“Blockchain” – the term has been going around for some time, mostly because of one of its applications – Cryptocurrency. But Blockchain is not all about Cryptocurrency. It is, in fact, a technology that enhances data security and reduces the chances of data theft. Data is an essential resource in today’s businesses. Neither SMEs nor big enterprises can do without data anymore. Everything is going digital at a fast pace, generating mounds of data per minute. If the companies cannot find a way to handle such huge amounts of data in a secure manner, businesses will face the risks of hacking, data theft, etc.
Blockchain helps in doing just that. Wondering how?
Well, it is a series of extendable blocks of data listed in chronological order and secured by cryptographic techniques. Altering and stealing is almost impossible as each member of the Blockchain is aware of the order, which cannot be changed without everyone’s permission.
A decentralised public ledger, Blockchain is a permanent mode for keeping mounds of data, like financial transactions, customer details, product transfer details, important dates, logistics, and many more seamlessly. Initially developed to minimize frauds and data modifications, Blockchain is a highly-reliable database that cannot be tampered with, as each member in the network has access to the original records. No wonder, Bitcoin, a product of Blockchain technology, is one of the most popular digital currencies in the world right now!
Blockchain is not all about cryptocurrency, blockchain applications range beyond crypto – this you should know first. It improves transparency in transactions and data handling, thus reducing overhead costs for businesses. In fact, it can change the whole way of doing business in the modern world. Let us delve into the details of blockchain applications to help you understand those better.
Blockchain technology can help financial institutions save a lump of money by minimizing third-party charges and doing away with red tapes. It also makes ledger systems more practical and real-time. Several tools can be employed to track and monitor fraudulent exchanges, and cryptographic ledgers can be used by financial institutes to safely handle the transfer of cryptocurrencies.
A lot of paperwork is involved in real estate transactions, which again, makes the process a lot complicated and time-consuming. You can please your customers by incorporating blockchain technology, which can make property transfers hassle-free. It also improves safety by ensuring a more accessible means for verification and ownership transfers. Minimum paperwork and faster transfers will also enhance the reputation of your real estate business.
We all learned our lessons during the pandemic and lockdown, which created a huge waste of resources due to disruption in the supply chain. Lesson learned; we need to employ a more efficient supply chain to prevent such scenarios in the future. Blockchain can help in that. Using the technology, one can trace product transfers right from scratch to deliveries without delays, increased costs, or errors committed by the people involved. One can also trace the entire product trajectory from its source to the customer’s doorstep seamlessly through blockchain applications.
What are smart contracts? Well, these are some predetermined programs on a blockchain network that only run when the conditions are met. Any agreement can be automated using the smart contract, which means that no intermediatory will be needed. Smart contracts can be very useful in real estate investments, money lending, insurance companies, and so on.
The development of a country is dependent largely on a secure voting system. With blockchain technology, the government can secure voting systems, so that they cannot be tampered with. Not only the government but also companies can make use of blockchain voting to ensure nobody votes twice or try to mess with the system. It also reduces the hassles of voting in developing countries by digitizing the entire system. Once this happens, can you imagine how many problems can be solved?
Blockchain can also find widespread applications in art by ensuring artistic copyrights, ownership, and royalties. In healthcare, it can secure medical information critical to organizations or individuals. In other words, this technology is no less than science fiction, where everything can be securely automated, tracked, and monitored.
Also Read: Top Blockchain Development Companies in 2023
Cryptocurrencies are decentralized digital currencies that are highly secure and cannot be double-spent. Bitcoin, Binance USD, Ethereum, Cardano, Solana, and all other digital currencies have one basic aim – to reduce the hassles of transactions.
Crypto transfers are low-cost and high-speed, thus enabling faster money transfers across national/international borders. Thus, it constitutes an amazing payment system for small businesses, individuals, or large-scale enterprises.
Bank accounts can be ceased or frozen at the bat of an eyelid. But a crypto wallet is censorship-resistant, which means, no one but you can access it. Hence, in certain mishaps, like a frozen bank account, you can get an alternative source of wealth in cryptocurrencies.
Anyone with an internet connection can invest in early-stage start-ups, thanks to crypto. A new digital token can be exchanged for more established cryptocurrencies, the former acting as a proxy to measure the success/failure o the start-up. Previously, such options were available only to venture capitalist firms, but now, thanks to cryptocurrency, anybody can become an investor.
People can use Bitcoins or other established cryptocurrencies to pay their bills, make mobile recharges, and for other day-to-day applications. One can send such cryptocurrencies to their family members or relatives in developing countries to help them financially.
If cryptocurrencies start being used widely, a lot of financial problems can be solved within a jiffy. From giving crypto rewards to customers to traveling the world, these digital currencies go way beyond reshaping the entire financial scenario of the globe. The conversion of cryptocurrencies into local currencies can help travelers worldwide. So, you see the real picture here?
In the future, Blockchain will be disrupting a range of business sectors, besides banks and financial institutes. That time is nearing, when blockchain will be at the core of every industry, securing its businesses, speeding up transactions, protecting customer data, handling emergencies, and so on. In recognizing this trend, funding in blockchain start-ups increased by 713% and reached $25.2 billion in 2021. Besides banking, blockchain will bring major upheaval in these industries:
The primary motive of crowdfunding is making anyone (who wants to be) an investor. Blockchain is set to disrupt this industry by helping these investors directly fund entrepreneurs and people in the creative line of work with innovative ideas that they want to establish. Do you know blockchain crowdfunding has already funded a major feature film? Yes, BRAID is that film financed through a “crowd sale” on an Ethereum blockchain network. It debuted at the Tribeca Film Festival but here’s something else. By far, there is no information about the investors getting their money back. But it was done, and that itself proves blockchain’s capability to disrupt the crowdfunding sector.
Blockchain can transform the supply chain drastically, ensuring faster deliveries and exceptional customer services. The technology can be used to trace the supply chain right from the product source to its delivery. This means that if the product you receive is defective or wrong, the owner can go through the entire trajectory to find out where exactly the supply went wrong. If it is a food product, the owner can trace it right from the manufacturer, through the retailer, and ultimately to you. As this tracking process with the help of blockchain is transparent and verifiable, issues like this can be resolved faster and more efficiently.
Blockchain can help improve cybersecurity on so many levels. Data breaches are one of the biggest possible threats for companies and individuals right now. You do not want your customers’ data to fall into the hands of the wrong person, right? Using blockchain technology, you can protect your data even on cloud storage, thus ensuring high-level security in your business processes. Further, blockchain is a decentralized system, which means that all information stored in the chain is verified and protected by cryptographic algorithms, making tampering almost impossible.
Centrally-located medical information can be accessed and altered as and when one pleases. With blockchain technology, this can be reduced to a minimum. As all the medical information will be stored in a decentralized system, accessing it will require permission and tampering, well, it will be impossible, as the original data will be available to everyone on the network. No hacker will be successful in corrupting medical information, which is both private and critical to an individual or organization. United Healthcare has already incorporated blockchain to increase the security of medical data. Soon, there will be other healthcare organizations joining the bandwagon, thus disrupting the entire industry.
Some other industries that will be disrupted by this futuristic technology are transportation, real estate, automobile, energy, non-profit sectors, retail, etc. That day isn’t far when blockchain will form the basis of all business processes worldwide.
So have you included blockchain in your list of business incorporations yet? Think about it!