Blockchain is poised to revolutionise the way businesses make transactions. In an increasingly interconnected digital global network of people, businesses and devices, how can we ensure the future security of the digital economy?
Blockchain technology may hold the answer.
Many people associate blockchains with Bitcoin, the cryptocurrency that recently tipped over $10,000 in value. Its blockchain structure is what validates and values the mysterious currency, allowing it to thrive without the backing of governments or institutions.
However, while Bitcoin may not be the most attractive model for businesses to conduct their transactions in, the fundamentals of blockchain have the potential to help businesses in many markets work smarter and faster. The technology is still new, but the potential impact it can have on business is exciting, and immense.
Every business is ultimately based on a series of transactions. When these transactions are sent through third party intermediaries, the process can slow down and be exposed to risk. This is where blockchain technology can help.
What is blockchain?
A blockchain is a reliable, difficult-to-hack record of transactions – and of who owns what. Blockchain is based on distributed ledger technology, which securely records information across a peer-to-peer network. Blockchain ledgers can include land titles, loans, identities, logistics manifests and almost anything else of value.
A blockchain records data across a peer-to-peer network. Every participant can see the data and verify or reject it. Approved data is entered into the ledger as a collection of “blocks” and stored in a chronological “chain” that cannot be altered.
Benefits of a blockchain
Blockchain technology allows you to simplify and optimise complex transactions by making data sharing fast, transparent, yet completely secure.
Blockchain is a true peer-to-peer network that will reduce reliance on some types of third-party intermediaries – like banks, lawyers, and brokers.
Blockchain can speed up process execution in multi-party scenarios – and allow for faster transactions that aren’t limited by office hours.
Information in blockchains is viewable by all stakeholders and cannot be altered. This will reduce risk and create trust.
Distributed ledgers will provide quick ROI by helping businesses create leaner, more efficient, and more profitable processes.
The distributed and encrypted nature of blockchain means it will be difficult to hack. This shows promise for business and IoT security.
Blockchain is programmable – which will make it possible to automatically trigger actions, events, and payments once conditions are met.
Investing in this technology early is going to give businesses an advantage as this emerging technology takes off. This means ensuring that you have the expertise on hand to adapt your current models and manage peer-to-peer networks moving forward.