What Is Blockchain Technology and How It’s Providing Organizations the Ease of Doing Business?
Originally published on: CoinSpeaker
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January 14, 2019
“Blockchain Technology”, something that is on the minds of every technological geek today. But what is it? And why it has gained so much popularity over the years?
Here is a simple definition, “Blockchain is a shared distributed ledger technology in which each transaction is digitally signed to ensure its authenticity and integrity”.
Over the years blockchain technology is popularly known for its utilization in the Bitcoin and other cryptocurrencies. But in recent years, this modern technology is grounding its roots in making distributed ledger work, especially in different sectors of the business.
History of Blockchain
The history of the technology dates back to 1979 when Ralph Merkle patented its structure. It was first designed to verify and handle data between computer systems. Since the validation of data was important in a peer-to-peer network of computers, the technology helped in ensuring that false data was not sent by any means. In short, the whole idea of blockchain technology is to maintain and prove the integrity of the information being shared within a network.
However, in the year 2008, things went one step ahead when Satoshi Nakamoto conceptualized the distributed blockchain. It was then when it became the backbone of bitcoin and all other cryptocurrencies. His idea was to develop a secure history of data exchange by utilizing a peer-to-peer network which could be verified and maintained without a central authority, unlike the conventional central banking system.
How Blockchain Technology Assisting Businesses Worldwide
The current time is no less than a milestone, as this exceptional technology has started to come out from the shadows of cryptocurrencies. Buyers and vendors are expecting to take advantage by adopting blockchain technology in their business practices. As the decentralized philosophy behind blockchain technology has gained attention in diverse business organizations.
Powered with secure decentralized protocols and a modern-day decentralized management attitude, blockchain has all it takes to rapidly be beneficial across every industry we know today.
Here are a few areas within different organizations that have benefitted the most from this cutting-edge technology.
Efficiency in Operations
Since blockchain works a distributed ledger, the basic and fundamental function of the technology is to ensure that data transfer within a network is transparent, simultaneously distributed, and in an immutable fashion. Such a function is exceptional in overcoming the inconsistencies in data transferred within different areas of an organization, mitigating lack of trust and increasing transparency of information within a department.
Another area at which blockchain technology works well for companies is self-executing contracts. Businesses around the world can now use smart contracts for sales, employment, lease and other types of contract. For instance, investors and small business owners can manage their equities through automated tools which previously took specialist professionals a lot of time, ultimately can help companies in saving huge amount of money over time.
With the current blockchain technology, it has now become possible for companies to gain a real-time digital ledger of different transactions and movements for each of the participants in their supply chain network. This increasingly has helped them in procurement – giving more visibility and savings, data and analytics – collecting, storing and analyzing data in a better way, allowing digital contracts and payments, and encouraging smart contracts to end costly procure-to-pay gaps.
No wonder blockchain in revolutionizing supply chain management in different business organizations all over the world.
Sales and Marketing
The online presence of businesses carries all sorts of significance. While technology has already helped companies to create a strong business profile online, blockchain is now assisting them to gain higher revenues. Well-trained and knowledgeable sales team carrying adequate information related to the blockchain technology have the scope to explore new sales solutions.
After sales, service is important than ever before, and manufacturers have realized it as well. Blockchain could be used to improve after-sales services in small to large size organizations.
Marketing professionals, on the other hand, having a thorough understanding of the technology can help integrate blockchain into the content and pepper it with highly researched keywords. Ultimately helping the vendor organization to stand out in the chaotic online marketplace!
Cloud computing technology wasn’t a possibility before the blockchain. Remember the time when professionals had to keep all important data in bulky hard drive and travel from one place to another while carrying the same.
Blockchain has allowed tech designers to provide businesses with opportunities to save a massive amount of data online. All secured and easy access from any place around the world! As a result, businesses can connect with a cloud storage provider and store a massive amount of data, where the costs are based solely on supply and demand, instead of a centralized system with fixed high prices.
The opportunities blockchain technology is currently providing businesses is just the tip of the iceberg and has a long way ahead. All started with cryptocurrencies, the technology has now no limits to the benefits it can provide in carrying out different business operations in a more productive and efficient way.
All businesses require is get hold of the right technology and implement in the right way to get the most favorable results.