How Does Blockchain Technology Help Organizations When Sharing Data?

How Does Blockchain Technology Help Organizations When Sharing Data?

Organizations need to share data among themselves to increase interoperability, cooperation, and efficiency. They have been working on methods that can be used to share data in a way that is secure, reliable, and fast. Blockchain, a relatively new technology, has come up as a solution and has ways using which organizations can share data.  

The numerous features of the blockchain can be effectively utilized for data sharing. First, let’s have a look at what importance data sharing holds and why it needs to be done effectively. 

Importance of Data Sharing in Organizations  

Data sharing within organization and among organizations benefits organizations in the following ways: 

  • Clarity of the Vision: Through data sharing, organizations can align various teams as per their vision. This means that everyone has access to the same set of data and is deriving almost the same context from the data available. This gives those who are working a clear picture of what they have to achieve. 
  • Improved decision-making: When all the departments within an organization have access to data, they can make well-planned decisions rather than relying upon their gut feelings. If data is not shared with all the teams, then some of them have to get it from the other teams which increases the probability of inaccuracy. 
  • Enhanced Productivity: If the data is present with all the teams, they need not waste time seeking the data from other sources and can work directly on that. This also cuts the time needed for data duplication and transfer. 
  • Promotes Innovation: Data sharing increases interoperability within an organization which creates an innovative environment. Different teams can work on the same set of data simultaneously to achieve better results. 
  • Less susceptible to errors: If data is shared with all the departments in an organization, then it crosses the eyes of many people. This increases the probability of error detection if there is any. 

This section has described how important data sharing is. Now in the later sections, we’ll have a look at how data can be shared effectively by utilizing the features offered by Blockchain technology. 

5 Features Explain How Does Blockchain Technology Help Organizations When Sharing Data 

The features that blockchain technology has to offer can be utilized in an effective manner within and across organizations. Let’s see how they make data sharing effective, easy, reliable, and secure. 

Decentralization Eases Data Sharing 

Blockchain follows a distributed ledger system, which means that there is no requirement for a central authority to control the system. Organizations can act as independent nodes and share data among themselves. There is no need to send data to a central authority and then wait for its authorization. This minimizes delays occurring in data sharing and eliminates any third-party requirements. 

Transparency Establishes Trust 

The transparency feature of the blockchain increases trust within an organization. All the teams have access to the same set of data. This cuts off the time required to request and transfer data and also fosters trust. 

Interconnected Data Gives Integrity 

In blockchain, every transaction is connected to the previous ones and is encrypted. This provides both data integrity and security. Every addition to a blockchain is like a block and once a block is added to a chain, it’s very hard and challenging to change the data present within the block. 

Traceability Ensures Reliability 

Each transaction in the blockchain is recorded and traceable. This provides reliability to the data present in the blockchain and makes the auditing easier. Any data present in the chain can be traced back to its origin. 

Smart Contracts and Better Customer Experience 

Smart contracts deal with automating repetitive tasks that are sometimes mundane too. This increases efficiency by cutting out the time to perform these tasks. Smart contracts can be utilized within an organization for data sharing under a specific set of rules. 

In blockchain, the data is encrypted and only a few authorized persons have the access key. Imagine the level of customer trust this gives to your organization. This makes the sharing of sensitive information nearly impossible and in this digital age, where data theft is not uncommon, this can prove to be advantageous for an organization. 

Final Words 

Blockchain technology is relatively new in the market, but it has been able to impact the conventional methodologies followed by organizations for performing tasks. This technology has features that have the capability to increase the operating efficacy of an organization if implemented in a planned way. 

Sharing data is an integral part of any organization and using features of blockchain, this can be achieved effectively. This article has highlighted how those features can be utilized in data sharing and what impact this step will have. If you want to read more such interesting articles, keep following our blog page.  

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