Since digitalization has taken massive leaps, new technologies have been introduced in financial institutions to improve business processes mainly by delivering the same results, but faster and safer!
Blockchain development technology is one of them. It is different from previous technologies — an exchange of value. Blockchain technology is an emerging technology that has new ways of organizing economic activities by reducing costs and time associated with intermediaries and strengthening trust in an ecosystem of actors.
First outlined by Stuart Haber and W. Scott Stornetta, Blockchain improves our life significantly as it ensures transparency, carries small transaction costs, facilitates smart contracts and Internet of things. The technology behind Bitcoin that assures to improve efficiency in numerous processes, plus create new business opportunities. Industries like financial services, banking, healthcare, energy, education, and many more are speeding to adopt Blockchain development services.
What is Blockchain?
Blockchain is the technology that records information in a way that makes it difficult, in fact near to impossible to change, hack, or cheat the system. It is a digital ledger of transactions that is duplicated and distributed across the complete network of computer systems on the blockchain. Its database is different from regular databases as it stores information in a chained series. The initial idea behind the creation of Blockchain was a system where documents and information could be stored without the risk of being tampered with. However, the release of bitcoin in 2009 gave a new importance to blockchain technology.
Blockchain consists of many blocks. As more and more people are added to the blockchain transactions, their transactions are added to the blocks’ series. These blocks are highly secured and considered to be impossible to alter or hack. A ledger is maintained for each of these participants in a decentralised database, known as the Distributed Ledger Technology.
Incorporating Blockchain into your business
Blockchain enables a business to buy or sell anything they’d like to anybody around the globe without anyone in the middle imposing rules or fees on them. It creates transparency, so the hope for society and the average consumer is that it will give us a new level of freedom and empowerment.
Incorporating Blockchain technology into your business allows your customers to be anonymous, public, private or whatever they want.
The reason why the Blockchain has gained so much praise is that:
- Cannot be Corrupted- Every node on the network has a duplicate of the digital ledger. This promotes transparency and makes it corruption-proof
- Decentralized Technology- The decentralized network eliminates governing authority or a middleman from the framework
- Enhanced Security- As it is not a centralized system and fully encrypted, it enhances the security and transparency for the users
- Distributed Ledger- The distributed ledger technology of Blockchain records data transactions in chronological order
- Consensus- The consensus algorithms of Blockchain are at the core of the cleverly designed architecture to help the network make decision
- Faster Settlement- Blockchain offers a faster settlement as compared to traditional banking systems to save the time of users in the long run
We believe in the potential of the blockchain and we believe that the majority of the businesses are adopting it. However, it doesn’t mean that every business needs to have it in the first place. Don’t decentralize just to join the herd.
Different ways Blockchain can transform traditional business
- Management and operations
Blockchain helps the management and operations of a business with the use of private, validated, and shared ledger. Smart contracts being an essential part of Blockchain technology, automatically execute business agreements. Blockchain upgrades the level of trust between parties in the business network, enabling participants to work together without any additional guarantees. When individuals representing different companies need to work together, lack of trust makes the collaboration difficult. Blockchain builds trust and can bring benefits to the processes across multiple organizations.
Blockchain technology is transforming how companies do business in other industries, too. The technology is building operational capabilities and new opportunities even in emerging markets whose hyperinflation, political uncertainty, and corruption long have frightened away entrepreneurs.
Accounting is a textbook illustration of a field that can benefit from blockchain technology. Since accounting is full of challenges from complex tax code to the paramount need for accuracy and precision, Blockchain resolves all of these issues. Blockchain enhances transparency and reduces the time auditors spend sampling and validating transactions. By having extra time at hand, auditors could concentrate on controls and other important tasks.
- Human Resources
Human resources experts are accountable for planning, interviewing, recruiting, and hiring new staff. They work with officials on strategy planning and often manage training, benefit, and compensation duties. In human resources, blockchain could be used to improve hiring by empowering HR experts to instantly verify the credentials given by job candidates and even existing employees. Also, the blockchain prevents third-party companies from providing fallacious data about the candidates.
Blockchain-based systems also make an impact on payroll, especially in multinational corporations and businesses working across countries. The technology simplifies and standardizes payments in different currencies, replacing the traditional way of companies compensating employees. It can improve how workers are saving for retirement and help companies take better care of their employees.
Blockchain technology can help significantly diminish so-called “click frauds,” allowing the marketing executives to reach their targets.
By employing the system to manage budget spending, remove intermediaries and prevent fraud, the risk of overcharging and underperformance is reduced.
By directly connecting brands and influencers, Blockchain enables the deployment of authentically branded campaigns in a swift and scalable manner.
Blockchain is a gateway to huge amounts of data which enhances law firms’ strength to find strong evidence or contradictions in the case.
Smart contracts could also help, facilitating automatic transfers of assets once certain requirements are met. Disputes could be addressed directly and very efficiently, saving judges, lawyers, and clients a lot of time. Blockchain could also bring an end to the escrow accounts, where legal firms hold the money until the previously specified conditions are met.
In the past couple of years, Blockchain technology has created a new pathway for development and has given companies a new approach to make their business operations more efficient. There is hardly a day when the media doesn’t talk about this technology. Whether you are into finance, health or even transportation, blockchain development services can offer your business more efficient operations and provide better services. To know more about Blockchain and its applications feel free to schedule a call with one of our blockchain developers.