Technological advancement has been transforming business industries for ages. From enhancing and streamlining the business operations to boosting sales and ROI, technologies have played a significant role in facilitating businesses in the traditional business world and more so in the modern digital environment. Blockchain technology and solutions are one such revolutionary technological advancement that can tremendously benefit an enterprise in this era.
However, before delving into the question “how?” let us answer the “what” first.
What is blockchain technology?
Blockchain technology attributes to a data structure capable of storing information in an encrypted and non-centralized way. As an immutable ledger, blockchain allows the users to save transactional records known as the block in several databases, identified as the “chain,” in a network connected through peer-to-peer nodes.
Types and uses of blockchain technology and solution:
- Public Blockchain: As the first-ever blockchain type in the revolution, public blockchain is a blockchain network with no restrictions and additional features such as high security, open environment, and anonymous nature. It further offers comprehensive decentralization, absolute transparency, immutability, and user empowerment, such as Ethereum.
- Private Blockchain: Unlike a public blockchain, a private blockchain restricts authority over the network to a single organization. Besides, it is partially decentralized but offers high efficiency, absolute privacy, and comprehensive stability. Used for voting, supply chain management, digital identity, asset ownership, and more, the examples of a private blockchain network are the Multichain and Hyperledger projects.
- Consortium Blockchain: A semi-private type of blockchain network, consortium blockchain allows more than one organization to run a blockchain network. Typically employed by banks, government organizations, and more, Energy Web Foundation and R3 are instances of consortium blockchain.
- Hybrid Blockchain: A combination of public and private entities, hybrid blockchain uses the features of both types of blockchains where one can have a private permission-based system and a public permission-less system. Dragonchain is an example of a hybrid blockchain.
Ways in Which Blockchain Benefits Businesses:
- Complete Transparency: Blockchain technology as an open for viewing digital ledger offers financial systems and businesses an unparalleled layer of accountability. It empowers a company by furthering the integrity of each sector of the firm towards the company’s growth.
- Extended Efficiency: As a decentralized digital ledger, blockchain facilitates the efficiency of business operations by eliminating the middlemen in several processes. P2P cross-border transfers with a digital currency, smart contracts automating tenant-landlord agreements, and more are examples of the same.
- Heightened Security: The immutable and incorruptible nature of blockchain technology makes it highly secure for business operations than other record-keeping systems. The technology encrypts every unique transaction and links it to the previous transaction, making it impossible to overwrite any transaction.
- Ameliorated Traceability: Blockchain technology is exceptional for maintaining a supply chain as an audit trail is created to trace where the goods came from each time exchange of goods is recorded on a blockchain.
Already revolutionizing a multitude of industries such as the banking system, healthcare, energy sector, digital identification methods, logistics, voting, and more, blockchain is the go-to technology for ensuring the success and efficiency of a business, both big and small, in the years to come.
Do you need professional assistance to develop a blockchain solution to meet the specific needs of your business? Consult the experts at Webgen Technologies today!