Having been hailed as one of the most significant and promising technological developments in the 21st Century, blockchain undoubtedly has an exciting future ahead of it. The cryptocurrency boom of 2017 saw bitcoin and other popular cryptocurrencies rocket in price before declining at the start of 2018, but it also brought blockchain, the technology underpinning bitcoin, to the world’s attention. Here is some further information regarding this technology and its potential to transform businesses worldwide.
One of the key industries which blockchain could impact is financial services. Given that blockchain is a decentralised, immutable ledger which allows the seamless transfer of digital information, financial services could greatly benefit from the unparalleled security it offers in areas like transactions and processing. Companies providing business loans, for example, can use blockchain technology to enhance their analytical capabilities and revolutionise the methods they use to get the money to each business that they lend to.
Another advantage which blockchain can offer to businesses is the means to cut out intermediaries, which can be costly and inefficient. Major business transactions, for example, typically go through an intermediary who will charge a (fairly substantial) fee in return for the security they provide. With blockchain having the ability to provide unparalleled security for transactions for virtually no cost, however, the need for intermediaries will no doubt dissipate in the near future, allowing businesses to make significant savings and improve their offerings as a result. This will go a long way in helping to pass on savings to customers, too, making the business more appealing overall.
Those businesses which are incorporating blockchain technologies into their processes are also offering their customers and other businesses an unprecedented level of transparency in with regards to numerous aspects of their processes and transactions. Since blockchain is a shared (distributed) ledger, everyone on any given network can view transaction histories/documents contained within as opposed to one person owning them.
Any changes to documents have to gain consent from every single person on the network, so there is virtually no room for error or foul play, and businesses can offer their shareholders and clients an unparalleled level of access and insight into their operations.
Ultimately, blockchain could well be the stepping stone to a revolution in business operations, and it is likely that the current usage of this innovative technology is only scratching the surface of its full potential. With the blockchain industry continuing to grow and expand into new areas, there will be plenty more scope for businesses across the world to adopt it and reap the benefits it offers. As such, business owners would do well to invest now in order to stay ahead of the trend.