Why is Blockchain Technology Important for Business?
We have talked about Blockchain Technology basics on this blog before. If you didn’t read our previous blog on the blockchain Technology then first go and read that. So, to give you an extremely short description. In the simplest terms, Blockchain Technology can be described as a data structure that holds transactional records and while ensuring security, transparency and decentralization. You can also think of it as a chain or records stored in the forms of blocks which are controlled by no single authority. A Blockchain Technology is a distributed ledger that is completely open to any and everyone on the network. Once information is stored on blockchain applications, it is extremely difficult to change or alter it.
Nowadays Blockchain Technology is hugely important for the business. The Blockchain is one of the hottest and fastest-growing skills in the IT sector today. The Blockchain Technology is continuously evolving and the next decade is going to be the decade of technology. The digital currency such as Bitcoin and blockchain will take the front seat. Blockchains does not only store economic value, but it can be used to store anything be it music, title, intellectual properties and even votes. All these properties can be secured through Blockchain applications.
People are opting Blockchain technology because of robust security that is provides to the users. It is hugely hard to get information or data loss. The trust in Block chain technology is not established through powerful forces such as government or agencies but through the intelligent code and mass collaboration. Blockchain Technology is considered to be the first digital medium for value just like the internet was the first medium for digital information. It is being circulated that Blockchain technology will change the face of financial transaction in the next few years.
The reason why the Blockchain technology has gained so much appreciation is that:
- It is not owned by a single entity, hence it is decentralized.
- The data is cryptographically stored inside.
- The blockchain Technology is absolute, so no one can interfere with the data that is inside the blockchain.
- The blockchain Technology is transparent so one can track the data if they want to.
What are the advantages of Blockchain Technology for business?
The basic advantages of Blockchain Technology are decentralization, immutability, security, and transparency.
- The blockchain technology allows for verification without having to be dependent on third-parties.
- The data structure in a blockchain is append-only. So, the data cannot be altered or deleted.
- It uses protected cryptography to secure the data ledgers. Also, the current ledger is dependent on its adjacent completed block to complete the cryptography process.
- With the smart contracts, the businesses can pre-set conditions on the blockchain. The automatic transactions are triggered only when the conditions are met.
- Since various consent protocols are needed to validate the entry, it removes the risk of duplicate entry or fraud.
Blockchain technology is promising as a business focus for many companies in many industries. Let’s have a look!!
Where is Blockchain Technology being used?
- The banking sector – blockchain is said to be the safest way to store banking records and probably the easiest and cheapest means in transferring funds through the decentralization provided by blockchain.
- Voting – voting irregularities could be minimized with the help of blockchain technology. Everything can be secured through blockchain, from casting votes to tallying the votes, the system is said to be indisputable.
- Healthcare – managing records of patients could be a pain during the past, but this isn’t the case today. Today, doctors can easily access patients health records and track them regardless of how many times you have changed the doctors.
- Real estate – buying and selling land requires a lot of paperwork but with blockchain, the process is much easier and simpler.
- The legal industry – storing legal documents, retrieving them and verifying are the key functions that include in the legal industry. And the questions raised over the legality of wills and other important documents can be eliminated by implementing blockchain secured documents.
- The government – in a government sector, corruption can be eliminated using blockchain technologies. For instance, employment, welfare, and disability benefits can be distinguished and distributed in a much easier manner.
The different types of Blockchain Technology
- Public blockchains like Bitcoin and Ethereum
- Private blockchains like Hyperledger and R3 Corda
- Hybrid blockchains like Dragonchain
What is Public Blockchains?
Public blockchains allow anyone to participate as users, miners, developers or community members. All transactions that take place on public blockchains are fully transparent, meaning that anyone can examine the transaction details.
What is Private Blockchains?
Private Blockchains also known as permissioned blockchains. Private Blockchains are valuable for enterprises who want to collaborate and share data, but don’t want their sensitive business data visible on a public blockchain.
What is a consortium blockchains?
Consortium blockchains are sometimes considered a separate designation from private blockchains. The main difference between them is that consortium blockchains are governed by a group rather than a single entity. This approach has all the same benefits of a private blockchain and could be considered a sub-category of private blockchains, as opposed to a separate type of chain.
What is a hybrid blockchains?
Dragonchain occupies a unique place within the blockchain ecosystem in that it’s a hybrid blockchain. This means that it combines the privacy benefits of a permissioned and private blockchain with the security and transparency benefits of a public blockchain. That gives businesses significant flexibility to choose what data they want to make public and transparent and what data they want to keep private.
Statics of Blockchain Technology
- 26% of Companies Plan on Investing Between $1 Million and $5 Million in Blockchain Technology.
- 71% of business leaders who are actively using blockchain applications believe it plays a key role in advancing the technology.
- 84% of Executives Believe Blockchain Will Reach the Mainstream Eventually.
- 55% of healthcare applications will have adopted blockchain for commercial deployment by 2025.
- The financial sector has spent a total of $552M on blockchain in 2018.
- Blockchain Technology market size will be worth $7.59B by 2024.