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China’s blockchain technology saves companies billions of dollars in fraud protection

The potential for cost savings for companies

Over the years, companies operating in various fields of health, insurance and finance have suffered billions of dollars due to unforeseen cyber attacks and security breaches. According to related organizations, fraudulent activities have cost companies more than $ 6.3 billion.
Dai and Wang found that companies have worked hard in the past to combat complex cyberattacks and security breaches caused by improper encryption methods and security measures, but have failed to establish tamper-proof databases and accounts in To maintain the security of sensitive information.
Professors at Southwestern University of Finance and Economics, in an article entitled “Blockchain: A New Solution to Prevent Fraud,” argued that Bitcoin-owned Blockchainchain technology could be used as the basic infrastructure for an accounting information system. And companies can use it to protect data in a transparent, efficient and unchangeable ecosystem.

China's blockchain technology saves companies billions of dollars in fraud protection

The solution is decentralization

The solution is to decentralize to avoid a single point of failure that disrupts the operation of the entire system if it occurs. The interactive authentication process is performed by all computers, instead of a central management. Computers collectively monitor system performance and prevent information from being tampered with in the ledger. This blockchain feature prevents accounting records from being changed or deleted.

Blockchainchain and smart contracts

Blockchain technology in Bitcoin has been developed specifically for working in the digital currency network. Some companies, such as RSK Labs, are developing platforms to deploy smart contracts over the Bitcoin protocol. However, at this stage it is better to use smart contract to automate data transfer and manage big data set by Ethereum platform.

Source : Iran Blockchaink Laboratory


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