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Aria Barnes
by on May 2, 2021
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Many people associate blockchain with the cryptocurrency, Bitcoin. Yes, it is true that it was the success of Bitcoin that gave the world an insight into blockchain technology. But Bitcoin is just one example of a blockchain application. Many other sectors can greatly benefit from blockchain technology. Businesses, in particular, could take advantage of this technology to lower costs and increase liability.

As the Bitcoin blockchain and other cryptocurrencies struggle in a highly volatile environment, interest in Blockchain technology itself has exploded. It has extensive practical use across all industries due to which development stats say that the global Blockchain market will reach 42.3 billion by 2021. Blockchain has myriad advantages for businesses, and therefore there is an urgent need to take advantage of it. 

Here are the benefits of blockchain development for businesses.

What are the Advantages of Blockchain Technology for Companies?

According to the top ethereum app development company, the basic advantages of Blockchain technology are decentralization, transparency, security, and immutability.

  1. Blockchain technology allows verification without having to rely on third parties.
  2. The data structure in a blockchain is just for aggregation. Therefore, the data cannot be modified or deleted.
  3. It uses protected cryptography to secure data records. Also, the current ledger relies on its adjacent full block to complete the crypto process.
  4. All transactions and data are attached to the block after the highest confidence verification process. There is a consensus of all ledger participants on what will be recorded in the block.
  5. Transactions are recorded in chronological order. Therefore, all blocks on the blockchain have a timestamp.
  6. The ledger is distributed across all nodes of the blockchain that are the participants. Then, it is distributed.
  7. The transactions stored in the blocks are contained in millions of computers that participate in the chain. Therefore, it is decentralized. There is no chance that the lost data cannot be recovered.
  8. The transactions that are carried out are transparent. The people who are given the authority can see the transaction.
  9. The origin of any ledger can be traced along the chain to its point of origin.
  10. Since multiple consensus protocols are required to validate entry, the risk of duplicate entry or fraud is eliminated.
  11. With smart contracts, companies can present conditions on the blockchain. Automatic transactions are activated only when the conditions are met.

Precautions to Take When Companies Invest in Blockchain Technology:

All companies that are interested in investing in blockchain technology must first carry out a strategic evaluation to see if it is really feasible for their business model and then hire app developers. Many companies may not see a return on their investments in the first few years. Any unstructured implementation of blockchain technology can lead to strategic failures.

Therefore, it is recommended that companies conduct granular assessments at the use case level to determine which application can be induced with blockchain technology. The points where it can be applied must be identified and its impact evaluated with specific use cases. A correct strategic approach is what is needed to take advantage of the maximum benefits of blockchain technology.

Industries Where Blockchain Technology Can be Applied:

Blockchain technology can be applied to practically any industry. Agriculture, banking, healthcare, education, e-commerce, property, mining, retail, transportation and logistics, media and entertainment, automotive, and the list goes on. A thorough understanding of its implementation will lead to areas where it can be applied and in what way.

Blockchain Architecture for Companies:

The blockchain architecture includes public and private options. In the public option, anyone can join and read. The blockchain in the public can be secured by allowing only authorized participants to write. In a private blockchain ownership model, only authorized participants can join and read. Also, in this case, the write option can be reassigned only to a few. The type of blockchain architecture will depend on the type of business and the area where it will be implemented.

How Can Companies Take Advantage of Blockchain Technology?

Now that we know the benefits of blockchain technology, let’s see how it can help businesses.

Blockchain technology is mainly used to store records and transactions. The ledger can contain static or negotiable information.

1. Static record:

Here, the ledger consists of records that are stored for reference purposes. Take, for example, property titles. There are many cases of ambiguity in title ownership. With blockchain technology, records once stored cannot be altered. All changes are timestamped. In case of dispute, the title can be traced through the route of origin. The other places where it can be used are patents, research papers, and source and food safety ledgers.

2. Identity:

This is similar to static registration. But this forms a separate case due to the stored identity-related information. The segments where it can be used are for identity fraud, voting, civil registration, police records, and court cases.

3. Smart contracts:

Here, a set of predefined conditions must be met if the transaction is to be validated. When the conditions are met, the actions are activated automatically. Say, for example, in the payment of the insurance claim. The insurance provider can set the conditions that must be met for insurance claims. The amount is transferred only if the consumer’s claims meet the conditions set out in the contract. Other areas where it can be implemented are music releases, cash stock trading, etc.

4. Dynamic registration:

The ledger, in this case, keeps updating as goods/services are exchanged on the digital platform. The best use case is in a drug supply chain. The drug supply can be mapped from the manufacturer to the distributor and finally to the pharmacy. Updates provide information on the movement of drugs and this can be used to stop the supply of counterfeit drugs on the market.

5. Secure payment transactions

Financial transactions are the most popular Blockchain applications. Technology is the backbone of all cryptocurrencies. Small business owners can avoid middlemen and high transfer fees charged by banks. Above all, the transaction is recorded on the Blockchain networks and the code is seen by everyone as evidence.

6. Cloud storage

Your business can leverage Blockchain for fast and affordable cloud storage. Blockchain enables the storage of data and digital assets without the need for a server farm, and commonly uses a private key. You can use other people’s hard drives to share data with the world. A Blockchain farmer rents hard drive space, while tenants pay to use it. All information stored on the network is encrypted.

7. Prove provenance

The provenance proves the ownership of the assets or intellectual property through a traceable data system. In Blockchain, the buyer and seller do not need different ledgers of transactions when assets change hands. Both parties can share a ledger that is automatically updated after each new deal.

8. Digital identity

Fraud is now rampant in the financial world and in many other industries. Businesses are turning to Blockchain technology as a reliable fraud protection measure. Blockchain solutions facilitate the monitoring and management of digital identities in access authentication.

9. Accounting

It is much safer to use Blockchain applications instead of standard ledgers. It eliminates human error in all accounting activities and makes it impossible for scammers to tamper with the data.

10. Supply chain management

In the supply chain, Blockchain solutions reduce costs and make it easier to track the movement of goods. This creates transparency in the ecosystem and simplifies payments and other transactions.

11. Greater transparency

Although Blockchain’s biggest selling point is its security and privacy potential, it also has greater transparency in business operations. From contracts to financial transfers to accounting, everything is done on a central platform, leaving a clear audit trail.

12. Quality assurance

If there is a problem in the supply chain, Blockchain solutions can help you trace its point of origin. You can then take the necessary actions to avoid downtime in your business.

13. Power supply

Blockchain technology can be used to track energy expenses in your establishment. Renewable energy use is typically controlled with tradable certificates, the efficiency of which has been a bit disappointing. Blockchain solutions can breathe a new level of effectiveness in this task.

Finishing up 

This brings us to the end of our Is it healthy to invest in BlockChain topic. Now that you know the importance of blockchain technology, you can make suitable decisions about whether you want to use this technology or not.

Blockchain is a revolutionary technology with a great impact in all sectors. My focus was only on the main impacts so that you can network and understand their advantages.

The next smart move for you will be to hire blockchain developers in India and get your job done the best possible way. 

Till then, that’s all folks!

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