What Is The Future Of Blockchain And How Should Companies Use It
Following a panel on blockchain and cryptocurrencies held on Feburary 27, Patricia Connolly, Executive Director of the Raj and Kamla Gupta Governance Institute at Drexels LeBow College of Business, and Richard Godwin, Blockchain Strategy Lead at SEI Investments Company, help bring clarity to blockchains mystery.
Blockchains potential to disrupt various industries and ultimately, the economy, has many people talking. The technology could conceivably change the way transactions both financial and logistical are processed. Its important to understand the underlying technology in order to consider blockchains future applications.
The term blockchain is everywhere these days. From its architectural benefits to its use in cryptocurrencies like Bitcoin, blockchain is gaining traction, making it imperative for industries, executives, and regulators to gain a fundamental understanding of the technology and its possible applications.
What is blockchain, and how can it be utilized?
What can be done to ensure companies and their boards are aware of blockchain?
Connolly also encourages boards to utilize their organizations chief information officers, if they have one. Inviting CIOs into the boardroom for regular conversations about current and future blockchain opportunities will help board members hear firsthand about the companys plans for emerging blockchain applications, as well as build buy-in from company leadership.
Ideas For Blockchain Businesses In Human Resources
Blockchain has an inherent structure that makes it suitable for adoption by human resource departments and firms. Tracking applicant history, monitoring employee progress, and making hiring more efficient are all reasons that large corporations would want to hire blockchain specialists.
When mulling over business ideas, think about implementing these HR blockchain solutions to solve big problems for bigger businesses.
What Is Blockchain Technology And How Does It Work
Blockchain technology is a public digital ledger that records transactions across several computers within a network.
Every transaction in the digital ledger requires its owners digital signature to authenticate and protect the transaction from tampering.
In simple terms, the ledger is like a Google spreadsheet that keeps actual purchases transactional records. While anybody can access the data, no one can change or alter them, keeping the data safe.
Also Check: Is Every Crypto Trade Taxable
How Does Blockchain Work For Data Security
Blockchain is a possible solution to giving customers peace of mind over their data.
Every couple of months, you hear news stories about companies experiencing customer data leaks.
- identify theft
After all, data is valuable.
Every time we search on Google, buy an item on Amazon, or double-tap on an this information is tracked because its valuable.
The high level of security offered by this technology allows companies to establish a secure data network to record and store consumers data.
However, you cant delete this data. Once its recorded in the chain, its there forever.
While this means you wont be able to pick what data is recorded, blockchain does have the potential to allow users to decide what data to share and with whom.
Cutting Out The Middleman
Professionals working in banking, contracts, settlements, or any business process that involves being a third party to a transaction may be affected by the increasing adoption of blockchain.
Blockchain cryptology replaces third-party intermediaries as the keeper of trust. By using mathematics instead of intermediaries, blockchain can help reduce overhead costs and hassles for companies or individuals when trading assets.6
If you work in this field, it would be wise to arm yourself with an in-depth understanding of cryptocurrency assets, which are created, stored, transferred, and verified on blockchain, to harness the potential they offer.
Read Also: What Is The Safest Way To Buy Bitcoin
Track Shipments In Real
It used to be difficult to keep track of a shipment’s exact location between shipping facilities. Blockchain networks use nodes to automatically ping your shipment and receive real-time updates on its location. Blockchain shipment tracking businesses monitor this information and allow customers to track their shipments on-demand.
- Example: XYO Network
Make Rideshares Safer And More Efficient
Rideshare can be exploitative to drivers who work long hours and still pay self-employment taxes on their earnings. Some companies strategize that using blockchain to empower community-owned rideshare networks will give more power and freedom to drivers.
These businesses operate as cooperatives with member buy-in from riders and drivers. A blockchain keeps dedicated records on both parties to ensure transparency for driving records and past ride reviews.
