As businesses and companies strive for betterment, it means that changes constantly have to be made to either keep with the times, or to simply get ahead. With the implementation of Blockchain in current industries, it is obvious that blockchain has had an effect on business models and existing infrastructure.
Basically, blockchain technology provides and alternative way for authenticating assets and therefore, can be regarded as an another choice for any centralized exchange system that relies on a single institution (like a central bank or the stock exchange)- due to the data security, transparency, anti-tampering and anti-forging. Therefore, it can easily be applied to a lot of business activities that require an exchange of data and some form of security.
So, what is a business model exactly? To put it simply, it is a tool that helps to plan for the successful operation of a business, while identifying sources of revenue, intended customer base and details of financing.
It is important to bear in mind what drives a business model, and essentially it is the combination of technology advancements as well as customer engagement. With each new technological advancement, it is important to continue to work closely with customers and provide them with not only impeccable service but also keeping up with efficiency.
Now, where does blockchain fit into all of this? Well, even though the primary use of blockchain up till this point has been in cryptocurrencies, blockchain technology reaches far beyond just bitcoin. For example, in any transaction that involves authentication, like with luxury products and pharmaceuticals, it proves to be very useful. But back to the original use of blockchain, main industry professionals think that its future in digital payments is bright, as not only is there a considerable rise in electronic transactions but it is also far less costly. This bright future can be seen from major financial institutions around the world implementing blockchain- among which are the London Stock Exchange, CME, Deutsche Borse, NYSE and Nasdaq. Nasdaq even introduced Linq, which is “a solution enabling private companies to digitally represent share ownership using blockchain-based technology.” The blockchain technology in this sector could not only improve the efficiency of operations but also help with regulation compliance as well as cross-border payments. It can also really improve business by implementing smart contracts, which are programmable contracts that could enforce themselves upon the occurrence of predefined conditions. This could be particularly useful in the fields where there is a lag in processing documents and settlement speed, as well has back office costs and operational risks. This could be a massive improvement in the business model, because it combines faster customer service with technology advancements.
Blockchain could even be useful in things such as apartment, office space and wifi router hunting, and even have an effect on the music industry. Because it boasts of so many benefits, it has the potential to improve business. And, an improved business means a better working business model.
This means that with more understanding of the sheer amount of applications of blockchain and how they can be further implemented, it can be extremely rewarding for the entrepreneurial ecosystem and spark a new realm of innovation.