Our digital world is skyrocketing in creating business solutions to bring us in a new and inspiring direction. The evident widespread of digital transformation has been massive and lucrative in recent years. It primarily affects the business world from all angles.
Have you ever heard of blockchain technology? It used to sound like hype, just like Web3 and NFTs. However, it has a huge potential to lead us to a brighter economy. In fact, it is creating micro-economies and transforming businesses and other potential business models.
Let’s see how it works and positively impacts the global economy.
What Is Blockchain Technology
As the digital world gets massive advancement, blockchain technology is rising because of its security and decentralization system.
To understand better, blockchain is a systematized database mechanism in which the record of information is impossible to change, hack, or cheat. All data is stored in blocks linked together in a chain, just as its name implies, “blockchain”. Also, information transparency is readily set for sharing among all businesses that are part of the network.
Like in accounting, it is a ledger of transactions, but it is just created digitally, duplicated, and distributed all throughout the network of computer systems within the blockchain.
Blockchain adopts a decentralization system. Users who are on the blockchain have full access and control over their transactions with security in place. To this effect, businesses can reach out to their clients anywhere in the world, bringing immense business growth as payment can be processed digitally.
The best thing about blockchain technology, it makes all business transactions traceable and trustworthy. Also, it helps reduce the costs of running business operations. With these advantages, it is projected that the world economy will spark up and bloom quickly.
The Radical Change
The birth of blockchain technology created a new path that is promising for companies struggling to survive. It lays down opportunities to take part in innovative approaches with lesser expenditures.
If you are familiar with Bitcoin, it is the first attempt to use blockchain technology. Although it was outlined in 1991, the practice was done in 2009 using this type of cryptocurrency. Amazingly, it has made a huge leap thrusting blockchain technology to undergo more radical developments in various business areas.
The 4 Major Attributes
Integrating blockchain technology in business will involve all participants transacting with one another. Blockchain system gives them due permissions to access the ledger technology with efficiency and trust. All activities made are put under the scrutiny and validation of permissioned participants. Once done, the ledger is updated. Through this culture, business solutions have higher chances to scale up and expand because of adaptability across industries.
In essence, blockchain has transformed businesses today due to its unique attributes as follows:
There’s no single transaction that can slip away from the attention of relevant participants. Before ledgers are updated, transactions have to go under their validation.
Upon the approval of network partners, all recorded data is reproduced and distributed across the participants in the channel to see the trusted version of transactions.
Records of transactions are held permanently, they cannot be removed, but more blocks can be added, thereby increasing the trust value in the system.
Nobody else is allowed to create blocks except those authorized entities or trusted network partners.
There’s no doubt that blockchain empowers business models in many ways. It helps to create innovative business solutions and revamp old and less effective ones.
Below are a few of its advantages in business these days.
- Provides an avenue to creating Smart Contracts. These are self-executing contracts that are written in the form of codes.
- Payment is by the fingertips and quite handy for processing health Insurance benefits. The Insurance company on the blockchain has access to data on your visits to the hospital and payments you made.
- The supply management has a transparent environment. Transactions are traceable from manufacturing, transporting, and delivering the products to the end consumer. This helps to eliminate counterfeiting and delivery delays without compromising security in the process.
- Human resource processes such as hiring potential candidates are made more fair and authentic. Fake documents are detected and prevented.
- Marketing campaigns become robust because marketers can access real-time client information and customer behaviours. They can better map customers’ journeys, increasing their ROI.
- Using the best blockchain-as-a-service provider, sleek control of customers’ profiles becomes more doable, making it efficient to identify potential loyal customers. It opens a wider horizon for customer engagement, especially the target market.
- The power of automation is high on the go, reducing human-based errors and waste.
- Financial management is getting more savings on operational costs because third-party vendors are eliminated from the system. Blockchain runs on decentralization.
- Business owners are allowed to raise their capital investments through Initial Token Offerings (ITOs).
And a lot more!
Blockchain technology offers a trusted system where participants can see things through to create more business solutions for many sectors and industries. If paired with big inventions and innovations like AI, Cloud computing and Big Data, businesses across the globe in all sizes will have remarkable ways of revamping several business downfalls.