Updated: Aug 16, 2021
Cryptocurrencies such as Bitcoin became all the rage in the trading world in late 2017 and early 2018. However, blockchain technology is a relatively new and less explored concept in the crypto world that has quite a high potential to thrive. Is Blockchain the Future of Cryptocurrency for Businesses, or just a trend?
Basics of Blockchain
Blockchain is a technology entirely based on storing information in a distributed ledger system, a.k.a ‘blocks.’ The blocks are linked sequentially to form a chain. The distributed ledgers are programmed to record data that holds financial significance. In short, a blockchain is a time-stamped series of tamper-proof records of data that is not managed by a central authority but managed by a network of computers or nodes.
The blocks are linked in a way that if a change is made in any one of the blocks, all the block holders of the chain get notified. This makes the system decentralized and keeps it protected from any forging or destruction, making it the most trustworthy and safest of all the crypto technologies. For this secure foundation, a special system known as cryptography is used.
The 3 Pillars of Blockchain Technology
There are three pillars of blockchain technology which are transparency, decentralization, and immutability.
Transparency in real life means being able to see through. In Blockchain, it means that the blockchain is not private or hiding transactions, all the transactions are public and can be viewed by anyone on the network.
The true meaning of decentralization is not having a central unit. Within the blockchain industry, it means that it is autonomous and does not have a central governing unit. Being centralized adds a layer of security because there is no one central server that can be hacked.
To be immutable means it cannot be altered. Therefore, blockchain immutability is once a transaction is pushed into blockchain it cannot be altered. In addition, there has to be consensus (verification) amongst all the nodes (computers) before a transaction can log on to the blockchain.
How Can Blockchain Technology Elevate Business?
Blockchain has been the talk of the town for the role it plays in the digital currency world. It has revolutionized the world of cryptocurrency. However, it must be brought into light that apart from its use in cryptocurrency, there are several other ways that blockchain technology can be used to enhance and escalate the growth rate of a business.
Many believe that the impacts of blockchain technology are far more high-yielding in other fields than cryptocurrency. Financial analysts consider the true potential of blockchain is yet to be discovered. Whether it be a cryptocurrency or non-crypto field, blockchain is currently being utilized in several other fields related to business and is expected to expand further.
Let’s take a look at blockchain and how this technology is currently being used, and how it could be valuable to every business.
1. Blockchain in Accounting
Blockchain technology has been used in maintaining accounts worldwide. This helps in reducing maintenance costs and saves time that was previously utilized in keeping ledger records. It gives the accounting professionals secure access to the records of the organization. For example, Deloitte’s PermaRec (a permanent record) incorporates blockchain into their operations hosting blockchains both publicly and privately through permissioned internal variations.
At the 2016 Shanghai Blockchain Hackathon, the Deloitte Rubix Team launched PermaRec during the two-day event. Deloitte’s solution allows companies to record transactions in a globally distributed ledger residing on the blockchain. The Deloitte PermaRec solution connects SAP, Oracle, and other financial reporting systems enabling Deloitte to review transactions from both parties ensuring legitimacy and appeasing regulators.
Several other examples can be seen where the technology made the field of accounting much easier, reliable, and transparent for professionals. Blockchain systems cannot be penetrated, so it eliminates the human errors caused during data entry.
2. Blockchain in Advertisement and Marketing
Blockchain technology takes the advertisement and marketing departments of an organization to a whole new level. Every year, marketing departments have to bear a significant loss due to fraud. To eliminate the risk, blockchain technology can be applied to programmatic media buying. This ensures transparency and eliminates mediators, if any. Moreover, consumer's privacy is kept intact.
IBM, Blockchain4Media, AdNode, AdDax, and many other companies use blockchain to cut wasteful spending on advertising and ad buys.
3. Blockchain and Human Resources
Human resource departments can also benefit from the perks of blockchain technology. The system provides verification of personal information provided by an individual, such as age, nationality, work experience, qualification, certificates, skills, and social associations, and more.
But on an even larger scale, blockchain technology is invaluable for projects. If you are launching a big project or strategic initiative, blockchain can seamlessly connect all individuals, businesses, vendors, contractors, activities and communications, authorizations, budget approvals, etc. Without phone calls, emails or stacks of paper, the right talent can be authorized and brought in at each relevant step in the process, given access to the information and resources they need only for as long as they need them, with activities moving automatically and transparently along the chain.
At the very minimum, blockchain for HR can ensure its employee's data security, whereas only authorized people can have access to the employee data. Blockchain also plays a huge role in determining the payroll and keeping records of bonuses and other compensation. Most significantly, the technology offers assistance with building smart contracts, which lead to safer employment records and the elimination of risks of any disputes.
4. Blockchain and Cyber Security
Blockchain plays a significant role in cybersecurity. Cybercrimes are the major causes of massive losses bore by most businesses’ vulnerabilities. Equifax has been facing massive cyber-attacks and data leaks in recent times. Competitors are always looking for ways to steal inside information of a company. Because of this, companies must search for ways to counterattack and prevent unauthorized access to their data. There is no better way to do this than to store all of that private information in blockchains.
5. Blockchain and Supply Chain Management
Blockchain aids businesses in keeping the supply chain going in a safe, transparent, and efficient manner. Decentralization and data immutability abilities of the technology help the supply chain to work at its best. The continuous need to maintain a record demands a system where there is the least margin of errors. For example, blockchain is used in the pharmaceutical industry to track the medicine lifecycle from production to pharmacy point. Companies like Albertsons, Walmart, and Carrefour are embracing the potential blockchain for efficient supply chain management.
6. Blockchain and Identity Management
With the advancement in technology, personal data has now become more vulnerable than ever. The Biodata of an organization or person is just a few clicks away. Blockchain system has transformed the way online identity management takes place and ensures full identity security.
Due to the vast scope of functions, it has to offer in different industries and sectors, it would be no exaggeration if most digital currency enthusiasts look to blockchain technology as the new future of cryptocurrency for the business world. It has become the most significant of all the cryptocurrency innovations made to date.
If it’s true that 'the future is digital' there is value in exploring technologies that are moving in hard and fast. Sticking to conventional business and trade methods simply because it’s familiar is a recipe for failure. “This is how we’ve always done it” contains the seven most expensive words in business. We know that past success is no guarantee for the future, especially when the only constant is change.
Position your company to a blockchain-ready business model today and watch your business soar in the upcoming years.
At Our Project Experience, we have a dedicated team to help get your project off the ground and reach your goals. Each client is paired with the perfect project manager, based on project requirements and how well we think you’ll work together. We’ll make sure your experience is a smooth and happy one, and you’ll have our full team at your fingertips. Learn more here.