When you hear the word blockchain, what comes to mind? Bitcoin? Ethereum? It is valid to automatically associate blockchain technology to cryptocurrency, however, the application of this amazing decentralized technology knows no boundary.
Many years ago, the internet took everyone by storm. At first, media outlets and other businesses dismissed the concept of being online, calling it irrelevant, however, the story has changed. The internet facilitates millions of businesses and there is more to come.
In the same way, blockchain technology is set to cause a major paradigm shift. It has been predicted that this system of operation is the next best thing after the internet and many moguls are staking their worth on the success of the technology. Let’s see why.
What is Blockchain Technology?
This is a highly discussed subject, yet for many, it remains an ineffable concept. Blockchain is a ledger with a network of replicated databases which are updated accordingly online and are visible to users in the network. To this end, blockchain networks can be private or public.
Private Blockchain networks work like the intranet where the membership is restricted, while public networks are accessible by everyone. Irrespective of the network you employ, security is guaranteed. This is because otherwise vulnerable intermediaries are eliminated.
Since the information is not stored centrally, it is impossible to corrupt or steal vital data from one source. Before a hacker can perpetrate any form of attack on a block, such criminal needs to hack every ledger in the network (millions of information) at the same time and this is simply impossible.
Core Features of Blockchain Technology
In layman’s terms, it means that the blockchain isn’t just sitting on one computer. There are distributed nodes which characterize the decentralized feature. These distributed nodes constantly get updated as transactions get completed offering you security as well as anonymity.
Authentication of Data
Data can be stored in the blockchain in a variety of formats and the advantage is that the same measure of security is in place across the board. Before data can be accessed, the technology ensures thorough that every user is thoroughly vetted to prevent fraud. One of the ways of doing this is to create public-private key pairs which verify the signatures presented.
How Blockchain Can Help your Business
For newly burgeoning businesses, the problem of raising funds is pervasive. Many business managers have to tackle the problem of raising funds from the appropriate channels. Getting this done in good time can also be a daunting task, however, the advent of blockchain technology is a panacea to these challenges.
By employing the decentralized system of raising funds, the issue of protracted meetings with venture capitalists, going back and forth over your financial institution’s intricacies, and other factors which cause delay are eliminated.
With this technology in place, your business enjoys accelerated growth and you have access to the needed funds which facilitates the speedy execution of your solutions. The privacy and strict adherence to ensuring secure transactions help to make the process as seamless as possible.
Self-executing contracts have existed for a while now and the emergence of blockchain technology has expanded its application. These self-executing programs ensure that the inherent issues with conventional business transactions are avoided.
Employing blockchain technology ensures that there is no downtime with the system, it is also a measure to check fraud and any other means of data corruption. Your contracts are stored securely and it is delivered to recipients based on occurrence in the future.
Another advantage is that with blockchain technology, you are assured of lowered cost of a transaction since you have successfully bypassed the inherently recondite and lengthy procedures associated with traditional financial transactions.
Management of Supply Chain
Every merchandise consumed is a product of several forces, both living and inanimate, and this process involves several parties procuring and providing the needed service. The problem with this is that the usual human inclusion tends to either make the process dilatory or even intractable.
Blockchain technology helps your business adopt a proactive approach rather than a reactive one. You can easily provide digital records which are immutable and immune to falsification. Reducing human interference means the tendency of occurrence of error or bribery is also reduced.
Decentralized Cloud Storage
Businesses and individuals splurge billions of dollars on storage annually. A major disadvantage of this system is that your data is stored in a centralized hub and the server is prone to attack. If this occurs, you risk losing valuable information to hackers who can use the data to defraud you or your clients.
Also, the high cost of centralized storage is discouraging. When you utilize blockchain technology, by employing your fellow user’s extra space, you have the ability to store 30000% more than what you could manage.
Since the stored data is encrypted, access is only granted to people who have the key. Blockchain solution is not only a cheaper alternative, it is also more secure.
Secure Instant Payments
Is your business globally renowned? Do you make international transactions daily? Then you are familiar with the stress of sending and receiving funds. Sometimes, the transactions take days to be effected and this is an encumbrance for many businesses.
A prominent application of blockchain technology is cryptocurrency and this means there are various platforms wherewith secure payments can be made instantly. Customers and staffs alike can now receive their payment in real time and this bolsters your brand credibility.
Smart Device Connection
Certain companies are already teaming up to actualize the idea of connecting devices, gadgets, etc. via blockchain, for secure sharing of data and information. Here, blockchain technology underpins the system, acting as a public ledger for many devices.
With this blockchain technology in place, an autonomous network is created to take care of device-to-device communication, device management, update, making decisions autonomously, etc. The devices can also schedule routine maintenance without causing downtime for the users.
Moving from devices, there are also cost-saving benefits to this technology. By virtue of interconnection, the entire office is well micro-managed, saving appreciable time and cost.
The applications are endless. The same way the internet disrupted every sector available, blockchain technology is set to do the same. A lot of companies are taking advantage of this and are recording astounding gains, why not give it a thought?