Blockchain can change the way we do business

Blockchain and cryptocurrency have become immensely popular concepts buzzwords in the last few years, ever since Satoshi Nakamoto released his white paper on blockchain and founded bitcoin. Despite being in the market for nearly a decade now, these concepts are still not widely understood, and considered niche and exotic by most people, even those in the financial services and other related sectors. However, it is important to understand just how much of a positive impact blockchain can have on a business, if implemented correctly.

The easiest way in which blockchain tech can shake things up in the business world is by disrupting traditional business models. The characteristics of blockchain, i.e. transparency, decentralization and immutability mean that it is perfectly placed to change supply chain management and other traditional models. Blockchain data is not owned by any one entity but is shared by everyone on the network, thus making it easier to share data and not cause bottlenecks in that regard. Blockchain is also very difficult to tamper with, which immediately makes it extremely valuable for storing critical and confidential data. At the same time, blockchain is transparent as well, which means that while identities of people or businesses making transactions will be hidden, the transactions themselves can be viewed at any time, which adds a layer of accountability and potentially makes it attractive for regulators to implement, especially in the financial services industry.

We are already seeing some adoption of these technologies in mainstream industries. One of the best examples comes from online gambling and casino sites, where an increasing number of operators have begun offering cryptocurrencies as payment options. Such cryptocurrency casinos are extremely popular, as they allow customers to benefit from the advantages of blockchain technology as listed above, while they enjoy their casino games as usual.

Blockchain oriented business models can transform the way in which companies work, by removing bottlenecks, improving efficiency, making transactions more transparent and ensuring that data is safe and cannot be tampered with. It cannot be understated as to how much of an advantage can be gained by using blockchain, as opposed to a company which does not use it. There are a number of blockchain business models which can be applied based on their suitability.

Utility tokens can be used to initiate and validate transactions or other important functions in the various supply chains of companies and institutions. Companies can also outsource the entire blockchain model, and thus operate it as a service, where clients only need to work on the interface provided to them, while the backend work is handled by a blockchain service vendor. One of the most popular ways in which blockchain technology has been utilised by companies is by offering token/coin offerings in the market. Many companies have launched their own ICOs in a bid to try and piggyback on the success of bitcoin and other cryptocurrencies, and all of these have blockchain as the underlying technology for transaction verification and operation.

There are many other ways in which blockchain can be used to enhance business offerings. Audits can become much easier, with the flow and identity of transactions made easy to track and record by the blockchain.

Blockchain, for all the hype and attention, is still very much in its infancy. There is a need for companies and startups to continue investing in this area, so that more and more innovation can be done and there is more research into improving the existing technology. However, it is certain that blockchain is the technology of the future, and businesses would be well advised to try and incorporate it into their systems and operations as soon as possible.