Whether it is because we have bitcoins in the virtual wallet or because we want to have completely secure data records, the Blockchain is on everyone’s lips in many companies from many sectors. However, few people really understand what it is and what is the full potential of this technology. If you really want to know what the Blockchain is, Build your Own Blockchain with Blockchain development company, what its applications are and all the uses and benefits it can bring to your company, keep reading and in this article we will tell you all the keys about it.
What is meant by Blockchain?
In a simplified way, we can say that Blockchain or chain of blocks is a set of technologies that record transactions safely. Data becomes immutable by forming blocks. It is very practical for processes where there are intermediaries, in this way the information presented cannot be subject to fraud, since the information has been transferred in a decentralized and transparent way: all this is verifiable thanks to exhaustive traceability.
General Blockchain Applications
We can review the current uses of this very promising technology and highlight the main fields in which its application is progressing.
Of course, the Blockchain has been around since the cryptocurrency boom in 2009 and has been gradually implemented in other sectors except for the last few years where it has dominated the trend in technological development.
When we think of Blockchain it is inevitable to think of security. However, blockchains can also facilitate productivity, due to their ability to process data quickly and from anywhere. It also serves to save costs, since transactions do not need intermediaries or audits and even to improve the customer experience.
What companies are benchmarks in Blockchain?
Companies like Microsoft and Amazon are focusing their efforts on applying Blockchain technology in their products. In this sense, Microsoft Azure relies on the Blockchain for its public cloud computing platform and also applies it on the Xbox Enterprise Blockchain platform to provide a financial system of record for the management of gaming rights and royalties.
On the other hand, Amazon has created “ Amazon Managed Blockchain ” a service that facilitates the creation and management of blockchain networks.
Likewise, other companies such as IBM develop Blockchain processes that facilitate logistics to fill shelves in retail stores and the food industry .
How do companies use the Blockchain?
Blockchain technology is not only used by companies that are dedicated to offering technological solutions and databases. It is also used by companies and public entities that surround us in our day to day.
In Dubai and Estonia it is being implemented within their governments while Samsung is developing a Blockchain platform for South Korea that will allow the creation of applications in the field of road safety and transportation.
Blockchain technology allows banks to develop smart contracts that streamline bureaucratic processes. It is also used by Spotify to correctly attribute songs and revenue to content creators on the platform.
The same is true of Kodak , which has recently enabled a blockchain to attribute copyrights and payments to photographers.
In this sense, two branches of the Blockchain are differentiated:
Traditional Blockchain – where all the components are applied as a whole.
Practical Blockchain : which seeks to apply only some parts of the components in specific projects or smaller companies.
What benefits does Blockchain have applied to companies?
Without going into technical details, you should know that Blockchain can help in tracking the transactions carried out between two entities, adding a layer of trust to the operations carried out. And it is that this powerful technology allows companies to guarantee with absolute certainty the authorship of the information that travels and that is stored in the networks, from the detail of which person, entity, institution or device generated that information, to knowing what, from where, how and when it was done.
These would be some of the characteristics inherent in its own technology, and how its integration can help companies achieve their objectives:
Transparency
An important advantage of Blockchain (if not the most) is that any member of the network can consult the transactions carried out, verify their origin and verify them. That is, all the information in the system of records is available in view of the users of the network.
That is why blockchain offers a higher level of transparency than any other system. But, if desired, Blockchain can also offer level access and authentication processes to protect certain confidential information, an ideal feature depending on the type of information being handled.
Traceability
The fact that each block in the chain stores information, added to the fact that the blocks are linked to each other, allows organizations to more easily track information and process history permanently.
In this way, an information monitoring mechanism is created that can help organizations to trace any transaction or any product, even to its origins, also allowing it to obtain information in real time.
Greater security and confidence
Blockchain technology builds a trusted environment in which data exchange is carried out through codified and encrypted operations, which makes it possible to safeguard information exchanges and guarantee the security of all those involved.
In addition, the decentralization of the information guarantees its immutability, since the business blockchain offers a peer-to-peer network system, so there is no central authority to sabotage the record system and where control will now be in the hands of the user.
Immutability
Immutability is a fundamental feature in certain enterprise systems, as it turns the registry system into a firewall, so that if a block is added to the registry once, no one can change or alter it.
Costs reduction
Having different types of blockchain technology that can reduce operating costs is always a key aspect in business. Well, blockchain allows companies to eliminate the middlemen or administrative efforts associated with reconciling transactions and keeping records. In addition, the direct relationship between the systems and devices of the companies, through this technology, allows automating the execution of the processes.
All this translates into cost savings, something that is even more important considering that it is a relatively cheap technology compared to the savings it entails. Keep in mind that you don’t even need to develop your own blockchain: many BaaS (“ Blockchain as a Service”) providers offer these solutions at a much cheaper price than what you would have needed to develop. Thus, it can reduce the cost of developers or even network administrators, a feature that many companies can use to upgrade their internal network.
Higher speed
The simplification of the data transmission process entails greater speed in the management of any information, which allows companies to act more quickly.
In addition, the absence of a central authority or intermediaries makes the information available to all participants in the on-site network. And in the case of having to make payments at a business level, this greater speed is especially relevant: compared to the 2 or 3 days that a transaction can take using traditional banking methods (SEPA, VISA, etc.), now in blockchain we are talking about a few seconds, making it an ideal feature in many business processes today.
Blockchain Enterprise Platforms
After the rise in popularity of Blockchain technology, many companies showed a real interest in working with the new technology. But they realized that if they worked together they would achieve much more progress than they could on their own. Several of these companies decided to pool their resources and create an environment that anyone could use. Forward-thinking companies are now trying to make Blockchain technology more accepted and industry-grade standard technology.
As a result of this, a series of Blockchain business platforms have emerged, sponsored by certain technology companies, which seek precisely to promote the use of technology, but for very specific areas.
Some of the best-known Blockchain platforms for companies are the following:
- Hyperledger
- R3 Corda
- Quorum
- Ripple
- Ethereum Enterprise Alliance (EEA)
These business platforms are quite popular in the blockchain market, and we must become very familiar with their names because they are where the true potential of the technology resides.
In conclusion, the Blockchain is presented as a powerful tool for companies when it comes to improving their efficiency and security in their business processes. The Blockchain is a technology that has proven to be very useful in different business sectors, since it offers transparency, traceability, security, immutability, cost reduction and greater speed in the data transmission process.
Leading companies such as Microsoft and Amazon are investing in the implementation of Blockchain in their products and services, while other companies and public entities are using this technology in different fields, from logistics and retail to road safety and transportation.