Blockchain is a very popular technology these days. But it is still not widely used by the people as it should be. While some companies are going crazy about learning this hot technology to implement blockchain in business, some like to dismiss it. Blockchain has been in the market for a while, but things are still very new to be applied in practical life.
The uses and implications of the technology are limited to certain sectors. Once people get hold of the benefits of Blockchain technology, there will be a rise in its applications.
You’re not going to a store and buy a cup of coffee with Bitcoins, right; said Anders Brownworth, a Chief evangelist at Circle. The circle is a money-sharing application that lets you transfer money to anyone from anywhere with the help of blockchain technology. We still need cash to process things. We are not there at ground level. But no doubt, blockchain is an interesting technology for cross-border flow. When you sending money and it needs to convert into the local currency. There is the future scope of Bitcoin at such moments.
How is blockchain used in business?
As per the definition of blockchain, it is essentially a chain of “blocks”, which consists of information about the transaction, information of the user, and a hash code. A hash is a unique code to distinguish between different blocks.
According to Investopedia, blockchain in business is helpful in the following ways:
- Transparency and security: as we all know, transactions made in blockchain technology are end-to-end encrypted. It makes it more secure and allows every aspect of the transaction to be measured and tracked.
- Tracking of transactions: Blockchain makes it possible for businesses to easily track their product and services. It can check the product from the factory until it reaches its destination to the user.
- Cost-effective operation: A technology is called successful when it can reduce cost and human error. One of the key benefits of blockchain in business is the reduction in operational cost. This happens because blockchain lets businesses remove intermediaries or any administrative work related to transactions or keeping of records.
Some businesses have already adapted to blockchain technology. Here are some ways you can see how beneficial is blockchain in business:
Contracts: Blockchains can be used to create reports and contracts. This comes in handy for businesses dealing with legal matters. Some business needs to deal with contracts frequently. And the use of blockchain helps to keep the contract confidential and cannot be subsequently changed or altered in any way possible.
Bookkeeping: some businesses require a lot of accounting work to be maintained. Bookkeeping is one such business that requires long hours of accounting work that goes beyond the borders of their network.
Transaction across borders: blockchain is widely used to function international transactions. As mentioned earlier, blockchain technology is encrypted, making it safe, secure, and ideal for international transactions. Additional features include faster transactions, accuracy, and the ability to remove the formalities of third parties banks’ benefits for the use of blockchain in business.
Incorporation of Blockchain Technology in Business
Recently, IBM has blockchain platforms that are available to use for businesses of all sizes. Applications extend to a larger number of industries and businesses.
IBM blockchain platform called Hyperledger Fabric is an open-source framework to use. This framework supports the full life cycle of an organization’s blockchain network. It can also be used with a cloud provider on-premises. It supports a number of applications like global trade, international payments, or food.
Another company getting into blockchain technology in business. They have planned to offer SKU level data for every product purchased through a promotional event. The information stored in AMEX will be including time, location of the item, product, and purchase method used. But any data shared with the merchant will be safe and secured and will be anonymously put.
Lockheed Martin is a leading industry incorporating blockchain technology. They’re collaborating with Guardtime Federal to implement blockchain technology in order to manage supply chain risk, support systems engineering and software development, fix the threat of data manipulation and online attacks, and increase the rates of survival missions.
Impact of Blockchain in Traditional Businesses/Markets
Scoring capital is the major issue for any startup. Getting funds for your idea and developing a business from scratch can be difficult and lending options are not often not enough. In such a scenario, blockchain can enter and act as a capital-providing tool as cryptocurrencies are decentralized. The fees associated with the transactions are also quite minimal. Investors like Angel and Venture Capital Firms can help you get funds in minutes. To boost and encourage new startups in the market, it is really important to have more options to secure capital.
The world’s economy is evolving rapidly. The businesses that support the flow of innovation will have the benefit of saving money and building a reputation in this daily growing digital world. Blockchain technology, together with the help of smart contracts and online assets will make the trade and governmental processes safer, faster, efficient, and scalable. And the economy will understand the value of decentralization with the increase in numbers of small players, supported by digital technologies, join the blockchain in business.