Blockchain technology has been a hot topic for over 10 years, and many still have a perception that it is only a source for cryptocurrency earnings. That’s partly true: there are ways to get bitcoins – via mining or arbitrage with the use of a crypto trading bot. However, the opportunities hidden in blockchain technology are far beyond those two actions.
There are hundreds of companies that have already successfully implemented blockchain-based solutions. Have you ever thought your business could join them too? Before making a decision let us explain the key points of blockchain technology and give examples of how it can be utilized in specific industries.
The concept of blockchain
Blockchain is defined as a type of a digital distributed ledger where transactions are recorded chronologically and they are visible to the public. The system is decentralized: all the information is stored on different devices around the world, so there is no specific authority that could control it.
Basically, there are blocks linked using cryptography, and they contain digital data – from financial transactions and to medical records. Once a block is completed and added to the chain, it is impossible to change it, and this way the users can follow every step of transactions or records, track important information.
Based on the definition, here are several key features of blockchain technology: immutability, transparency, enhanced security, decentralization, peer-to-peer network.
What does blockchain technology do for business?
To answer this question, it is easier to provide examples of technology utilization in specific areas. Logistics, healthcare, sharing economy, real estate, FinTech, retail, gaming, social media – this is a list of a few industries that already benefit from the blockchain solutions. Let’s take a closer look at them.
Logistics. Physical paperwork, container loss, and constant communication stay back in time if your company utilizes blockchain technology. Since all the steps are recorded in real-time and block content is immutable, document coordination, order tracking, and authentication become easy as well.
Retail. Retail is about goods and payments, and both of these aspects must be safe. Here comes blockchain which gives users control over transactions and helps to track the goods’ route from the factory or even a field to the shelf. Technology also contributes to costs reduction, improves customer experience. Hence, the company gains trust and makes a profit.
FinTech. Utilizing blockchain solutions financial operations become fast and secure. Payment transactions are encrypted, your safety is also provided by multi-factor authentication mechanisms and smart contracts. Extra fees can be reduced too because the blockchain system often eliminates third party participation.
Real Estate. The solution which is already widely used in real estate is blockchain-based smart contracts. They save your time, effort, and money as you can exclude intermediaries from the contract execution and perform all the necessary transactions much faster. Marketplaces are crypto-secured, ownership verification is automated.
Healthcare. These days both doctors and patients get to use new models for health information exchanges (HIE). Medical records are now stored on a blockchain via smart contracts, and patients, for instance, can set up access rules and collect their own data from the hospitals. Hereby, blockchain gives transparency and reduces the number of time-consuming tasks.
eGovernance. Government services digitalization is probably the most important result of blockchain technology implementation. Now citizens are able to access and manage their data. Blockchain also offers immutable voting solutions, automated global ID, and certification processes.
Gaming. Gaming is one of the industries where blockchain technology mass adoption may happen very soon. Many computer games include in-game purchases, and with blockchain, virtual earnings can get to the real world in the form of tradeable tokens and currencies. Transfer fees would be low, and payments – made with no delays.
There is no doubt that with time blockchains will enter most spheres of our lives, and it is better to get ready: learn about the technology, its advantages, and how useful it can be for your business in particular. If you already plan to implement blockchain solutions, turning to a blockchain consulting company would be a good idea as they can assist you with research and development, and come up with the best solution that fits your business goals.