-peer network. Build a cross chain bridge Every full node has a copy of the blockchain, so the information is impossible to tamper with, quickly verifiable, and readily available. Neither party has an advantage, and all transactions become transparent. In short, customers will no longer need to trust a company's word: the data will speak for itself, without manipulation or extra spin.
The dawn of the digital wallet :
The introduction of the General Data Protection Law (GDPR) has highlighted the need for companies to respect their customers' right to privacy, and Blockchain could prove very useful in this regard. If ledger technology, distributed at the core of Blockchain, were to eventually replace today's centralized structure for mediating online transactions, customers would benefit from greater control over their personal data. through the introduction of digital wallets.
Serving as a gateway to all of an individual's transactions, such wallets would contain a repository of each person's data and allow them to manage and distribute their information as they see fit, rather than relying on the judgment of outside vendors and corporate entities. who control their own database silos. This would allow people to only grant access to their private data and preferences to the parties they transact with, resulting in a more secure and personalized experience.
Additionally, digital wallets would also include non-financial data, allowing users to quickly share their information with organizations and institutions seeking proof of identity before providing services. This would greatly increase the ease and efficiency of applying for a passport, driver's license, car loan or mortgage, as well as sharing private information such as hospital and educational records and employment history. Over time, digital wallets may even include the management of, and access to, all the data a user creates in social media and online purchase records. Transparency leads to trust. With access to information readily available to today's social media-savvy consumers, Companies looking to build trusted brands must show a willingness to share their business processes and intentions with today's hyperconnected customers.
Forward-thinking Corporate Social Responsibility programs are tapping into consumer curiosity by working hard to promote a standard of honesty and global responsibility, and the real-time transparency that its distributed accounting structure allows makes Blockchain the perfect tool to achieve such openness. By providing keys to their Blockchains in the form of easily scannable QR codes on their products, distributed ledger technology solutions have the ability to share the entire lifecycle of a product with interested customers.
As an example, the French supermarket chain Carrefour implemented such a process for its chicken sales. Interested consumers can use their smartphones to quickly access information from breeder to butcher on supermarket shelves, confident in the validity of each step thanks to the unalterable data and time stamps that result from the database.
Blockchain decentralized data. Buyers can then base their selections on data on where the chickens originated, what they ate and whether they received antibiotics. In this way, consumers know what to expect from their purchases because there is a transparent and secure record on each transaction throughout the entire supply chain.
The benefits of Blockchain to a company's bottom line are obvious: its low-cost peer-to-peer structure eliminates the additional expense of time-consuming database management, monitoring, and storage, without the need for investment. additions in cloud infrastructure.
But its real value lies in enabling companies to prove themselves to modern customers reluctant to put their faith in large organizations. By putting their cards on the table and promoting personal control of private data, savvy businesses can use Blockchain foundations to build a bridge of trust between themselves and today's hyper-connected, well-informed and skeptical customers. After all, mutual trust is the key to any long-term relationship.