For new development, blockchain is considered an important tool for digital transformation. Blockchain use can integrate all business operations under one platform, allowing seamless connections with different functions in the organization to work efficiently and effectively. It’s important for companies to adapt to the ever-changing market dynamics. Blockchain is one such technology that the companies are using to disrupt the competitive market dynamics where they operate.
Blockchain born in the year 2009 has since seen its implementation in almost all the business units. There are certain apprehensions of blockchain but it has still emerged as the winner around the world. The world has seen a rise in blockchain startups that are attempting to change every-day user needs and rendering platforms to the companies that need help in the development of blockchain.
Reason Behind The Interest Of Businesses In Blockchain
While there are numerous reasons for companies adopting new technologies, one of the most important reasons is that they need to gain a competitive edge in the market. At the same time, businesses also want to provide value for money to their customers. With blockchain technology, things get easier.
Here are some of the prime features which can help in the growth of your business:
- Peer-to-peer interaction (removing need for trusted party involvement)
- Traceability
- Immutability
- Data Security
- Transparency
Areas Where Blockchain Is Useful
Supply Chain Management:
No matter what is the size of the business, whether it is small, medium, or large, it is necessary to have efficient supply chain management. It is an integral aspect of any business growth plan. It ensures that the product reaches its destination on-time and also guarantees the authenticity of the product. When you integrate blockchain, all data exchanged is stored securely with a time-stamp and enables real-time tracking of inventory flow to timely clearance of purchase orders.
With the integration of the product with Blockchain ledger, the tracking of the origin of the product and the journey of it gets easy for the people who are in the system. To know the history of a particular product the consumers can use blockchain and QR codes. Last year, the World Wildlife Fund launched a blockchain-based tool that allows anyone to track the food origins.
Data Storage and Security:
The most authentic feature that a business can offer to a consumer is the security of their personal data. The world is getting digital now and therefore the need for a secure platform is a must. There are still a lot of people who do not prefer the digital medium because of the fear of hacks. With the use of blockchain, business firms can easily answer the problems of consumers. Blockchain makes data storage cryptographical, making any alteration to the data stored in blockchain impossible.
Internet of Things:
The smart devices with IoT have a vital role to play in our regular lives, and when it gets integrated with the blockchain technology then things take a roll. The integration enables the users with an advanced home security system that is manageable using a smartphone from a remote location. The company of media and telecommunication business which provides home solutions has implemented security of biometric and blockchain for ensuring that none of the people can manipulate the data that are being captured from smart devices.
For improving security, sensitive information is stored on the blockchain such as facial recognition, voice recognition, biometrics. Even the transactions get faster and cheaper with blockchain technology because of its distributed nature.
Closing Remarks
Digital transformation is no longer a choice for businesses – it is essential to survival. Due to the increased strain that the COVID-19 pandemic put on day-to-day business, there is a dire need for corporates to accelerate their digital transformation process to emerge stronger than before. Blockchain technology is very likely to make the most transformative and dramatic changes in the way businesses function, during the coming years.
In the near future, we will also see governments accepting blockchain, and use it for improving public and financial services.
