4 Ways Blockchain Technology is Changing the Way We Do Business

The global economy has undergone digitization since the 20^th century. The first phase of digital tech is aimed at reducing the time taken to complete mundane business tasks. The next wave of technology, however, brings a new order of economic conduct.

Blockchain, is one of the phenomena that has become widely popular. It might have seen its first application with cryptocurrencies. However, its real potential lies in its ability to revolutionize the conventional business landscape.

What is Blockchain?

Blockchain, also known as distributed ledger, can help to track, record, and store transactions on blocks. In the business ecosystem, these blocks of data hold the potential to perform different types of good exchanges, contracts, sales, monitoring, payment, and recording.

As this technology becomes more mature, more industries will use them to refine their business procedures and communications. And with a wide potential waiting ahead, we might be watching new faces of Blockchain technology changing the corporate currently.

A report from International Data Corporation (IDC) anticipated Blockchain spending to reach 12 billion USD by 2022.

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The question is, how can we apply Blockchain across different verticals today?

This blog lists four ways Blockchain is changing the business landscape. Let’s explore how:

1.Streamlines Business Management and Operations

One of the most promising factors of Blockchain is its ability to streamline business operations and reduce the friction between different parties during the information exchange. If manufacturers aim to run efficient and effective operations, they must work on strong and regular communication with value-chain partners. These include the suppliers, certification companies, logistical departments, buyers, and service providers.

The Blockchain technology can cut the manual tasks involved to maintain this communication. It enables a new approach to rapid and secure information exchange across the value chains. It puts an end to data silos by providing controlled and secure access to every partner.

Entities working in the same business have a higher level of trust because they access the same network and work towards the same goals. Maersk, the global shipping giant, is already working on this aspect of technology. It was operating on the trial of Hyperledger Fabric to track shipping containers globally and prove that records were not changed.

Digital Asset and IBM created it to host a chaincode of data. This is more secure than traditional asset management and tracking.

2. Simplified Payments

Banks are using the outdated system with regular upgrades. This puts a business owner at a high risk of cyberattack, social engineering, or phishing. For example, malicious entities might steal the information of individuals or send payment to a cyber-criminal.

Blockchain brings a digital currency that eliminates all such possibilities. Every transaction takes place in a block. Each block links with the previous and the next block in line. Cryptography is the basis of this technology. This security encryption keeps hacking and frauds at bay. This turns into the safest form of digital payment and information storage. It enables entrepreneurs to set up a scalable online business.

80 of the world’s leading banks have joined a consortium, called R3. They have created Corda, a distributed ledger platform with the highest banking standards. Even International Monetary Fund (IMF) has taken note of the new economic wave created by Blockchain. It recently made the following statement:

“Rapid advances in digital technology are transforming the financial services landscape, creating opportunities and challenges for consumers, service providers and regulators alike.”

With Blockchain payments, unnecessary links are cut out of the chain with their associated costs. Like for example, you can purchase a heavy asset such that of a car from platforms like Autocoincars and feel confident in making the right choice without undergoing any hassles.

3. Replacing traditional contracts

Smart contracts are another factor of Blockchain technology that will greatly influence business relationships and organizational communication. It will help to ensure and regulate a standard of service between the parties involved.

These crypto contracts control digital currency transactions. When translated into a business terms, they work as an agreement between the two sides where they agree on several conditions before proceeding with the business activities.

Think of all the steps involved in buying a car. It requires verification of the identities and evaluation of the vehicle history. There may be stipulations around the retention or removal of certain fixtures in the wheels that need attention. When both parties agree upon the related issues, they can then proceed to formulate a contract. Next, there is transfer of money between the parties according to the agreed terms.

A smart contract is a piece of software code with contractual conditions and terms wired into it. It connects with the Blockchain ledger and tracks all elements of the contract. Identity, legality, and ownership get validation, and the process proceeds ahead.

4. Data compliance and records

Business data is a valuable asset that they can’t afford to lose. Cybercriminals have developed multiple ways to penetrate in business systems and steal delicate information. There are high chances that Blockchain will reduce these attacks if the developers find a system to protect valuable corporate data.

Its applications like long-term data security, compliance, and record-keeping will enable businesses to keep malicious entities away. A lot of research in this domain is pending. Yet, we anticipate some extraordinary developments to happen over the years.

Wrapping Up

There is a huge potential of Blockchain technology that can bring a positive impact on the overall corporate climate. A few years from now, the business landscape will be radically different than what it is today. Instead of waiting for that period, we better play an active role to bring the change.

The Blockchain, together with smart contracts and virtual currencies, will make business procedures scalable, efficient, and fast. We better dive into the learning sphere to know what and when to do!

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