How Blockchain can revolutionize your business
Joey van Kuilenburg / 15 January 2019
The word blockchain has gone viral for the last decade, and especially in the financial sector. Despite its significance and wide acceptance of this technology, the majority of the entrepreneurs are yet to comprehend the importance of integrating blockchain technology into their business environment.
Blockchain is unquestionably genius invention in the modern digital era. The Blockchain technology created the backbone of a new type of internet by allowing digital information to be distributed but not copied.
In simple terms, blockchain is a ledger of distributed records of data that is managed by different computers called nodes. Each record of data is stored in the form of blocks which are secured and bound to each other using cryptography forming a chain of data.
Nowadays, Blockchain technology is adopted by every industry, whether it is financial, banking, hospitality, legal, and so on. And don’t forget, it is considered as an industry disrupting technology.
You are probably wondering what is so unique in this and why we are saying that it has industry disrupting technology.
Blockchain passes information from one party to another in an automated and fully secure way. This information is processed as a transaction and is made as a part of a block. This block is circulated and verified in the network. This authenticated block is added to a chain of blocks, creating a unique record with a unique history. Forging a single record means forging the entire chain, which is practically impossible.
Many known names like Bank of America have invested a lot in blockchain and has the highest number of patents in this technology – over 50 patents. There are over 70 live blockchain projects running globally by major banks. A Norwegian bank recently announced the option for customers to convert their financial holdings into cryptocurrency. All this is happening around Blockchain because major banks understand their future is about this technology.
Why are organizations willing to adopt this new technology? Because they understand the modern business world is seeking faster and secure transactions, transparency & trust among partners, and lower transaction fees.
How blockchain helps your business
Elimination of fraud
Blockchain technology gives you a spectrum of opportunities such as using blockchain ability to achieve autonomous consensus and peer-to-peer transactions between parties. This technology plays a key role in improving transactional productivity; secure payment systems, reduction in transaction fees and minimizing time lay and delays experienced in chain supply. The technology has disrupted the intervention of third-parties in transaction leading to transparency and elimination of fraudsters.
Data tracking is becoming popular with blockchain technology. When it comes to shipping of goods a clear record keeping is done on blockchain ledger at every critical point, such as payment dates, dispatching and arrival time. This information is instantly recorded into the blockchain ledger through smart contracts. This enables businesses to carry out an efficient investigation in case of complaints or loss of goods. Also, data tracking by blockchain ultimately helps to cut down the administrative bureaucracy and costs.
A smart contract is a self-automated computer program that can perfectly execute terms of any contract without the intervention of mediators. “Smart contracts” make it possible for businesses to be able to bypass regulations hence “lowering the costs for a subset of normal banking financial transactions.” Blockchain has to revolutionize the entire industry and the manner in which business undertake in the digital era. If your business embraces this technology, you will be likely to perform incredibly well as compared to competitors that remain rigid.
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