Blockchain is huge, however as per the Global Blockchain Business Council, there are still some business executives who are unaware of its importance.
Gear up guys, it’s time to speed up and join hands with the most powerful technology for your business. As per Accenture’s prediction, Blockchain is going to rule the finance world by 2025.
Any idea as to why is Blockchain gaining so much importance in the IT industry? Before we delve into it, let us see what exactly is Blockchain!
I know many of you might be knowing what Blockchain is and what is its importance in the business. However, for the few who do not know what it is, here is the basic information regarding it.
To say in simple words, Blockchain is a distributed ledger, which means that a ledger is distributed across the network among all neighbors in the network, and each peer has a copy of the complete ledger.
Here is an image explaining in detail, what exactly is Blockchain and how it works. Have a look!
Blockchain is a series of linked data blocks. Nothing can be eliminated from the audit trail, but more data can be added in the form of new blocks.
All the transactions are recorded in a digital ledger that is being shared between the participants. Global transactions are being recorded on the digital ledgers & then the shared database is shared among the thousand devices.
Do not misunderstand that Blockchain can only save monetary value, it is able to store just anything, be it the title, intellectual properties, and even music. All of such properties may be stored with the help of Blockchain.
Individuals are choosing Blockchain due to its robust security that it provides to them. There is no information or data loss. Intelligent codes & mass collaboration is something that makes Blockchain trustworthy amongst individuals.
Why do companies need Blockchain?
As per a recent report, about 83% of the enterprise workloads will be in the cloud by 2020.
It offers stability and enhanced security, provides flexibility and helps in cutting costs. Presently, around 64% of the small size businesses have on an average of 3 cloud solutions in place, which is estimated to increase by about 73% in the next few years.
What is the role of Blockchain here?
If you are collecting the organization’s information in the cloud, you are keeping a very large amount of trust in these kinds of third parties, specifically if the data is sensitive. So, although centralized cloud computing has many benefits, the cloud may switch to a decentralized, distributed approach. And this is when companies need the help of Blockchain in their business.
Blockchain cloud solutions take the customer’s information and break it into small blocks/chunks. They then add one more layer of security & spread it in the network. This is possible due to the major blockchain features like public/private key encryption. Hence, many business people have started to hire blockchain developers from renowned companies to create blockchain solutions.
Each block of data is stored in a decentralized location. If somebody tries to hack into it, they just get the encrypted data, and then get only the chunk of data & not the complete file. This safeguards the documents in Blockchain-based cloud storage.
Another major advantage of using Blockchain in cloud storage is that the owner is hidden because the node does not store the owner’s information. The miner just gets a chunk of data, so all of the important information is secured and protected.
Load balancing mechanisms and data redundancy are applied for quick access. Whenever someone tries to fetch information, all the data is first verified and if there are any changes found in the information, then the miner who altered the information is removed from the network and then the altered information is taken from other redundant copy. Hence, all the customers get identical and original copies of the information.
Many new organizations have opted for this new blockchain cloud storage market & the complete business is scaling into new heights of success. Cloud computing has immensely grown, with Gartner predicting that this ‘cloud shift’ will affect more than $1 trillion in IT funding by 2020.
Blockchain is the cheapest way to get cloud storage because many small entities participate in cloud storage by providing the computing power & space to store more information. This is the reason why companies need to use Blockchain in their business.
What are the Blockchain features that help in business?
- Immutability: Put simply, immutability is something that cannot be changed or altered. This is something that differentiates Blockchain from others. It is a permanent and unaltered network. How this happens, As discussed before, every node in the network has a copy of the ledger. There is no need to rely on the central authorities and every node is verified and then added to the ledger. This provides transparency and avoids corruption.
- Its authentic nature: The authentic nature of the system makes it unique and people find it hard to crack it. Hence, maintains data security.
- The benefit of the distributed ledgers: In a public ledger, all the information about the transaction and the individual is public. On the other hand, a distributed ledger is immutable and tamper-proof. This means, once the information is written, it cannot be tampered by any other source. Hence, it is transparent, immutable and secure.
How to Get a Billion Dollar Business by Adopting Blockchain?
As per a recent survey by Deloitte, Blockchain has become a critical priority of the businesses in 2019 (10% rise from last year).
So, if there is a time to start using Blockchain for your business, it is now!
- Start using Bitcoins and Blockchain to raise funds for your business: Businesses need funds to grow in the market. Many venture capitalists and entrepreneurs are interested to know how bitcoins and blockchain can help them raise funds for their business.
Also, you will be surprised to know that many of the startups like Tezos have already started using Initial Coin Offerings (ICOs) as an option to venture capitalist & public offerings to source for the startup funds.
With this option, Tezos was able to raise about $132 Billion and other company, Bancor raised about $153 Billion.
- Sign agreements with Blockchain Smart contracts: Almost all businesses use agreements to sign a contract. The normal procedure requires to meet a lawyer who drafts a contract between you and the customer. Now the problem is if you complete all the required details in your part of the agreement and your client does not, you can sue them.
Here, Blockchain provides you a more refined way of doing this with the help of smart contracts. These are the agreements that are signed digitally between the two parties. The best part is, they are not executed unless all the conditions are met.
You may make use of such blockchain services without the need of the lawyer and get confirmation that you will surely get the payment when a certain task is completed.
- Allow Crypto to run your advertisements: In today’s digital era, great online marketing skills are required to promote your business to the target audience. Marketers send messages, newsletters, online guides to their customers to make them aware of their business. However, as per a study from Dun, 94 percent of marketers don’t know a customer preference.
Here, Crypto can help as it targets only the specific audience relevant to their business. BLockchain collects accurate data with the help of tracking & transparency. This provides the optimal frequency of ad display to every customer.
Powered by digital currency and open and private keys, Cryptocurrency can protect your E-commerce site and secure your files better than any other solution.
Blockchain & Bitcoin are not yet widely accepted by businesses across the globe. So, if you are a business owner and start using it now, you will have an upper hand over the others.
As discussed, Bitcoin and Blockchain can help your business grow enormously. You may use it to raise funds for your business, as a great marketing technique for your business, as a new payment method for your client to pay in Bitcoins, sign contracts and stay ahead in the market.