Can your company use the Blockchain technology? Learn about the industries that benefit from the advantages of this solution – such as transparency and decentralisation – and find numerous business applications for it.
From the article you will learn:
- what is the Blockchain technology;
- what algorithms and methods does Blockchain use;
- which industries use the technology based on chains of blocks;
- which companies should implement Blockchain-based solutions.
In 2009, the world went crazy for Bitcoin, that is the first decentralised digital currency. Since then, it solves the problem of transferring money between different public accounts, without the need for additional bodies or a central server. All transactions are public and stored in a distributed database. This project has inspired other industries; companies are more and more willing to use the Blockchain technology, and chains of blocks are widely used by them.
Information storing and data up-to-dateness
Blockchain is a solution with minimal risk. This technology is distributed and decentralised. Blockchain ensures privacy and data safety; it is a faster and cheaper solution than the average centralised system. The data is not stored in any location – it is copied and updated on many different devices connected to each other, forming a kind of network. The processed data is public and verifiable at any time.
Digital resources security and digital identity
In order to make sure that the transaction is legal and comes from a trusted source, Blockchain uses cryptographic methods and algorithms. The identity of every person who uses solutions based on the Blockchain technology is hidden behind random characters. Through cryptography, you can quickly prove that the given resources belong to a specific person. Each user automatically becomes the owner of a private key, thanks to which only they can create digital signatures.
Industries using the Blockchain technology
These several technological advantages mentioned above make more and more companies from various economy sectors interested in implementing Blockchain-based solutions into their structures.
Blockchain and law
Contracts are ideally suited for legal tasks, as they can replace the existing instruments of proxy creation. Smart contracts are based on creating a code that contains principles and other information necessary for its implementation. Automatic execution of this code in a Blockchain-based network is guaranteed only when the defined conditions are met. The code is executed independently of the interested parties, so it can replace the intermediary (e.g. a lawyer) in a legal process. In addition, the majority of the procedures associated, for example, with valuation of real estate, can also be automated and become more objective. At the current development stage of the Blockchain technology it is possible to create advanced and multi-stage contracts covering the entire process, from submitting the application to closing the transaction.
Blockchain and banking
As has already been mentioned before, Blockchain is a transparent, distributed and decentralised technology, what currently causes the largest banks to use this technology to reduce the costs and time of international transactions. Blockchain creates a new digital reality in the world of payments, and banking institutions already benefit from the advantages of the Blockchain and its infrastructure, among others – to make transactions, optimise the costs related to trading in securities, international transfers and auditing.
The technology reduces the possibility of making an error by an individual user, and in addition – when such an error occurs, it can be located much faster. Financial institutions or banks no longer have to worry about creating backup copies of their documents – Blockchain allows you to save information in blocks that are not edited or deleted. In addition, when any interference with the structure of the blocks occurs, it is easy to identify the perpetrator. All transactions carried out using this technology are made in real time, without any intermediaries, while maintaining a greater process integrity. Interestingly, some financial institutions take into account the creation of their own asset-backed digital currencies (cryptocurrencies). The designed tokens will allow for faster and more convenient execution of transactions, and ensure users' security.
Blockchain and power industry
The majority of Blockchain's research or pilot projects in the field of power industry concentrate on creating a peer-to-peer market for providing electricity, as well as settling transactions and micropayments. The electricity market is trying to reduce the total costs of purchasing electricity by removing external agents or additional partners. The blockchain technology offers such possibilities; it allows you to conclude energy sales transactions in a short time and in a direct way, without the need for a central representative. Moreover, Blockchain enables clients to purchase electricity directly, using a ”peer to peer” approach. This approach bypasses central servers and other institutions that oversee the purchase, while ensuring that all hosts in the network have the same rights. Micropayment services also help to minimise or eliminate the need for third parties, increase clients' versatility, and improve security.
Is Blockchain right for your company?
Many company representatives wonder whether it is worth to implement the Blockchain into business that they run. The answer is: it depends. First and foremost, you should take into account the business needs, and then link them to the advantages of the technology in a thoughtful and objective manner. Blockchain is not a perfect solution; it is worth to be aware of its weaknesses, and the need to incur adequate financial and executive expenses. A properly chosen Software House or Technology Partner can help you create a Blockchain-based system, that will be tailor-made to your needs, business challenges and opportunities. Contact a specialist to get an expert opinion about your business and get answers to questions regarding the solutions adjusted to the character of your organisation.