3 Big Ways Blockchain Helps In Preventing Fraud

Let’s face it – blockchain is one of the most emerging technologies in the 21st century. It was originally developed to prevent fraud in the digital currency exchanges – but was later on discovered as a ‘mind-blowing’ technology that serves endless protective and even disruptive use cases in many industries.

However, if we focus on blockchain in its full light, we will see that it is designed to prevent and combat fraud in the best way possible – cutting the “middle man” altogether. Below are the three best ways in which blockchain does the following.

Smart Contracts As The New Technology Putting Escrow To Shade

The first way in which blockchain helps combating fraud is the smart contract technology. The use of smart contracts lets sellers of anything combat fraud with blockchain technology. Wondering how?

It’s simple – smart contracts allow both the buyer and the seller to create “if/then” scenarios in the contracts in which one step of the process won’t be fulfilled until the one before it has been verified as complete. Goodbye Escrow, right?

A Smarter & Tighter Supply Chain

The second way in which blockchain prevents fraud is the supply chain. In a global economy that is massive nowadays, blockchain narrows things down – and ensures that every label and every statement behind the label stays correct.

Goodbye, Identity Fraud

According to research, identity fraud cost consumers more than $16 billion last year alone – not to mention the headaches and sleepless nights for many. Blockchain makes a lot of things better in this view – introducing the more personalized and more secure digital IDs in a new generation.

The development would be a true game-changer on many levels – combating fraud with a ledger that is constantly reconciled – and one that can only be updated when verified by both parties of users.

All in all, blockchain is a new and emerging technology that can be used in every industry and in many different scenarios. The long and short of it is that it can serve as an objective that is trustworthy, a third-party mediator in any interaction, deal or partnership that you can imagine.

In the end, blockchain is designed to ensure trust and transparency – even among those who don’t trust each other.