You may often hear the term blockchain concerning the cryptocurrency industry. When it first appeared, Blockchain technology revolutionized how businesses work, helping them save capital and streamline the supply chain. Today, successful companies who jump early on the digital transformation trend make strategic decisions, streamline business processes, and implement more business models by leveraging technology in the marketplace. Blockchain is one of the key technologies that is driving digital transformation.
This article will go over how blockchain works, how it can benefit your business, and what the technological landscape will look like moving forward.
How does blockchain technology work?
Blockchain is a technology that records transactions on a digital distributed ledger where the information cannot be erased or altered. These records are linked with cryptography and are easily verifiable to those with access. Because this technology is decentralized, real-time transaction data is available to every device on the network, which adds another layer of security, improves efficiency, builds trust, and removes friction.
How blockchain enhances existing business models
Today, many applications are built using blockchain because they provide various business solutions. Blockchain allows a solution to rapidly size and scale; it offers consensus, replication, immutability, and high security. Here's how blockchain can enhance your digital transformation journey.
Smart contracts: As seen from the name, smart contracts use blockchain to self-execute. The terms and conditions for both parties are written in code and stored in a decentralized network so one cannot sabotage the other. When the conditions are fulfilled, this smart contract will automatically execute.
Ease of payment: Blockchain and digital money have always gone hand-in-hand, so it isn't surprising that technology now powers digital payments as well. Blockchain creates a transparent environment so those in the same network can verify and make payments securely. It removes any third party and associated documents like invoices and billing statements and eases payments for many.
Supply chain management: Currently, many SME enterprises use blockchain to track products/services from manufacturing to delivery. The process will be transparent and immutable, helping companies battle counterfeit, theft, and delays with another layer of security.
Talent scouting & marketing campaigns: In recruitment, blockchain is slowly becoming evident when used to prevent candidates from faking their documents using tools like Photoshop. Organizations don't have to waste time verifying documents but rather put that effort into finding the perfect fit for them. In marketing, organizations can track client information and customer behavior which helps marketers create better campaigns.
Robust security & improved speed: Security is one of the undeniably most essential features of blockchain in the digital age where cyberattacks are getting trickier to combat. Aside from the high security, blockchain technology also improves speed and efficiency by automating many time-consuming processes and eradicating human errors simultaneously. Transactions done through blockchain are completed in seconds or less.
Financial management & capital raising: Blockchain also saves costs by removing third-party vendors during transactions that sometimes cost millions if your business frequently handles transactional affairs. The technology also opened an alternative method to raising capital through Initial Token Offerings (ITOs), which are available to be traded freely. These tokens are equivalent to equity or revenue share.
How to prepare for a blockchain-powered world?
The transition can be difficult for you and your business. Because the technology is still in its novice state and can bring forth many hidden challenges which will be detrimental if it is not navigated correctly. The best way to prepare for a blockchain-powered world is to consult with reputed blockchain development firms. Dirox is a software development firm in Vietnam with years of experience working with companies worldwide, consulting on how blockchain can transform them and helping implement this technology into the organization. Please get in touch with us to learn more about what opportunities there are with blockchain.
Applications of blockchain
What better way to see the real-life results than seeing the real-life examples of blockchain in businesses? Blockchain has been involved mainly with money, and the banking industry is thriving because of it. This technology establishes a ledger for payments, facilitates faster payment with lower fees, tokenizes assets, and lowers interest rates for loans and credit. In education, digital qualifications are issued so students can share their verified credentials with employers. Governments are also using blockchain in voting to protect the information and strengthen the validity of election results.
Blockchain can play a vital role in your digital transformation journey, enhance your business, and improve the results of your operations. If you want to implement blockchain or are still unsure about this new technology's possibilities, please consult with our expert consultants at Dirox, who are happy to help!
Started in 2003 in Ho Chi Minh City Vietnam, our Development Company operates on a Global Scale in Asia, Europe, and America. Dirox’s team of technology consultants, business gurus, software & apps coders, and design visionaries bring you innovative solutions on time, on budget, and on quality. We strive to bring you the best IT outsourcing & offshore services.