Part II: Why are large companies employing blockchain?

“There won’t ever be a single powerful entity that controls the system or controls gatekeeping into the system the way blockchain does,” Joe Lubin, co-founder of Ethereum

Hi Intrachain Community,

In last week’s blog post, I have elaborated on the substantial use of blockchain. Now that we have talked about what use cases there are for blockchain, I want to go more deeply into the topic of why large companies are employing blockchain.

The benefits and pitfalls of cryptocurrency have been excessively discussed lately, but the blockchain technology that underlies these currencies took the main stage. And it makes sense because blockchain is a must-have in and of itself for creating competitive advantage.

Many startups already specialize in blockchain technology, but blockchain is also of great importance for large companies. Thus, an increasing number of established businesses are step by step seeing that blockchain is their answer to adapting to the future economic model. Previous methods of storing data and conducting transactions are outdated compared to blockchain technology, so this adoption is natural.

Whatever industry you look at, blockchain’s potential is undeniable. For instance, some companies, find blockchain-based security applications are enticing. Other companies are simply excited about blockchain’s potential for helping them create transparent marketplaces for their customers. In fact, research shows that the companies which would most benefit from blockchain are those:

• with a need for transparency and clarity in transactions
• a current dependence on paper-based legacy storage systems
• a high volume of transmitted information.

Thus, whatever the motive, the immutable and transparent nature of the blockchain is what has so many people racing to incorporate it into their IT strategies. In fact, the demand for the technology, best known for supporting bitcoin, is growing so much that it will be one of the largest users of capacity next year at about 60 data centers that International Business Machines Corp. rents out to other companies around the globe. IBM was actually one of the first corporations to see blockchain’s promise, contributing code to an open-source effort and encouraging startups to try the technology on its cloud for free.

The fact that a 106-year-old company like IBM is going all in on blockchain shows just how far the digital ledger has come since its early days. In fact, the market for blockchain-related products and services will reach $7.7 billion in 2022, up from $242 million last year, according to researcher Markets & Markets.

Summarizing it can be said, that all that is creating new opportunities not only for startups but also for some of the old warships of the technology world, meaning companies like IBM and Microsoft Corp. that are making the transition to cloud services. Furthermore, as a decentralized platform for innovation, blockchain technology, over time, will revolutionize virtually every industry. I believe that it is important for business owners to start incorporating blockchain into their strategies in order to not fall behind. First movers will have the distinct advantage of figuring out how blockchain can get their business to the next level earlier than their competition does.

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I will keep you posted on exciting angles of the Blockchain Industry. In the meantime, feel free to contact me on Telegram to chat with me and my Co-Founders.