Blockchain, Cryptocurrency and Bitcoin are the terms that have created quite a buzz. They are grossly misinterpreted and seen as some kind of a fad. This is not without a reason though, especially after the Bitcoin value reached the $20,000 mark, triggering anticipation, uncertainty and conjecture. However, experts feel the worth of bitcoin is the least interesting part in the whole game. It is the underlying technology-the blockchain that has more worth and is going to disrupt industries and make them more efficient.
Although blockchain technology has been around for a few years, 2017 was the year that it really took off. This blockchain revolution promises to touch every industry, while a broad range of financial services has already adopted it, blockchain is also finding applications in non-financial industries such as retail, healthcare, real estate, law enforcement, luxury goods, education, Government and other industries. Due to this many business enterprises are now looking to implement it to power up their business and Blockchain Australia can help.
In this article, I will touch on blockchain uses in your business and uncover the benefits blockchain has to offer for different industries. Before moving on to that, let’s take a look on what blockchain technology is.
What is Blockchain Technology?
The blockchain is the digital and decentralised ledger that tracks, records and verifies any transaction or contract between two parties. The ledger is public, distributed and encrypted in order to protect it from cybercriminals and highlights the possibility of eliminating the middleman. It is implemented by three technologies, private key cryptography, distributed peer-to-peer network and protocols for performing transactions and ensuring security & record keeping.
The blockchain is all about decentralisation of the data removing reliance on a single storage unit and replacing it with a network of nodes. Not all blockchain projects are the same, some emphasise more on security but lack transparency while others focus on efficiency. Blockchain offers the following benefits and it is up to organisations how they decide to implement them. Take help of One Stop Media here, as they can better advice you on the implementation process.
Transparency – Blockchain is open to scrutiny and anyone using it can track the history of transactions.
Integrity – Possible only when network consensus is achieved a transaction can take place. There is no way for users to operate independently.
Efficiency – The blockchain is immutable and eliminates the need for manual verification or third-party inputs.
Security – Each link in the blockchain is hashed meaning that the technology is free from error as the computing power and effort needed to unencrypt each link outweighs the benefits.
Role of Blockchain Technology in Your Business
The blockchain technology plays many roles in your business and can boost its growth. Various companies like IBM have already adapted bitcoin technology investing millions in cryptocurrency market. Here are a few roles of blockchain technology in your business.
Contract Management and Smart Contracts
Contractual transactions are time-consuming and can restrict the growth of a business especially the ones that process a lot of communications constantly. As a public ledger, blockchain validates and records all transactions, making it both reliable and secure. This paves the way for smart contracts for almost any industry such as health, insurance, entertainment that hold some sort of digital asset or security such as account information.
Supply Chain Management
In supply chain management, blockchain technology allows for immediate status updates and increase the security, cost-effectiveness, traceability and visibility of the supply chain. Simply put, blockchain can track the movement of goods, their origin and quantity. This brings about a new level of transparency simplifying the processes such as production process assurance, ownership transfer and payments.
Payment Processing and Currency
As blockchain does not require a third party or central authority for peer-to-peer transactions, it enables fast, secure and cheap funds transfer across the globe. While there are already various services that process international payments but require sizeable fees per transaction. Other P2P payment services have specific limitations such as location restrictions and minimum transaction amount. That is why more businesses are beginning to prefer cryptocurrency for international transfers and getting online cryptocurrency wallet development for their needs. Cryptocurrency wallets are not only more secure, but users are granted freedom for the movement of their funds.
Blockchain Use Cases in Business
This industry was the first one to implement blockchain technology, let’s take a look at some use cases.
Banking – Banking stands to be disrupted by blockchain technology more than any other industry and the benefits offered include reduced costs, easier auditing, better security, improved data quality and shorter settlement times.
Insurance – One of the key opportunities that blockchain technology offers to the insurance industry is data transparency. The benefits blockchain offers here include transparency and relevant record keeping, reduced cost and time of processing insurance claims, reduction in insurance frauds and improved customer engagement.
NON FINANCIAL SERVICES
Healthcare – For medical and healthcare providers, blockchain technology offers outstanding opportunities in storing an enormous amount of records which are tamper proof, performing pre-authorisation payments, processing complex transactions, storage of complete medical histories of patients for use by physicians and reduced time and increased efficiency in providing quotes.
Law Enforcement – As with insurance and banking, law enforcement is generally organised but entails some centralisation of power. The invention of blockchain has spurred a new organisational model leading to reduced transaction cost, better protection of individuals and organisations, automation of contract performance and smart contracts, intellectual property rights and recording and maintaining property ownership and public records.
Real Estate – Vulnerabilities related to real estate include time-consuming paperwork, errors in public records, possibility of illegal deeds and lack of transparency which can lead to issues. Blockchain technology offers a mechanism to mitigate these challenges with increased transparency in all records, prevention of fraud, no third party involvement which reduces costs and automated payments in property investment.
Education – Academic credentials are those pieces of data that need to be universally recognisable and verifiable. Blockchain technology takes the place of paper documentation and case-by-case checking and the benefits are improved verification procedures, reduction of fraudulent claims, transparent data storage and objective and universally recognised credentials and records.
This is how blockchain technology can power up your business and if you are considering implementing blockchain to your business and need advice then blockchain technology consulting experts can help you in successfully implement blockchain.