5 Things Enterprises Need to Know About Blockchain Right Now
Blockchain technology is changing the way we do business. Stay in the know to reap the benefits.
This is a guest post by Megan Doyle, of Linum Labs. The views and opinions expressed in this blog do not necessarily reflect those of the PolySwarm organization nor is this considered professional advice.
We’re in the age of revolutionary change and blockchain is the newest technology set to change the way we live and do business.
Things we once thought impossible are a part of our current reality. We now have the knowledge and the tools to bring about meaningful development as well as the resources to improve efficiency of traditional operations: remember that Bitcoin was first developed in 2009 — yet it wasn’t until 2017 that the underlying technology was truly embraced and is now being developed.
The evolution of blockchain is now fundamentally altering the way businesses operate and deliver value to customers and will continue to do so:
“If you think about the web, the web has been an incredible development platform, and everything today is developed on the web. In the future, everything is going to be developed with the blockchain in mind.” — William Mougayar
Though initially developed as the underlying technology for exchanging cryptocurrencies without the need of an intermediary, we now know blockchain technology provides an array of revolutionary benefits. This has given businesses the opportunity to transform the way they address various business and organizational problems. If you’re ready to consider how blockchain can improve your business, here are five things things you need to know right now.
#1: Blockchain Empowers Customers and Users Through Self-Sovereignty
We, the people, want to be in control of our own information, and with blockchain technology — we can be. That means that we get to decide what information we would like to present, how much data we would like to display and to whom we would like to share it with. The choice is ours. Blockchain technology enables us to take back control of what is essentially our right, our identity, both online and off.
Large companies store huge quantities of our personal data and profit from it in a way that doesn’t always benefit the people. Think Equifax. Unauthorized third parties gained access to one of Equifax’s portals, where personal information of more than 145 million consumers was compromised. That data included, among other things, social security numbers, birth dates and driver’s license numbers.
With no central point to be exploited, blockchain technology ensures that the system is protected from cyberattacks and fraud. Blockchain safeguards the privacy of its users through pseudonymity since only the transacting addresses are shown. This empowers users through self-sovereignty and mirrors the way identity works in real life.
Take uPort for example. uPort returns ownership of identity back to the individual, with an open identity system that allows users to register their own identity on Ethereum, send and request credentials, sign transactions, and securely manage keys and data.
Take away: It’s time for companies and multinationals to shift the power of data management back to individual users. More so, industries can go one step further and utilise blockchain technology to protect their clients/customers personal details.
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#2: An Open-Source and Decentralized System Encourages Honesty With Customers
One of the most unique and profoundly phenomenal aspects of blockchain technology is that it’s open source. It is designed to be publicly accessible. Industries are advancing towards implementing systems that are built ‘by the people for the people’ and John Marcante, CIO of Vanguard, believes companies that want to be successful need to pay attention:
“Technology has driven this shift, and companies that want to succeed must understand how to merge technology with strategy.”
Organizations that promote open-source software share their business practices freely, publish information transparently, and are able to empower and benefit customers through an honest approach. With the adoption of this principle and strategy, there will need to come a change in leadership, creative thinking and encouragement of innovation and new business models.
Take away: Industries who encourage blockchain, and open source benefits of this technology, are set up to achieve greater results.
#3: Blockchain Promotes Trustlessness and Transparency
Trust is, and has always been, the fundamental aspect upon which we make our decisions. Trust plays a vital part in the way we live our lives, make financial decisions, connect with others, and interact with businesses. One of the problems faced by consumers is that they don’t know who they can or cannot trust.
Blockchains promote trustlessness and transparency. All transactions on a blockchain are cryptographically secured and provide integrity. As blockchains are digital, decentralized ledgers, every user (computer/node) on the system can see all the activity on the blockchain. This allows the system to be transparent and establish trust — because there’s no one to break or abuse that trust.
Take away: Trustlessness gives power back to your customers. They’re in the driver’s seat, not worrying about whether they can trust you with their information or not, which is a benefit to your business. For example, this might lead to more sales for a retail company because they aren’t worried about what will happen with their personal information or credit card number after making a purchase.
#4: There’s Potential for Quicker, More Cost-Efficient Processes and Transactions
Organizations set a sense of urgency for employees to perform tasks quickly and sufficiently. With blockchain technology, you’re able to be more efficient in a wide variety of ways:
Transactions: Without an intermediary, you can process payments and fees quickly and easily. Thanks to smart contracts, built on Ethereum, funds are triggered to release automatically when the requirements of the contract has been satisfied.
Costs: Without having to pay intermediaries, like a bank, you reduce the amount of fees that need to be paid.
Product tracking: Blockchain is already being used in shipping, manufacturing and supply chain management. With this technology, all products or packages can be tracked from origin to end point, without employees needing to do the work.
Take away: Your business can be faster, safer and more efficient with blockchain.
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#5: Blockchain Is Not Always a Necessary for Database Management
Yes, blockchain technology is at the forefront of revolutionising the way we interact with others and could be relevant for many businesses. Yet, there’s often confusion about the difference between blockchain technology and a database.
A database can be defined as, “an electronic system that allows data to be easily accessed, manipulated and updated,” according to Techopedia. Anybody who has the relevant authority to access a database, has the potential to corrupt or destroy the data. A database is reliant on it’s security infrastructure to keep the information secure.
A database is not the same thing as blockchain. Blockchain technology makes decentralized data storage possible, where each participant (nodes/computers) maintains and updates new entries within the blockchain database. This is the public ledger that most associate with blockchain.
The difference is decentralized control. In many cases, blockchain is needed where there’s an assumed lack of trust between two parties. The value of decentralized control is that it eliminates the risks of centralized control, while providing transparency between everyone who has access to the database or platform.
Ready for Blockchain?
Distributed blockchain technology has the potential to change industries, re-build trust between customers and businesses, and eliminate inefficiencies that increase overhead and reduce profit. You may not need blockchain technology for your business just yet, but staying up to date with this technology and it’s rapid evolution will only benefit you in the end.
Bio: Megan Doyle is the Marketing Manager for Linum Labs, a software studio for blockchain architecture with a focus on blockchain development, training, consulting and community. She is a blockchain enthusiast and storyteller. Check out the Linum Labs Blog and connect with the company on LinkedIn.
Linum Labs runs a variety of Meetups that range from more casual meetups to large-scale presentations with some of the industry’s leading experts in the blockchain space. The aim of these meetups is to provide an open platform for people to learn more about Ethereum & Blockchain, share ideas, ask questions, talk about projects and meet people within the industry.
