A virtual ledger capable of registering and verifying an inundate number of electronic transactions safely and quickly is what a Blockchain is. This ledger technology has greatly impacted the area of application development resultantly expanding it.
“The blockchain is going to change everything more than the Internet has” – Brock Pierce
The first Blockchain use cases came from the financial institutions and cryptocurrencies such as Bitcoin, Litecoin, Ethereum to name a few. According to Statista: “Worldwide spending on blockchain solutions is expected to grow from 4.5 billion U.S. dollars in 2020 to an estimated 19 billion U.S. dollars by 2024”. Industries have shown exceptions in the adoption of Blockchain. Industries like healthcare, food, and energy sector including many others are adopting blockchain technology.
Read: WHAT IS BLOCKCHAIN TECHNOLOGY? – A QUICK GUIDE
Blockchain Applications in Business – What Lies Ahead?
These industries have shown acceptance towards this change as it shows a promising future for these businesses. But at large, the adoption of blockchain technology to change how these industries traditionally operate and how they will in the future is more of a theoretical concept. The real change is taking place at a rather minuscule level compared to its theoretical potential. Does the question then arise; what are the obstacles that impede change at a global level? This will essentially be the focus of this discussion.
It took more than 40 years for the existing business model to change from traditional to digital but Blockchain technology has penetrated the market faster than anticipated. It wouldn’t take much longer for it to replace the existing models globally with blockchain ones as is obvious from the wide-scale adoption of it.
According to Deloitte, 53% of C-level officers – from CEOs to CFOs – identified blockchain as an integral part of their organizational infrastructure in 2020 and a technology that can remodel their business models to achieve their desired goals with efficacy.
Check this to learn more: THE BEST GUIDE TO DEVELOPING BLOCKCHAIN APPS IN 2021
How Have Blockchain Technology Transformed The Traditional Business Models
Blockchain isn’t restricted to cryptocurrency alone but has expanded to almost all industries. Its advantages are countless for every industry because of the nature of the technology and can really improve the working of numerous industries. The most sort after feature of this emerging technology is the security aspect.
Improved transactional security
Record keeping between multiple people/allies/companies isn’t an easy task. Blockchain can be your friend if you’re dealing with record keeping as it can remove obstacles and make relationships work smoothly. Blockchain technology has made global trade more secure and effective. Global shipping collaborations to improve their operation is a thing now.
Digital relationships management redefined
Distributed ledger technology (DLT) is a digital system for recording the transaction of assets. In a distributed ledger, the transaction details are recorded across multiple places at the same time. It provides you with smart contracts to monitor and save various business assets including important documents of ownership. These contracts simplify digital interactions while controlling the transactions. It also offers automated payments when the participants mutually reach an agreement on the conditions mentioned in the smart contract.
Saving intermediaries costs
Industry relying heavily on intermediaries can save costs by using blockchain technology. For instance, food apps like Foodpanda work as an intermediary between the client and the restaurant. The very same real estate business owners use apps like Airbnb and Booking which establishes a connection between the client and the owners. Blockchain has the capability to change this. By its adoption, companies can host their clients on a private blockchain.
Data protection
Another use for blockchain technology is the traceability of every change/modification made to the data. This ensures that the user can track all the changes and is always updated and no unauthorized person can alter the data. The data can’t be changed, faked, maligned, and erased which is a great step towards data protection.
