10 Benefits of Blockchain to All Enterprises By Guest Contributor on October 25, 2019 What is Blockchain? Blockchain is a reliable electronic ledger, connecting numerous individuals in a network of trust (assurance) and integrity, assisting the relocation of assets and the details related to those assets. It was originally developed as a mechanism that could legalize Bitcoin as an authentic electronic currency after the tumultuous happenings in the financial world that caused the global financial crisis in 2008. It does this by safely recording digital transactions in a consecutive chain using cryptographic digital keys, which are validated by the system as genuine. Replication, amending or elimination of transactions is averted by the chain which is held on other computers in the network. The lengthier the Blockchain and the extensive the network, the more sophisticated the digital key will be and the safer the Blockchain. Blockchain Architecture for Business The blockchain framework consists of public and private options. In the public option, everyone can connect and read. The blockchain within the public domain can be safeguarded by allowing only approved members to write. In a private-based blockchain model, only approved members can connect and read. The writing option can be allocated to only a few. The kind of blockchain framework will depend on the kind of business and the domain in which it will be applied. 10 Benefits of Implementing Blockchain • Greater transparency One of the most notable advantages of blockchain is transparency. This attribute may appear contrary to the privacy and security potential of blockchain, but these two advantages can work in conjunction. All transactions are searchable and traceable on a public blockchain. This degree of unambiguousness can entitle users with full knowledge of the cycle of producing and distributing something they purchase from the grocery store or significant online retailers like Amazon. From the means used to make a product, to the conditions under which it was produced, its distribution to resellers, and ultimately, its shipment to the consumer, the whole supply chain can be made transpicuous for a blockchain user. Businesses are experimenting with and identifying the advantages of transparency for their consumers. • Decentralization Decentralization is one of the main reasons why the popularity of Bitcoin keeps rising. In the case of Bitcoin, miners worldwide track and manage the Bitcoin blockchain’s credibility. By carrying out cryptographic calculations, they verify transactions that exist on the Bitcoin blockchain. The transaction is deposited in blocks connected by hashes. An attacker would need to own 51 percent of its overall hash power to exploit the Bitcoin network, which is extremely expensive and unsustainable. This is how Bitcoin avoids theft and double-spending, making it possible for anyone to be their bank without having to depend on the third party. The decentralized nature of Bitcoin makes it impossible to regulate or inflate by external influences such as government. Such decentralization allows global payments to be quicker and cheaper, a great value market and resistance to censorship. • Eliminating the middleman Generally, there has been a need for an intermediary while making purchases or selling items online. However, Blockchain provides the ability to send worldwide peer to peer undertakings without an intermediary. It also allows transactions to be made without banks, Paypal or other financial institutions. Such blockchain technologies are being pursued by corporate giants such as Alibaba and Starbucks, moving to a future in which bitcoin can be used for a wide variety of transactions. As seen in cases such as smart contract libraries, the more blockchain transforms, the greater the number of apps that become available to users without a middleman. Such apps create a global marketplace that not only allows developers to monetize their work but also streamlines the process of solution-building by easily accessible smart contracts. • Anyone can be their bank Banks are highly regulated and need to Know Your Customer procedures, which pose major obstacles if you want to open a bank account. In the financial industry, there are many start-ups focused on blockchain and cryptocurrencies that provide a viable option to those without access to a traditional bank. Blockchain lets you access a bank’s functionality with just a mobile phone, removing an obstacle to entering for many. • Reduced cost for businesses Blockchain has the potential to cut costs in almost every industry for companies and their operations. For example, the Internet of Things (IoT). Although blockchain integration is still considered in its early stages for this industry, it has brought noticeable improvements in operational costs and efficiency. • Security The validity of the information can be ensured as each payment is checked within the network using independently verified complex cryptography. • Data ownership A major problem we face today is that our data is owned by institutions like governments, hospitals, banks, and social media. Many people don’t even realize how much information they give to them unknowingly. People can take back control of their data with blockchain-based encryption tools. Users may allow third parties to check specific factors, such as nationality or being over a certain age, rather than giving access to more explicit and personal information to these institutions. • New business models The potential of blockchain is perfect for experimenting with new business models, especially as they relate to cryptocurrencies. It is now viable to motivate and incentivize people for better life decisions, whether they are related to well-being or finance, which will eventually save them expenses in the long run. With blockchain apps and a new or existing coin, you can check and reward someone who walks ten thousand steps a day. This is just an illustration of the entirely new kinds of business frameworks made feasible by blockchain technology and tokenization. • Tokenize any asset Blockchain and tokenization will change international stock trading markets gradually. With cryptocurrency, from any place and without limitations imposed by conditions such as timezones, you can trade worldwide, 24/7. There are several start-ups specifically focused on selling regular shares like Google, Amazon, and Tesla. By tokenizing stocks, you no longer depend on normal weekday trading hours, but you have the option of buying and selling whenever you want. • Incentivize positive behavior It is very little to encourage good conduct when it comes to social media platforms such as Facebook or Instagram. Combined with the other concerns related to these groups, this system has led to an increase in social media platforms that are crypto-aware. Such new social networks use cryptocurrencies to reward people for uploading content and also encourage positive behavior in different ways. Alternatives to Youtube and WordPress exist which precisely reward content producers for their efforts. Precautions when business invest in the blockchain technology Those organizations interested in investing in blockchain technology must first conduct a prudent analysis to see if it is feasible for their business. In the initial years, most businesses may not see any return on their investments. The unstructured execution of blockchain technology can result in policy failures. What is required to leverage the exemplary benefits of blockchain technology is an appropriate strategic approach. Industries in which blockchain technology can be applied The blockchain technology can be extended to almost every industry, be it agriculture, banking, healthcare, education, e-commerce, real-estate, mining, retail, transport and logistics, media and entertainment, automotive, etc. To conclude Rumour mills in the business world about how blockchain technology is capable of challenging existing models. The blockchain must be launched to improve operational efficiencies. The blockchain technology, when properly implemented, has wider implications, hopefully, the positive ones. Author Bio: Prinsa Prajapati is a digital marketing specialist, a full-time blogger at Silicon IT Hub. She has 5+ years of experience as a technology blogger. She can be seen sharing her experience and expertise on information technology, guided by a passion for helping businesses grow by writing articles for businesses that want to see their services ranked #1 in Google. She loves travel trips and reading masterpieces of literature when she doesn’t work.