In the 21st century, Blockchain technology is the most promising horizontal innovation. Global blockchain market is estimated to reach $20 billion by 2023. To comprehend the importance of blockchain technology for business, it is crucial to understand the concept of blockchain.
Blockchain is a series of data blocks linked together. It is also referred to as a ‘data ledger’ which is encrypted, time-stamped and managed by computers not governed by a single entity. All the data stored within the blockchain is saved on multiple computers within the network. Any changes made to the stored data is notified to each node (computer) on the network.
Blockchain is generally associated with digital currencies but its application is found in several industry verticals such as healthcare, finance, supply chain, security, real estate, legal and many more. Growth of blockchain technology is sky-rocketing into many more industries to meet its full-potential.
Now, let’s look into why blockchain technology is important to business.
Blockchain technology is undergoing an evolution with major technology service providers such as Amazon, Oracle, Samsung, IBM, SAP, and HPE are adopting this technology with Blockchain as a Service solutions.
Advantages of Blockchain Technology for Business
Implementing blockchain technology for business has many advantages. They are as listed below.
- Digital Freedom: Centralised organizations such as banks offer connectivity but also take away the customer’s freedom. Any transaction/bank account can be blocked as per the bank discretion. Blockchain enables users to experience true digital freedom. Your digital currency can be used without any centralised authorization. You are the owner and hold responsibility for your assets.
- Decentralised services: The main feature of the blockchain technology is also a key advantage. Experts claim decentralization of services is the backbone of a futuristic society. Decentralized services will be in every sector for the management of assets, energy or resources. This will open up a spectrum of valuable options that are unavailable to users in the current market.
- Data Security: Blockchain has an added layer of data security with the use of cryptography. It uses complex algorithms to secure the data and systems on the network. Cryptography with decentralization makes the blockchain more secured than any other system. Additionally, each block is encrypted with a unique code keeping data forgery, hackers or any malicious activity at bay.
- Improved Efficiency: Blockchain enhances the overall efficiency throughout the business process. Data security, removal of authority, and better process increases the operational efficiency. Transactions are carried out within a few seconds than a need for buffer period for domestic and international transactions.
In conclusion, implementing blockchain technology into business is highly beneficial. Removal of mediators and point of contact not only reduces operational costs but also improves operational efficiency and business growth. Fast and easy transactions also result in increased efficiency. Many companies have transformed their business with blockchain technology for smart contracts, cloud storage, supply-chain communications, to pay employees, electronic voting and more. With abundant applications of this horizontal innovation, blockchain is crucial for our society to move towards a futuristic community.