The unprecedented growth of blockchain in a short period of time suggests that it’s here to stay. The sooner we integrate businesses and companies into a blockchain solution, the sooner we will get a better result. According to Statista, by 2030, the global market for blockchain development will cross $1 trillion. However, there is a lot of misinformation and confusion surrounding blockchain implementation for businesses. In this article, we have provided step by step guide on the most important factors in blockchain technology and how it will impact business
What is Blockchain?
Blockchain is one of the fastest growing sectors in the industry in recent years. Businesses and companies are leveraging this new technology to create a solution for their work. However, before we start with usage and implementation of blockchain, we need to understand what it is.
Blockchain is a digital ledger that contains a block of records that are decentralized and public. It can record and track the transaction of the block in a network. Basically, in layman’s terms, blockchain have blocks(records) that are connected digitally like a chain. Because of this, the records are incorruptible and immutable. Each block contains a time stamp of the data recorded, A cryptographic hash of the previous block and recorded data. The next block also contains the cryptographic hash of the first one, this way, no one can break the chain by altering or removing the data.
How Can Businesses Benefit from Blockchain?
- Security and Privacy
One of the main focuses of blockchain is to provide ironclad security for the data. Blockchain has end-to-end encryption that keeps all data safe. Apart from that, every member is anonymous and requires permission to access data. This will enhance the security and privacy of the data and keep it unbreachable.
- Cost Reduction
Blockchain can save lots of expenses for businesses as it provides seamless transactions of data. Features like cryptocurrency, smart contracts, and others will reduce the overhead cost of the business significantly. Blockchain offers an immutable transaction of data which is useful for businesses as they can remove the middleman from it.
Businesses depend on transparency and fairness which can instill trust. By using blockchain technology, they can share data and financial information without worrying about a security breach. Businesses can trade and exchange payments through blockchain as safe and secure. It has encryption, smart contracts, and a secure data transfer protocol that is unchangeable.
Blockchain can streamline the work process and increase productivity for the business. One of the biggest hurdles in any business is communication and access to data. Blockchain offers a safe and secure way to send immutable information. It also provides access to those members who are part of the network. With a combination of Blockchain, IoT, machine learning, and AI, we can automate redundant tasks and others.
- Smart Contracts
Smart contracts in blockchain indicate certain programable actions that are executed when predetermined conditions are met. This will automate a certain task that requires monitoring as blockchain can measure the task and when the conditions are fulfilled, it will automatically execute the next task in the line. This will revolutionize the business process, reduce costs and create an efficient work process.