Blockchain and Businesses

Blockchain technology is here to stay. Well, there’s no doubt about it. While the technology is so beneficial, it seems that the term blockchain is mostly connected with tech companies and not by non-tech businesses and the general public.

Although blockchain may be new to us, there are many benefits to running a decentralized ecosystem.

Blockchain: connecting the world to the future of finance

Since time immemorial, we have piggybacked on individual third parties to help us in doing transactions. The issue with this is that if we depend on intermediaries and they end up being corrupt, we would also face the consequences.

The expertise helps digital information to be distributed across the ledger rather than being copied. Initially intended for bitcoin, blockchain is becoming the backbone of the modern day internet.

The formal definition goes like this,

“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” Don & Alex Tapscott, authors Blockchain Revolution (2016)

It would mean that new information once written on to the ledger cannot be edited or changed.

Here’s a simple version;

Blockchain gives us a way to do online transactions without the use of an intermediary. Transaction history will be in the blockchain through sealing pages of operations with the use of key codes.

So the blockchain allows us to transfer financial assets without the need for a regulatory, i.e., a bank. But this should not be taken in a wrong way, Businesses use Blockchain for better privacy, safety and surface, not for eliminating paper trails.

Should a business use Blockchain?

There are critics for blockchain, and this pack has some big names. They argue that the technology is its infancy and needs polishing.

The underlying fact is whether you want to adopt a technology that has many benefits, but is in its infancy to some;

Our Answer to this Argument is yes; Business should use blockchain.

If we eliminate the third party, exchanges could become a lot quicker, and companies could avoid spending time on paperwork. It saves a considerable amount of time for both the sender and the receiver. The business also benefits from reduced transaction costs.

Another advantage would be information security. We all know that banks are prone to cyber-attacks often and this makes a lot of companies vulnerable to cyber-theft. Blockchain gives the control back to the institution initiating the transaction and not the third party.

Let’s take a look at some of the industrial applications and understand Blockchain is better for businesses.

Making business digitally competent

As businesses grow, the exchange of goods and services increase, in such a situation, recording this transaction become much more complicated. Third party reliance means that we would be distributing transactional information on a system that is prone to fraud, errors, and misinterpretations.

Distributed systems like the blockchain is a secure network that ensures data security. When coupled with technologies like cloud computing, Blockchain gives companies the ability to track and keep updated with data.

Blockchain also helps companies to use a connected ecosystem where the process is secured, and the information is stored in one single or related system rather than manual backups thus driving the potential for growth.

Increasing security

Blockchain networks are very secure. They are consensus driven. They work in a way that all your transactional information is securely kept. For this to happen, blockchain allows users to seal pages that contain transactional information. Security of such pages will be ensured with a key code. They can also put a leash on the money they spend every year on data security as well.

Furthermore, Blockchain work on a network of connected computers. So hackers cannot go into the system and manipulate transactions. Therefore, a single entity cannot take control of information on the blockchain.

The blockchain is also the front-runner that allows for decentralized digital ownership Which would help companies and consumers to keep hold of their assets.

Digital Manufacturing

As we gradually move to a digital supply chain. Innovations such as additive manufacturing and CNC machining are changing the way business manufacture and distribute their products. This has led to the rise of a decentralized manufacturing model.

By leveraging on the blockchain, a decentralized manufacturing model passes through companies, suppliers networks and authorized work partners. By using the blockchain, the manufacturing design stays consistent throughout the supply chain ensuring that parts are not modified, and quality is not compromised when a spare part is made.

Transportation Mobility

Blockchain could revolutionise the way core transportation works. Blockchain would be beneficial for both the core mobility providers as well as the end user.

There are several applications for blockchain in transportation mobility. The primary would be vehicle identification and tracking. By storing vehicle information on a decentralized chain, owners could not tamper with data and could eliminate malpractices like odometer tampering.

Further, the blockchain could integrate with ride-sharing application to better protect consumer information but also give the companies a secure hold on their fleet.

Blockchain can also be used for revolutionary insurance practices that charge based on vehicle usage rather than time periods. Taxes can also work with the same principle. The blockchain could also automate machine payments.

Cross-platform information Retrieval

Every year companies spend millions of dollars and tons of time to get KYC details. While their collection is still tricky, there is a solution for companies to reduce time and money spent.

Companies could leverage on one single company for data collection, and they could rely on the information collected by this company for usage.

This means that there will be an institution entering data into the blockchain and several other companies can rely on this data, rather can collecting everything again.

Instant Global payments

The blockchain can be used for fast and secure global payments.

While the technology was brittle before, several new enterprises have brought robust products into the market which provides instant transaction with both digital and fiat currency.

By relying on a fast blockchain network, companies could send financial assets to their preferred global destination instantly. This only requires the recipient’s phone number or Email ID.

If institutions are still worried about a regulator for transactions, several regulated crypto banks are emerging that allows customers to send crypto and non-crypto payments securely with an added benefit of reducing volatility.

Benefits to Financial Institutions

Blockchain products mostly work in tandem with support for third parties; this means that both developers and other companies could use the blockchain technology of one company and design unique products to solve their specific problems.

Such benefits can be very beneficial for financial institutions. For example, if an entity wants to create a secure payment gateway for its commercial application, it could use integrate API with already existing platforms and build their products quickly and securely.

The application goes beyond this if a bank wants to create its form of digital currency it can do so by partnering up with or using technology from an existing coin which they deem useful.

Benefits for small business owners and startups

Following the same application of banks, small business owners who don’t have many resources to build their blockchain tech, they can now rely on existing technology and tools to produce an enterprise level product at a fraction of the cost.

This would mean that owners would get new products having the benefits of their technology partner as well as the benefits which are incorporated by them.

Such solutions also ensure that business owners could give their products to the customer at a reduced price. So the benefits are holistic.

Conclusion

Should you or should you not use blockchain?

Even if you do not see the application of blockchain in your current business operations, it is clear that businesses would have to adopt blockchain once it becomes an internet standard.

As more and more companies change their stance on the blockchain environment, we could see more and more developments. This change is happening now with companies like IBM bringing their superior know-how into blockchain.

If it’s not now, then certainly in the future your business should leverage on blockchain to improve growth and also to combine all your connected ecosystems.

Businesses can start looking at industry related blockchain offerings a test their reliability and consistency now so that if they transition, they would know the benefits and apprehensions beforehand.

Businesses can use blockchain to boost revenue; but you need to know the real world.