Does a Decentralized Technology Model of a Blockchain Match Your Business?


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Does a Decentralized Technology Model of a Blockchain Match Your Business?

According to Market Study Report, the global blockchain market was worth $708 million in 2017. It will grow to $60.7 billion by 2024. While it might seem that blockchain software solutions can only be used for financial transactions, there are many other uses cases. It can be used in healthcare, banking, supply chain management and agriculture.

What is Blockchain Technology?

Blockchain technology is a digital public ledger that records transactions across multiple computers (chains) within a network.
To authenticate and protect transactions in the digital ledger, the owner must digitally sign each transaction.

The ledger can be described as a Google spreadsheet. It keeps transactional records for actual purchases. The data can be accessed by anyone, but no one can alter or change them. This keeps the data safe.

Benefits of Blockchain for Businesses

Small businesses must always be able to offer better customer service and efficiency. These are just a few of the many benefits that blockchain app development technology offers small businesses. They can help you raise capital or conduct transactions seamlessly.

Many small business owners might think such technologies are only available to large companies with expensive developers. However, the truth is that they can be as accessible as anyone.

Venders have created ways for small and large businesses to use blockchain technology. Blockchain technology isn’t limited to businesses that are digital-first, or only present online. Blockchain tech can be used by nail salons, restaurants and collision centres, as well as boutiques, bakeries, shops, and other small businesses that are located in physical stores.

Able to Leverage Smart Contracts

Small businesses will love the fact that blockchain technology allows for self-enforcing smart contracts. All transactions and contracts are saved directly to the blockchain ledger. This means that contracts can’t be altered or modified once they are recorded. Smart contracts can include agreements with suppliers and vendors, employee contracts, commercial leases, and other types of agreements.

Small businesses can also benefit from the contract’s protection that they might not otherwise be able. This will reduce your costs and eliminate the need for attorneys. Ethereum was the first blockchain platform to allow smart contracts.

Better Security

Blockchain is more secure than any other record-keeping system because every transaction is encrypted and linked back to the previous transaction. Blockchain is formed from a network computer that confirms a block. This block is then added into a ledger which creates a chain.
Blockchain is formed from a complex string of mathematical numbers. Once formed, it is unalterable. Blockchain’s immutable, incorruptible nature makes it immune to hacks and falsified information. Blockchain’s decentralized nature gives it the unique quality of being “trust less” – which means that no parties need to trust each other in order to transact safely.

Improved Traceability

The blockchain ledger records every exchange of goods on a Blockchain. An audit trail allows you to trace the origins of the goods with the help of the audit trail. This will not only improve security and prevent fraud in exchange-related business, but also verify the authenticity of traded assets. It can be used in medicine to trace the supply chain, and in art to prove ownership.

Reduced Costs

Businesses spend a lot of money right now to improve their system. They want to cut costs and redirect the money to improving their current systems or building new ones.

Organizations can reduce the costs of third-party vendors by using blockchain. Blockchain does not have an inherited central player so vendors do not need to be paid. Additionally, transactions are validated faster and require less interaction. This further reduces the need for people to spend time or money.

Improved Speed and Highly Efficient

Blockchain’s last industrial benefit is increased efficiency and speed. Blockchain automates tedious processes and reduces time to increase efficiency. Automation also eliminates human-based errors.

This is possible because transactions can be stored in one place. Everything becomes extremely efficient and quick thanks to the streamlining and automated processes.

Everyone can trust one another because everything is stored in a distributed ledger. Blockchain uses its unique method of data storage to create a highly efficient process that is both transparent, trust-worthy, and immutable.
Improved Efficiency

Because blockchain is decentralized, it eliminates the need to have intermediaries for a variety of operations including real estate and payments. Blockchain technology, which is a decentralized financial service, allows faster transactions. It allows cross-border P2P payments with a digital currency.

Property management can be made more efficient and productive by using a central system of ownership data, smart contracts that automate tenants-landlord agreements and centralized systems of property management.

Know The Difference Between Permissionless and Permissioned Blockchains

You should also consider the differences between permissionless and permissive blockchains when you decide whether blockchain is right for your business.

A permissionless blockchain refers to a decentralized, open-source blockchain. Anyone can join the blockchain and participate in the consensus process to verify blocks. These blockchains include Ethereum and Bitcoin, for example. These blockchains allow anyone to become full nodes and begin mining. This type of blockchain does not allow for transactions to be validated by one user.

Permissioned blockchains, on the contrary, allow only a small number of people to join the network. It also includes a central authority that oversees all operations on the blockchain. Public permissioned Blockchains permit data to be viewed by anyone. This is useful for traceability of products, such as in food supply chains. Private permissioned Blockchains are networks of well-known entities that hide data from the public. They are ideal for financial service companies like R3, which is a banking consortium.

Although all solutions provide excellent security, you should ask yourself if one of these options will give you a competitive advantage over a centralized database.

Does Your Business Needs to Integrate Blockchain Technology?

We have prepared 8 questions to help you determine if your company would benefit from it. You should consider integrating it into your business processes if there are more than 1-2 matches.

• What will your company gain from a shared database?
• Do you have sensitive information (e.g. customer financial, personal) that needs to be safe stored and protected
• Are there any financial or industrial regulations that you must comply with regarding information security?
• Do you need your company to conduct transactions without third parties?
• Do you need to do them with untrusting or unknown parties if you answered “yes” to the above question?
• Are you able to trust the users who have access to your database?
• Are there any trademarks, brand assets or digital rights in your company that need to be protected?
• Are you looking to secure your IoT ecosystem? Establish secure message exchange channels?

The answer is no if you are thinking about creating a blockchain solution solely because it is popular or for making inconvertible, timestamped records. You don’t need to protect sensitive information nor meet security standards. You might find other software that will meet your needs. For example, you could use CRM or ERP which were built on top of traditional web technologies.

The answer is yes, if:

• Intermediaries should be removed
• Your goal is to ensure the highest level of security for data/transactions
• It is necessary to have a shared database
• Future network participants (employees and customers) cannot trust each other.
• You want to trace your supply chain/workflow.

The Key Takeaway

Blockchain is fast becoming one of the most disruptive technologies in our time. Experts predict that blockchain technology will have a significant impact on the future of organizations over the next ten years.

Blockchain will empower financial services, healthcare and supply chain management industries to solve the most urgent problems. It provides an architecture that is trustworthy, secure, does away with third-party authorization, and offers unparalleled security.

Amit Agrawal
As the Founder and COO at Cyber Infrastructure Inc, it is my aspiration to drive our global clients ahead in the competitive technology world by enabling them to receive huge financial and operational benefits in web development through my years of experience and extensive expertise as technology adviser and strategist. In my current position at CIS, I spearhead management of various technology initiatives, expansion of our technology capabilities, and delivery of quality excellence to our clients.


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