Blockchain technology has become a phenomenon in recent years, and though its role with businesses is getting recognizable, a number of senior executives (63%) still have no clue of what is Blockchain or why it matters. Needless to say, it’s time for these people to accelerate because this cutting-edge technology isn’t going anywhere soon.
It’s reported that the Blockchain market gap is expected to peak at $23.3 billion in 2023, making it on par with other popular technologies like PC (personal computer) and the internet. So, why is Blockchain important to business? Grown Tech Solution will explain it all to you
Why Is Blockchain Important to Business?
First and foremost, businesses can take advantage of Blockchain’s distributed ledger to reduce operational costs, which were supposed to be the charged fee for intermediaries, the administrative effort of record-keeping as well as transaction reconciliation. The absence of the middleman and data gatekeeper allows businesses to easily and instantly keep track of their products and transactions from the roots.
Walmart is one of many success stories of how Blockchain helps decrease the amount of time to trace food from store shelves to the farm from a week to 2.2 seconds. That time savings translate to immense cost savings.
Plus, this efficiency also provides transparency, authenticity, reliability as well as security. Given that data is shared on a variety of systems in multiple nations and validated before getting recorded permanently as a block in the system, it’s understandable why many businesses give credit to this technology.
The Benefits of Blockchain to Business
Companies are gradually noticing the immense potential and benefits of this future-flourishing technology and already applying it to some of their business models. While Blockchain is still relatively new, its utilities in different fields are truly endless. No matter if it is manufacturing or healthcare, this modern technology has too much to offer.
The state of West Virginia, for instance, tried out Blockchain for an electronic absentee voting campaign via a mobile app, thus Military members stationed overseas were able to voice up.
Meanwhile, Dubai had intended to become the first city fully empowered by Blockchain as a strategy to improve government efficiency, international leadership, and industry creation.
The two examples above are the evidence that Blockchain will be the end-all, be-all in smart cities. In addition to that, other industries also have a piece of the pie as well.
Nasa and Space-X have already begun applying Blockchain to their aircraft flight data as a means to ensure trustworthiness and security.
And let’s not forget how Blockchain has changed payment processing, reliable data backup, copyright protection, tax regulation, compliance, and even title transfers.
Which Industry Benefits the Most from Blockchain
Luckily, we’re all still in a pristine age of Blockchain with one of the biggest obstacles being the need to fastly scale up. However, sooner or later (from 3 to 5 years away), it won’t be an issue anymore.
In the meantime, it’s no secret that the financial field has a higher potential to embrace Blockchain at a larger scale than the recreation and arts industry does. Other big guys like agriculture, insurance, healthcare, property, public sector, technology, utilities, transportation, and manufacturing are still trying to catch up from behind.
Before fastening scalability, those industries will need to deal with standardization, and efforts have already been made in that regard. Corda by the R3 consortium is a Blockchain platform that helps lead to globally accepted standards. To that end, ISO a.k.a. The International Organization for Standardization has been also using Blockchain and distributed ledger guidelines.
On the other hand, interoperability should be carefully considered. While it seems impossible to materialize fill interoperability across all different blockchain platforms, endeavors have been made to ensure enterprise Blockchain networks will be able to communicate mutually in a consistent and scalable fashion.
Ultimately, the demands to digitize assets will rise in order to exploit the full capabilities of Blockchain. Physical items like computer parts may meet some issues in the process, but IoT sensors will handle the work.
What is Blockchain as a Service (BaaS)?
Surprisingly, technology itself could be a somewhat good help to the development of Blockchain. Big IT suppliers are rapidly rising to offer Blockchain as a Service (BaaS). These cloud-based solutions below are what businesses need to create and apply Blockchain technology without starting from scratch:
- Azure Blockchain Workbench
- HPE Mission Critical Distributed Ledger Technology
- Amazon Managed Blockchain
- IBM Blockchain
- SAP Cloud Platform Blockchain
- Oracle Blockchain Applications Cloud
- HPE Pointnext
- Samsung Nexledger
Not only that but Alphabet – the parent company of Google – is focusing on developing its own Blockchain system that could be used by third parties to track transactions.
Meanwhile, Intel has been developing and using Software Guard Extensions to safeguard privacy and security in blockchain trading. Saleforce has collaborated with Transport Alliance’s Blockchain to provide more smooth chain handoffs.
What Businesses Have to Prepare Before Blockchain Ruptures
Blockchain technology is here and will offer a big change to the face of business in the next few years. That poses the questions of how and what businesses need to prepare for such an adoption:
- Predicting, testing, and identifying how Blockchain technology will help your customers.
- Soaking up knowledge and updating about Blockchain.
Verdict
Of course, there are more factors to prove why Blockchain is so important to business, depending on specific fields and the only way to have an in-depth insight about this future technology is to keep learning, practicing, and applying it to your business.
