In 1991, when Stuart Haber and W. Scott Stornetta first introduced a cryptographically secured chain of blocks, little did they know it will develop into a technology that can be independent and financially stable by itself later. From theoretical knowledge to the real-world introduction in the form of Bitcoin and the later developments, blockchain today is growing at a tremendous speed.
The value of blockchain stems from the capability to share data fast and securely. For businesses, blockchain provides the capability to improve existing processes and activate new business models. There are numerous strategic business values that blockchain provides.
Let us learn how businesses can gain from the strategic values.
Due to the basic nature of blockchain for being the most trustable technology to verify and transfer data, businesses gain value with its usage. The innovative smart contract system ensures that the data is recorded and concerned people are notified of the updates. The trust enables entities that have no direct relation to each other make genuine business deals.
Blockchain is not a centralized structure. Each block in the virtual world opens, works, interacts, and shares information based on a set of conditions. Only those with real authority can have an overall view of things. The rest of the people with access can only have a superficial knowledge of their own concerns only. It can link multiple businesses under one roof without data clutter.
Security and Privacy
Security and privacy are the strategic values of blockchain. It creates an unalterable record of transactions with end-to-end encryption. As the blockchain data is not stored in one server or system, hacking threats are negligible – better than traditional storage systems.
The verification and amendment of information or transactions in blockchain help reduce costs for businesses. It simplifies processes by reducing manual tasks like auditing and reporting. In simple terms, it eliminates the costs of middlemen between the B2B transactions.
Blockchain transactions guarantee visibility and traceability to the users. Product sellers can see the whole process proceed with clarity from the selection of raw materials to selling to the customers. Every document passed, verified, rejected, or frauded can be checked and traced with solid evidence.
The smart contract technology of blockchain ensures that the data stored in blockchain are authentic and immutable when verified. Once recorded, it cannot be changed, altered, or deleted from the block. Records are time and date stamped, enabling secure and reliable information sharing or storage.
The advancement in blockchain technology makes it easy to adapt and adopt into business systems. Blockchain applications include resume verification, medicine distribution, financial transactions, industry 4.0, and much more.
Although blockchain has had great strategic business values over the years, it’s not without its flaws too. The true value of blockchain is unleashed based on where it is used and why. If you are thinking about investing in blockchain, study well what your business needs from it. Gain the maximum value based on the technical requirements.