Blockchain As A New Business Tool
Blockchain As A New Business Tool
Blockchain technology is leading the way for future entrepreneurs to their success. Let’s explore this phenomenon and hopefully inspire you to become the next Elon Musk.
What is Blockchain Technology?
You may be familiar with Bitcoin and cryptocurrencies. Now cryptos are built on Blockchains that give them their unique abilities to perform a specific function. Blockchain technology is very important in the sense that it is a ledger that records the data about the transactions between parties. A blockchain consists of blocks, which is where these so-called records are securely stored. One record consists of three elements, namely a timestamp, a hash pointer and transaction data. The data on a Blockchain is permanent and managed on a peer-to-peer network.
The world was first introduced to Blockchain in 2008 by a man who is probably one of the best known ‘anonymous’ people in the world, Satoshi Nakamoto. In 2009, Nakamoto used Blockchain technology to record all Bitcoin transaction. It is unique in the sense that it eliminates the need for third parties to keep records of transaction.
Blockchain relies on a node to fulfil an administrative function. In the same vein, nodes are the components that mine Bitcoin.
Blockchain is a safe way to store digital currencies and data since it relies on encryption technology. There is a golden rule in the crypto world that one should always have control over his private keys. These private keys are basically the address that is saved on the blockchain and serves as a form of a password.
Why is it Ground-breaking?
Blockchain technology aims to simplify the way business is conducted so that it saves money and time and enables one to do more within a given time frame.
Blockchain tech cuts out the need for middlemen and is especially helpful when procuring goods or services. By making use of its digital ledger, one can easily keep track of quantities, delivery dates, costs, suppliers, volumes and other relevant data.
Keeping inventory becomes easier with Blockchain technology. Now, one can stay on top of what and how many products are in various locations and even calculate what the demand for a specific product was at a certain time. This excludes the possibility of human error and establishes an accurate and up to date inventory system.
Speeding up contracts and payments is another advantage behind using Blockchain technology. It is given that although a contract may stipulate the payment being made within 30 days, the majority will only receive payment after about 60 days. This can be referred to as an “analog gap” which can be costly for any business. With Blockchain technology payments are made in a specific time and contracts are digitally stored.
The Ethereum Cryptocurrency has been making waves with its smart contract blockchain technology. Smart contracts take the hassle out of manual payments by working on a digital invoicing and payment system.
Blockchain technology has the power to stop corruption and fraud. If there are various parties involved in a business and it is important for all partners to share in a copy of the ledger, Blockchain technology eliminates any possibility of manipulating numbers. It keeps record of all changes made to the ledger, and the document is completely transparent.
Blockchain technology is still a very new concept and until it becomes more widely accepted, it will possibly scare off investors or customers who do not yet understand its use. Due to the legislation in various countries across the world, cryptos are forbidden, which may add to people being sceptic about the technology. Although it can save one a lot of money, implementing the technology may still be expensive and requires one to get rid of older systems.
How Will It Change the Way We Conduct Business?
Smart technology is slowly but surely becoming part of our daily lives. In the financial sector, Blockchain technology is being used to pay holders and to maintain their investments. In the insurance industry, the tech is used to claim for damages caused and keep thorough record of clients’ insured assets.
Blockchain technology also allows one to safeguard important contracts or title deeds and eliminate possibility of these documents being tampered with. These are but a few examples of how Blockchain can change the business world for the better.
Examples of Blockchain Technology Rocking the World
So far, Blockchain technology is closely associated with the financial industry as the community first spotted the concept of distributed ledger technology in terms of Bitcoin and cryptocurrency. Blockchain tech allows bitcoin exchanges to keep thorough record of investments, settlements and avoid unnecessary duplications or “misunderstandings.”
Blockchain is also widely used on the stock market. Prominent exchanges are adapting this ground-breaking technology to streamline operations and facilitate payment transactions. For instance, Korea Exchange has recently come on board by launching Startup Market that offers customers equity shares in start-up companies. There are even crypto coins that help investors to identify whether or not an investment is a good opportunity.
With the implementation of blockchain technology in everyday life, one can simplify the tasks and live a less stressful life. Keeping personal records on a Blockchain is very beneficial as it secures your valuable data and gives you easy access to it. If you need to apply for a loan or show proof of address, one can quickly access this information wherever you are.
Whilst blockchain technology is still a new concept, it is easy to see its potential to make the world a better place and preserve what is good. This tech has the ability to decentralize societies, encourage fair and responsible businesses, and engage in fair trade. There is still a long way to go before it will be adopted by the masses, but the tech is advancing every day, and more people will begin to see its benefits.
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