- Example: Eva
Read Also: How To Buy Shiba Crypto
What Are The Risks And Challenges Of Blockchain Adoption
Adopting blockchain for serious enterprise use carries above-average risks of choosing the wrong platform, incurring project cost overruns and delays, and failing to achieve positive ROI.
“There is still a lot of risk averseness and a reluctance to do something differently,” Bennett said. “People are prepared to continue with suboptimal processes simply because they know what they need to do even if it’s cumbersome, and they don’t want to take the leap.”
Other common blockchain challenges include the following:
- Lack of adoption: Blockchain, especially public blockchain, requires a large number of participants for most of its benefits to be realized. Until more companies are willing to take the leap and try out blockchain, those that do are likely to find a small universe of trading partners waiting for them, according to market researchers.
- Skills gap: Blockchain know-how is in short supply, though that’s rapidly changing as training and certification rises along with the demand — and salaries — for blockchain developers and engineers.
- Lack of trust: Blockchain is still so new that many businesses won’t have confidence in its unfamiliar security and data-integrity mechanisms. In response, they’ll want to control the system in a private blockchain but will lose some transparency and data redundancy in the process.
Ideas For Finance Blockchain Businesses
Blockchain was developed as a system for secure cryptocurrency transactions. Its applications across industries mirror these origins by using the same model of distributed ledgers linking different data.
Cryptocurrency’s cultural prominence today means it’s more possible than ever before to start a finance-focused blockchain business.
You May Like: Where Can I Use My Bitcoin
Why You Should Consider Using Blockchain For Your Startup
Although it can be exciting to form a planning business, there will be significant demands on you as a small business owner. Here are some of the things you can expect.
Fortunately, blockchain technology and ledgers have plenty of value outside cryptocurrencies. Using blockchain technology in your business could be right for you if:
Youre primarily a business that manages or provides access to data and information
You need to verify, prove and audit the data you hold
You need to provide data to third parties
Blockchain technology makes a better solution for you than a customized database, software as a service or similar application
Software applications that you develop and use across the blockchain are known as Distributed Applications or DAPPS.
Applications For Blockchain In Your Business
Ever since Satoshi Nakamoto published an invention he called bitcoin in 2009, cryptocurrency has had its ups and downs. More recently, however, people have looked beyond bitcoin as being a controversial currency used for nefarious black market activity and into the endless possibilities that it presents. At the forefront is the public ledger that records every bitcoin transaction known as a blockchain.
The blockchain is now an exciting new alternative to traditional currency, centralized banking, and transaction methods that is not only changing the way we handle financial transactions, but also alternative uses that will change the world. In short, blockchain is a distributed ledger that maintains a continuously-growing list of every transaction across every network distributed over tens of thousands of computers. This makes it almost impossible to hack, changing the way banking is done.
In my opinion, it will even change the way that you run your business from day-to-day which include the following five applications.
You May Like: What Is Crypto Credit Card
Working Your Way With Uncertainty
The future of blockchain regulations is still very much uncertain. This is why it is important to follow up with the revision of these regulations and to be deliberately involved in the making of these policies.
These policies vary from country to country and you should endeavor to influence the policymakers in your country to work towards increasing the use of the blockchain industry.
Blockchain Offers Greater Transparency And Accountability
The biggest benefit is its transparency. The transaction ledger is open to public viewing, which adds a layer of accountability.
It ensures businesses have to act responsibly and with integrity when using consumers data.
No matter your company size, its not always easy to gain trust. People are naturally skeptical about the information online, especially in the era of deepfakes.
As a result, transparency has a major impact on consumers purchasing decisions.
