Experts around the world are converging on the fact that Blockchain technology has the potential to revolutionize the business landscape in a big way. Turns out, it is definitely creating a wave of digital disruption that is unseen and unheard of.
Simply put, blockchain is the underlying technology for creating, processing, and transacting cryptocurrencies. The emergence and success of bitcoin is a tell-tale sign of blockchain being the next big thing for the world economy. With its remarkable innovativeness, blockchain has gradually made itself useful to other areas as well.
Conceptually, blockchain is a decentralized digital network of immutable record of data (blocks). This data is managed by a large group of computers that aren’t owned and controlled by any single authority. The blocks, in turn, are securely linked to each other using cryptographic algorithms (chain). That is why it is the simplest and safest way of relaying information from one entity to another.
Applications of Blockchain
The fact that blockchain cannot be controlled by any central authority makes it a highly transparent system. Also, due to the immutable ledger architecture, information is there for everyone to see without being affected a tad bit. The process begins when one party initiates the transaction process by creating a block of data. This block, then, has to be verified by all the computer systems connected to this dedicated network. Once verified, the block is added to the chain.
The concept of blockchain is rapidly gaining ground and the momentum is overwhelmingly shifting to industries beyond the cryptocurrency world. Industries like Travel & Tourism, Supply Chain Management, Fintech, Advertising, Marketing, Accounting, Banking, etc. are going to witness a paradigm shift.
Here are some its indispensable applications:
1. Smart Contracts
One of the most effective uses of blockchain’s decentralized structure is the way a smart contract works. It allows credible transactions to take place without the need of third parties. It helps in exchanging money, property of anything holding a value in a transparent and conflict-free environment. It also initiates ongoing records guiding companies in trustable future negotiations.
2. Supply Chain
Supply chain is the backbone of today’s economy; especially e-commerce industry relies on it heavily. But supply chains are usually marred by lengthy checks and verifications that can cause things to slow down; or sometimes it can bring the whole system to a grinding halt. Blockchain, on the other hand, effectively allows companies to keep a real time track on the movements and transactions of goods.
3. Urban Planning
Blockchain can be implemented in smart cities so that services delivered to citizens are cost-effective, efficient, and of better quality. It can seamlessly link together multiple technologies to automate basic city services. Through decentralized, transparent, and distributed ledger system, blockchain can mitigate problems like legal restrictions, regulations, property purchases, etc. Transportation system can also be radically upgraded using blockchain through an enhanced management of data collection and analytics.
4. Internet of Things (IoT)
Blockchain technology can be a force-multiplier to the better efficacy of IoT. The Internet of Things basically refers to the network-controlled management of electronic devices. Information and data is exchanged among these sensors that can be used in multiple ways, but vulnerability is always there. Therefore, blockchain can make the automation and management of this system relatively easier. Plus, it increases system efficiency along with improving cost monitoring.
5. Stock Trading
In the current system, stock market manipulation is a reality, which is why stock exchanges around the world are looking forward to improve costs, efficiency, low risks, and better security. This is when a distributed ledger technology (DLT) can completely overhaul traditional mechanisms. So when blockchain technology gets implemented, trade confirmations will become almost instantaneous, thereby removing intermediaries from the process.
6. Digital Marketing
Digital marketing has become indispensable today, and with the arrival of blockchain, it is on the verge of facing another revolution. As we have already discussed earlier, transparency and democratization are at the core of blockchain. So digital transactions will be simplified and need no third-party involvement. An added level of continuous security would enable marketers to quickly and efficiently assess demographic factors. Most importantly, blockchain can prove to be an ingenious way to figure out fake ads using its shared database system.
Having said that, technologies like AI, ML and analytics have greatly benefited businesses; while blockchain can play a level playing field by giving control of data back to consumers.
Wrapping it Up
The incorruptible nature of blockchain makes it one of the most potent technologies not only for financial transactions but anything that has value. It can completely overhaul the way businesses are being carried out so far. Above are some of its myriad applications in the new world order. This technology is certainly a revolution in motion!