Integrating blockchain technology into business: What is blockchain and what is its business value? The benefits of using crypto-technology in today’s business models: new solutions and opportunities.
The starting point for blockchain
“Blockchain has the potential to free talent from intermediaries: reducing authors’ dependence on producers, startups’ dependence on venture capitalists. Money transfers are already cheaper, simpler, and faster, and in the future, the fairest elections can be held on blockchain, where every vote counts,” Vitalik Buterin, programmer and co-founder of the Ethereum project.
An important event and starting point for the cryptocurrency world is certainly the generation of the first Bitcoin blocks and tokens in 2009. The digital technology of open data recording on the blockchain led to a real decentralized revolution. Despite the benefits of fast and secure transactions, Bitcoin and blockchain didn’t get the headlines until 2017, when large companies and corporations joined the ranks of crypto-enthusiasts. So how did blockchain and decentralized assets get the business community interested? Why have celebrities begun to claim that blockchain will fundamentally change not only finance, but other familiar industries as well? TokenSale can help you understand.
Before we get into the benefits and opportunities of integrating blockchain into business, we need to talk about its ‘anatomy’.
The “anatomy” of blockchain
“Blockchain is a shared, immutable registry designed to record transactions, record assets, and build trust relationships. Blockchain allows certain participants to transmit transaction data using a single source of trusted information, eliminating duplication of data and increasing the reliability of the process,” a global information network source revealed.
Blockchain consists of several decentralized and independent blocks that are linked together in a specific structure — a chain. Each block carries information and data (address, date, and time when the block was created) that any participant can view but cannot change. At the same time, each new block always refers to the previous block, maintaining a certain sequence. Blockchain data is stored on tens of thousands of independent devices, guaranteeing maximum security, openness, and high resistance to technical failures and attacks. There are currently thousands of blockchain platforms operating around the world, both fully decentralized (e.g. Ethereum) and private/corporate, created for specific purposes and controlled by a private company.
The business sector processes and approves vast amounts of documentation, information, and data daily. The financial system is built in such a way that all transactions and data transfers go through intermediaries, making multitasking time-consuming. Considerable time and effort go into maintaining the accounts and financial statements of companies. Record-keeping systems are often at risk of fraud and cyber-attacks. A lack of transparency in the process can delay data verification.
With the development of digital technology, the number of transactions has increased a thousandfold. Outdated record-keeping technology slows down the logical structure of companies, leading to significant reductions in profits. That’s why blockchain is the ideal environment, giving network participants instant, shared, and fully transparent access to information (transactions, accounts, payments, goods, and orders) in an unchanging registry.
The business value of blockchain
Security
Blockchain acts as an infinite ledger that stores data about the financial transactions that were used for monetary transactions. To validate a transaction, all participants need to agree on the accuracy of the data. All records remain open and transparent to view while retaining the immutability feature. In this way, no one can change and enter invalid data or alter the blockchain’s registry in any way.
Public and private cryptographic keys ensure that blockchain participants have absolute security for their financial and personal information. This will help companies not to process huge amounts of personal data of their users, but only from the history of their transactions.
Technological sophistication
Outdated interconnections between companies are handled by signing trust contracts. If the appointed terms are not met, the resolution of the conflict goes to court, which incurs large monetary losses and an unlimited length of time in the process.
Blockchain can help transform paper contracts into technical and fully enforceable smart contracts that are stored on the blockchain network and executed automatically. The advantages of this method are that the terms of a smart contract cannot be changed by anyone and require mandatory execution. They will help to cover many financial processes, such as payment of fees, payment of a company’s employees’ wages, or closing a deal.
Innovation
Any business, large or small, can move with the blockchain trend through additional funding. More and more companies are launching their tokens and conducting ICO rounds, increasing the value and potential of their product. The company’s native tokens will also help facilitate functionality for its customers and open up the ability to perform a multitude of transactions from any device.
With the increasing functionality of the internet, more and more companies are made up of domestic workers who are located in different countries. Blockchain technology will help save commission money from international transfers and provide fast and convenient transactions with minimal fees.
Conclusion
Blockchain can be positively integrated into a wide variety of industries. In finance, for example, this technology can enable the deployment of various lending services, loans, and deposits. Customers of companies will easily be able to make dozens of different transactions, exchange currency and perform all the necessary operations from the comfort of their homes.
At the moment, virtual systems are becoming more and more convenient and in demand for businesses, so we should expect active integration into all new and progressive companies soon.