Recommended Reading: What Is The Best Cryptocurrency Exchange
Blockchain Businesses And Cryptocurrency
Its likely that youve heard blockchain mentioned in the same breath as cryptocurrencies like Bitcoin. While blockchain is the underlying technology that powers cryptocurrencies, blockchain has far wider utility and more use cases than virtual money. We recommend staying away from cryptocurrency-related blockchain businesses for several reasons:
Many cryptocurrencies have no inherent value, meaning that any changes in price are purely speculative and based on demand, rather than the revenue or profits generated by a well-run, underlying business
The Securities and Exchange Commission in the U.S. and other regulatory agencies around the world are putting more controls in place around cryptocurrency assets
Many cryptocurrencies have no inherent value, meaning that any changes in price are purely speculative and based on demand, rather than the revenue or profits generated by a well-run, underlying business
This combination of a lack of trust and legitimacy, unpredictable valuation and finances, increasing regulatory controls and speculation means the cryptocurrency marketplace isnt a reliable way to build a blockchain business. Instead, we recommend building and using business blockchain applications that have utility and value outside virtual currency.
Tailoring Blockchain Business Idea For Scalability
Integration of short-term and long-term blockchain business strategies on the initial strategy is essential. Finding a way of integrating the two is a sure way of enjoying the full benefits of the ledger technology. For example, a pharmaceutical company can use technology, in the short-term, to reduce product loss as well as shipping time, therefore, increase success rates.
To scale in future, the pharmaceutical company could configure its blockchain business model to partner with patients with a view of commercializing their data for drug research. While the short-term solutions wont be industry changing, the long-term strategy would allow the pharmaceutical company to scale, thereby establish industry dominance.
For all those who dont know how to build career in enterprise blockchains, heres an ultimate course all of you must enroll in: How to Build Your Career in Enterprise Blockchains
You May Like: Can I Buy Cryptocurrency On Fidelity
Blockchain For Real Estate
Blockchain applications can solve many problems real estate is facing, including severe lack of transparency and liquidity, high fees and pricing commitments, and low transaction speed. Having smart contracts and tokenization along with the technologys key benefits on offer, blockchain current uses in real estate allow the democratization of the industrys properties. Here are some uses of blockchain technology in the industry:
Get To Know Your Customers Better
Blockchain facilitates reliable identity management. Your customers and your employees have digital IDs that make it easy to verify their identity. If this information is stored on a blockchain network, it reduces the risk of identity theft, money laundering, fraud, and other cybersecurity concerns.
As the information on the blockchain cannot be changed, it allows people to take control of their personal data. Clear transaction records also help you and your customers to see how your relationship has progressed over time. With blockchain technology you can identify loyal customers, learn more about their spending patterns, and steadily build your customer base.
Don’t Miss: What Is Blockchain Good For
Blockchain Use Cases In Real
Blockchain use cases tend to cluster in industries that are deep-pocketed and have tech-savvy market leaders who can make the business case for, then implement, blockchain business applications, which typically require substantial coordination and transactions among numerous partners or even competitors.
Examples of sectors that are finding uses for blockchain include the following:
Supply chain. Blockchain expands the number of suppliers and buyers and ensures the integrity of data passing through the supply chain, thereby getting closer to the elusive goals of supply chain visibility and transparency
Banking and finance.Blockchain use cases in finance fall into two distinct segments: cryptocurrency and decentralized finance, or DeFi. Cryptocurrency is gaining credibility as an alternative payment mechanism in a world monetary system that is largely run by government central banks and big payment providers, such as Mastercard and Visa. At the same time, DeFi is emerging as a potential replacement for other processes traditionally handled by banks and financial service providers, namely credit, insurance, banking and investments. By using smart contracts, individuals might be able to lend each other money, pay interest, insure against loss and trade asset derivatives.
Increasing Efficiency And Speed And Reducing Disruptions
Emerson, a multinational manufacturing and engineering company, has a complex supply chain. It involves thousands of components across many suppliers, customers, and locations. Michael Train, the president of Emerson, told us that such supply chains often have to contend with long, unpredictable lead times and lack of visibility. As a result, a small delay or disruption in any part of the supply chain can lead to excess inventory and stock-outs in other parts. He believes that blockchain could help overcome these challenges.
