Is blockchain ready for business?

Blockchain has come to be considered one if not the most significant step forward in the world of technology after the birth of the internet. While at its core, blockchain technology can sound deceivingly simple, being nothing more than a way to create distributed ledger databases, its real-world potential in business transformation is spectacular. The ability to store records of transactions of any sort and type and the security offered by the inability of any transaction to pass through the blockchain without the consensus of involved parties, can remove the prospect of fraudulent undertakings to come to fruition. So yes, despite the challenges enterprises have to overcome, blockchain is the most promising tech today in terms of long-term benefits. Whether your company is looking to create trust, improve data security, reduce costs, or trace the origin of raw materials or products acquired, blockchain is the way to go. Here’s why I believe blockchain is now ready for business:

Core features of blockchain

Consensus. When a transaction is performed on a blockchain, it is recorded only after that transaction has been checked and confirmed by enough parties to be considered valid. This ensures that the transactions made on the blockchain are agreed upon by the parties involved and that other participants on the blockchain can confirm it.

Synchronization. When a transaction is validated on the blockchain, it’s recorded by all the participants in that transaction. All the parties involved know about the transaction.

Persistence. One of the key features of any blockchain is the impossibility of removing blocks once they’re created. In other words, while blockchains allow new records to be created when new transactions are made, they don’t allow removal. Thus, transactions recorded on such virtual ledgers are perpetual and can never be deleted.

Security. Depending on the core structure of any given blockchain, making new transactions and validating them can be done only by certified parties. Unverified participants must be validated using methods like proof-of-work, proof-of-history, proof-of-stake, etc.

Why blockchain is ready for business

Immutability, one of the core foundations of blockchain, means that it can function without a central command, offering trust and integrity. Furthermore, all the members of a blockchain are part of the distributed ledger, allowing for faster and more straightforward transactions than any system controlled by a central authority. This makes blockchain an ideal tool for enterprises and service providers, with an extreme number of potential applications in all sectors of the economy, as well as in the public sector.

Many blockchain networks are public and allow the participation of anyone registering on them. Such platforms can’t and aren’t considered to be safe and secure by companies, as their data and processes are not private in any way. However, today, enterprises have the option to use private blockchain networks that allow the participation of authorized members only.

Some of the most impressive advancements in blockchain technology are related to usability and speed. Moving away from intensive resource-consuming proof-of-work processes (where the best example is the original blockchain - Bitcoin) to new cryptographic processes like proof-of-authority or proof-of-history leads to better, faster, less time and resource-consuming blockchain structures. Enterprises can benefit from these advancements significantly, both because of reduced transaction costs on the blockchain networks they choose to use and because of proof-of-authority that can be easily implemented and translated into organizational structures.

Then there’s also the advantage offered by blockchain interconnectivity. While early blockchains had trouble communicating with one another, in the present day, new protocols and oracles have emerged, allowing for various blockchain networks to interconnect and exchange data. In other words, different enterprises and organizations can send information between them and perform transactions even if they use different blockchains. Depending on their needs, there are solutions available for transferring all kinds of data, ranging from simple messages and internal data to payment contracts, and even allowing stockholders to vote on their company's course of action.

As blockchain technology evolves and matures, the options for enterprises become increasingly more varied. Nowadays, blockchain networks are not only more secure than ever, but also offer interoperability and scalability, improving productivity in every business area.

Potential business use cases for blockchain

Besides enabling faster and almost real-time transactions, maturing blockchain technology allows today for a slew of evident use cases that include, but are not limited to business sectors such as:

Supply chain traceability and transparency. One of the essential parts of any large business is the supply chain. Keeping inventory, sharing data, and having access to financial aspects on a blockchain allows companies to keep track of everything (inventory, orders, and payments are all recorded on blocks) while spending a lot less on financing the transport of products between parties. Furthermore, tracking products and shipments on a blockchain can help with making sure that the items ordered conform to your company’s requirements.

Management of identity, personal and organizational data. Blockchain can also be used to manage the identity and credentials of employees and third parties, allowing for faster, more secure, and more private records. Furthermore, blockchain tools can be leveraged to organize personal data and access resources according to company rules, preventing data theft, identity theft, and unwanted information outflow. Permissioned blockchain platforms using proof-of-authority processes enable enterprises to exchange and share data with trusted third parties on agreed levels only, without fear of giving away sensitive information.

Payments tracking. Using blockchains allows companies to make swift payments and provide them with a reliable means of tracking and monitoring each financial flow.

Customer engagement. Non-Fungible Tokens, or NFTs as the whole world knows them by now, can be leveraged by businesses to attract customers and build brands. Besides obvious means like creating and selling NFTs backed by the original brand company, other potentially useful implementations of NFTs include selling subscriptions or tickets to various services, shows, or entertainment activities provided by the companies.

Is your business ready for blockchain?

Blockchain technologies and platforms have now matured and are ready for business. More and more enterprises, large and small, are adopting blockchain and are either changing, adapting, or even reinventing their business models. The ability to streamline business processes and manage data on the digital ledgers known as blockchains is reshaping our world and economy, making it more critical than ever to be open to new technologies and ensure your business is not left behind. Will blockchain recorded data be considered more trustworthy than traditional means of storing information? Is your company ready to shift to cryptographic ledgers and move its data and processes to the blockchain?