The so called “block chain” technology originally developed as an instrument serving the crypto currencies like Bit coin has gone beyond its primary purposes. Fast-forward to the present day, block chain is synonymous with an ability to revolutionize a broad spectrum of industries through levels of security, transparency and efficiency never seen before. This has made it crucial for businesses to become more aware of the various applications using block chain beyond crypto currency, as they find new ways that allow them room to experiment with this technology in an attempt at being ahead in competition into digital age.
What is Block chain?
A block chain is a decentralized, distributed and public digital ledger that could be optimized for recording transactions across different computers so the record cannot be altered retroactively after recorded. Transactions are put into a block, and blocks of data are chained so to provide tamper-resistance as well as transparency about the transactions. This architecture ensures that once a transaction is recorded in the block, it cannot be changed without consensus of all parts for highest Security and Facility.
Changing business models with Block chain
There are a lot of challenges in business processes that can be solved with the unique characteristics provided by block chain. Key Transformations of Business Models with the advent of block chain in different Industries:
1. Supply Chain Management
When using block chain, end-to-end transparency enables every transaction or movement of goods to be documented where they are captured. In turn, businesses are able to follow the path of where a product came form in order to authenticate it and eliminate fraud. An example of this is the ability for food companies to use block chain, say — in order to track their produce from farm all the way through to table. This ensures quality and safety throughout state-of-the-art technologies like Block chain technology.
2. Smart Contracts
Smart contracts are essentially self-executing smart business scripts with the terms of the agreement directly written into lines and line of code. Once certain conditions are met, such as those set out in the contract both parties agree to exactly what happens next and no 3rd party is needed to ensure everything goes according to plan — since the terms of these contracts get executed automatically. Smart contracts are being adopted across sectors such as real estate, insurance and legal services in attempts to expedite processes while also cutting down on human error.
3. Digital Identity Management
This means managing digital identities in a secure and decentralized manner, where Block chain comes as an alternative. Putting identity information onto a block chain permits individuals to manage their own data and verify credentials with confidence in who views the info without fear of theft by hackers. Especially in industries like finance, healthcare or government where reliable identity verification is essential.
4. Decentralized Finance (Deft)
Although block chain is most famous for its role in crypto currency, it has been equally transformative for decentralized finance (Deft). Deft is a new financial system modeled from block chain providing usual banking service ( lending, borrowing and trading) but without the traditional middlemen such as banks. This has the potential to make financial services available worldwide, in particular regions with low banking penetration.
5. Copyright, royalties and creative IP
It could totally disrupt the way we manage intellectual property (IP) rights and royalties by creating an open, trustless ledger of ownership and distribution. This enables even artists, musicians or content creators to save their work on a block chain and be absolutely certain they receive just award every time somebody buys the rights.
Challenges and Considerations
But even with its promise, block chain adoption does not come without challenges. Factors to Consider when Implementing Block chain Solutions in Business
- Scaling: As the number of transactions grows, block chain networks can slow and become very expensive which is ill-suited for a massive volume of use cases.
- Regulation: The regulations around block chain are still developing as other governments from across the world take different paths to regulation. Different regulations can vary and compliance with them is complex.
- Integration: System integration means huge costs and technical man power, which is difficult for small & medium size enterprises.
Where is Block chain Heading within Business?
However, it is expected to further diversify into new applications and become ‘block chained’ across multiple industries as the technology matures. The companies that opt for block chain in early stages of its adoption will be the leading ones to benefit from it and also enjoy a competitive advantage.
Key Trends to Watch:
- We are going to have more interoperability: The future will see developments in strengthening the relationship between many block chain networks, ensuring a free flow of communication and data.
- Sustain: Initiatives reduce block chain network energy consumption making them greener.
- Block chain-as-a-Service (Batas): Big tech companies, including Microsoft and IBM, also have their Batas platforms which are making it easier for businesses to adopt block chain technology through pre-built solutions.
Conclusion
Despite being the foundational technology for crypto currency, block chain is much more than that; it has become an integral part of a wide range of industries and disrupts traditional business models. Block chain is allowing businesses to operate in ways that were previously unthinkable from both greater transparency and security, all the way through efficiency. As the technology matures, understanding these possibilities as well is necessary to get the most out of this new capability.
