Reshaping the Business value with Blockchain Technology
Unbelievably, blockchain technology has changed our lives forever, thereby, evolving into something much more than what it started. All new concepts go through a process of developing a refined set of advancements along the way; blockchain has been going through this transformation since its debut in the year 2008 by Satoshi Nakamoto to serve as the public transaction ledger of the prominent Cryptocurrency Bitcoin.
This growth is an outcome penetration of Blockchain technology in major sectors that overall brought certainty in the accomplishment of the toughest task that once seemed fad in a way that history will come to see as the time before blockchain, and everything that came after.
In the initial years, the blockchain was merely the technology supporting Bitcoin. That in the beginning produced:-
· Decentralization of currency and financial transactions
· Decentralization of data/information storage using a distributed, decentralized database
· Eliminated the requirement for “trusted” third parties to verify transactions
· Resistance to censorship, immutable, and corruption
Over the years, Blockchain technology found many more application areas because of its unique feature of combining computational processing power through the use of nodes connected to the network which verifies all transactions and secures a public ledger. Further, realizing that blockchain has far more potential besides development of Bitcoin, the same method was used to develop the structure of the internet (known as the internet protocol suite or TCP/IP Stack) and a radical change to the internet observed.
However, the Bitcoin blockchain at the time was not effective enough to fulfill the expectations since the source code did not allow for Turing complete smart contracts. Later this technology was processed to make it program conditional transactions and build Turing complete smart contracts. It gave Bitcoin the ability to emulate human behaviour and the ability to conduct micro-payments, so it can handle small value transactions making it very effective. Let’s have looked over the business value held by the blockchain market via its use cases in industries that have improved the productivity, brought up transparency, and fastened the daily practices.
Reduced Cost
Running a business involves a lot of intermediary costs like logistics, administrative paper trails and a lot of record maintenance cost. Blockchain can be very effective in cutting costs as it makes the supply chain processes more streamlined by cutting out the middleman and banishing means that lower the efficiency and eat profits.
Build up Revenue
The blockchain cuts down the administrative and collaborative barriers, thereby, making way for better business methods which weren’t feasible before the advent of distributed ledgers, henceforth, paving the way for new infrastructure and revenue models.
Connect with billions
Adapting to the blockchain technology can be very effective in setting up new business models with better customer support. In the medical field, where remote patient care and record-keeping was always an issue, with blockchain the records can be synchronized in a better way.
How impactful can be Blockchain Technology?
Besides the parameters mentioned above, let’s specifically look over the impact of blockchain technology over the following sectors:-
Payment
Decentralized payment cuts the requirement of any middlemen and charges that these take (especially in international transactions), and further reduces the administrative efforts, e.g. in the clearing, settlement, or by using smart contracts to execute payment for goods received.
Asset tracking
Bringing up Blockchain technology in the record keeping systems can make use of its permanence feature to mitigate the cost of maintaining an audit trail of data, especially across organizations. E.g., Tracking ownership provenance of assets or controlled items, goods along the supply chain, data in research settings, or financial data for auditing
Data sharing
Another insightful application that can be brought up by the blockchain can be establishing a record keeping system between the firms to exchange data without any further cost for running a 3rd party that maintains current data and its integrity. This can be very helpful in counterfeit / fraud prevention, demand synchronization within a supplier network, or with keeping public records.
Identity management
A blockchain solution could be used to avoid sacking of any information in organizations having to manage user-controlled identities (user accounts) or identity verification (government-issued identification). This helps to bring better grounds for KYC, credit history checks, HR background checks or academic credential verification.
Agriculture
Blockchain can bring transformational change in the agricultural supply chain by easing the transition process from farm to market and providing quick updates about the food safety outbreaks.
Automotive
Besides streamlining the supply chain process in the automotive industry, blockchain can effectively improve ride-sharing platforms, thereby, spurring on the transport revolution.
Insurance
One of the premier applications of Blockchain technology, the Self-executing smart contracts, and the distributed databases can collectively increase efficiency while reducing costs and risk of fraud.
Thus, Blockchain technology is so far one of the sparkling innovations of all times, that can refine the global industry by its quicker, more straightforward, workable and trusted interface. While, most of the leading global organizations have started implementing the Blockchain technology implementations to improve the overall quality of their business outcomes, thereby making it more efficient and sound like never before. Further, organizations which cater to their services in the sectors of finance, insurance, security services & information sharing have do admitted that Blockchain technology has helped their businesses in serving customers in a better way.
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