Heres a simple illustration of the problem and how blockchain could address it. Consider product A, which uses components C1 and C2, and product B, which uses components C1 and C3. If the manufacture of product B is held up because of a disruption in the production of component C3, the optimal move is to temporarily allocate inventory of C1 to product A until the disruption is resolved. However, if all products and components are manufactured by different companies with limited visibility into one anothers inventory, what could easily happen is that excess inventory of C1 piles up at the company making product B even if the maker of product A has a stock-out of C1.
Don’t Miss: How To Make Money Off Of Cryptocurrency
Business Industries Ideally Suited To Blockchain Applications
If youre in one of the following sectors, theres a good chance youll get value out of a blockchain application. Here are some ideas of how blockchain can be used in these industries:
Recording medical and patient details in the blockchain, including medical records, diagnostics and other information
Capturing and sharing details of property listings, transactions, contracts, funding and similar details
Supply chain startup businesses
Gathering information on raw materials, parts and products capturing handoff of goods through the supply chain providing details of contracts, documentation, shipping and payment processing to suppliers and third parties
Capturing policy details, managing claims or making payments
How To Prepare For A Blockchain
When it comes to upgrading your existing business by harnessing the power of blockchainor starting a new startup, it is always recommended to contact the best blockchain app development company. This is so because the technology is still in its novice state and can bring forth various hidden challenges and barriers that could be difficult to tackle without prior experience. Implying, it can be nearly impossible to look into the importance of blockchain in business process without support of the experts. So, do not overlook this fact. Contact a reputed blockchain development firm with expert blockchain app developers for blockchain business development and make the best use of blockchain for business strategy and growth.
Recommended Reading: How To Run Crypto Ads On Facebook
Help Patients Access Medical Records
It’s not uncommon for patients to change doctors, but it is common for medical records to become lost or untraceable if not converted to digital documents. Blockchain is capable of securely storing patient medical records and making them accessible to any of the patient’s physicians with granted permission.
Because blockchain is decentralized, patient records would be securely distributed across countless servers so the risk to their personal information is minimal .
- Example: Guardtime
How Does Blockchain Work
Most of blockchain’s key attributes come from being a type of distributed ledger technology . Ledgers have been used for centuries to record financial transactions, in recent decades in digitized form in ERP and other business software.
In contrast to those centralized approaches, DLTs distribute copies of the ledger to the nodes on a blockchain network, making each one responsible for recording new transactions and participating in a consensus mechanism to agree on updates to the ledger.
Blockchain’s unique data format is another differentiator and what makes it a particular kind of DLT. Traditional databases store data in rows, columns and files, while blockchain stores it in blocks that are linked together and protected by cryptography.
The data block and transaction-verification mechanisms make it nearly mathematically impossible to hack a blockchain to change data or disrupt transactions. There’s no central authority for malicious actors to target, no one player who can take data private or change the rules without agreement, or whose failure can bring the whole network down. The multiple copies provide data redundancy and transparency.
Recommended Reading: What Apps Can I Use To Invest In Cryptocurrency
Trade Online Advertising Space
AI is popular in advertising to forecast consumer preferences. Acting on those preferences can be difficult for a company if it doesn’t have access to the right advertising space.
A blockchain company that uses AI to determine the best advertising space instantly records a transaction to purchase that space. Better yet, AI can work within a blockchain to trade advertising space between clients in the event of a new product launch or an unforeseen need.
- Example: Thrive
Make Faster Cheaper Payments
Blockchain had its start in Bitcoin. So it shouldnt be a surprise that Bitcoin and other cryptocurrencies can be used to pay your employees. Making crypto payments on the blockchain is especially beneficial when you have international and/or remote workers. Blockchain allows you to compensate your workers in less than an hour without the outrageous transaction fees associated with traditional banking systems or remittance services.
Paying employees using cryptocurrency may even help you save money in other ways. Having records of your transactions on the blockchain makes it easy to track your cash flow and keep track of all your payments. So youll never overpay on your taxes and youll have nothing to fear if the IRS comes knocking.
Read Also: What Is The Price Of Bitcoin Gold