Blockchain technology is popular and gaining momentum. This implies a number of advantages that are very beneficial for traditional businesses. Find out how it works.
The Benefits Of Applying Blockchain Technology In Any Industry
Blockchain technology is popular and gaining momentum. This implies a number of advantages that are very beneficial for traditional businesses. Find out how it works.
Blockchain consists of a sequence of information blocks that are protected by cryptographic encryption. Each segment is assigned a tag that is used for identification. The data is instantly updated and can be used by all participants in the network.
In this review, we will try to highlight the most typical applications of blockchain in business.
What are the prospects for a company using blockchain
There are several benefits to adopting blockchain technology:
1. In transactions, there is no need for intermediaries, as the transaction takes place directly between the seller and the buyer.
2. Information cannot be lost because it is stored on different computers.
3. Unscrupulous individuals will not be able to rewrite the information for their benefit.
4. With the help of cryptographic algorithms, the parties achieve a higher level of security.
Each transaction is signed with a private key that prevents other participants from misappropriating funds. At the same time, transactions are performed automatically and do not require monitoring by others.
The Exchange Commission, which controls the legality of transactions in the U.S., equated the issued tokens with securities. The advantage of settlements in cryptocurrencies is the increased speed of transactions. Blockchain will fundamentally change the way financial institutions conduct transactions.
Applications
Money transfers are one of the applications of blockchain technology. The new technology not only increases the security of financial transactions but also reduces the fees of payment systems. This creates smart contracts, which are executed automatically after the approval of the parties.
Blockchain makes it easier to record transactions on stock exchanges. There is a single document for each transaction, both sides of the transaction confirm it.
Government agencies are showing interest in decentralized data storage systems. Electronic voting will reduce the cost of organizing elections.
Smart contracts are used to protect copyrights. For example, there is already a platform “Mycelia”, which allows to sell music. Micro-payments received from the sale of products are distributed among the participants of the system.
Direct sales of goods is another area where blockchain comes in handy. Business owners will not have to resort to intermediaries, who will demand a certain commission for their services.
There are several advantages of implementing blockchain in business:
1. The idea of the developers is to form a block of data for each transaction. The peculiarity of the technology is that the record is public and every user can learn about the status of the transaction.
2. There is no need for a centralized data storage system for transactions. The advantage of blockchain is that each participant has multiple copies of the chain.
3. Business participants do not have to worry about losing important information due to natural disasters or hacker attacks.
4. Lack of intermediaries allows you to reduce the cost of transactions. The blockchain’s peculiarity is that each user is assigned a cryptographic key, which other participants cannot know.
New technologies speed up financial transactions between participants and also reduce their costs. Even now users can make instant money transfers to another country from their mobile devices. The transaction fee is only 0.25% of the payment amount.
How is data logged and verified?
With blockchain, transactions are stored on more than one computer. Multiple copies reduce the risk of losing information. Hospitals that register patient information use this technology. Doctors can review a person’s medical history at any time.
Electronic records facilitate the process of recording real estate transactions. In this way, the possibility of fraudulent schemes can be prevented.
Factom company has already developed a program that uses the capabilities of the decentralized blockchain system.
Buyers can use blockchain technology to register land titles. European countries are testing such a system. Blockchain makes it possible to register vehicles. With the help of new technologies, developers protect intellectual property.
The actual problem is the accounting of the turnover of digital goods. With the help of Blockchain, it is possible to control transactions for the sale of photos, music, and e-books.
Public institutions have gained the ability to record the birth or death of people. As an example, Estonia has implemented a marriage registration system. Blockchain makes it possible to keep
records of people who have committed offenses. And the data can be used to fight international crime. Entrepreneurs are showing interest in being able to track orders.
Is there an option to automatically execute contracts?
A smart contract is a contract that specifies the conditions for its automatic execution. Businesses do not have to constantly monitor the status of the transaction. With a smart contract, the need to use intermediaries disappears.
The business profits by reducing the costs associated with bureaucratic costs. The contract begins to be executed automatically, without human involvement.
With smart contracts, the business owner will be able to track the arrival of products to their destination.
GPS navigation is used to get a response from the buyer. Automatic execution of contracts can also be used in car leasing. In case of late payment under the contract, the driver will not even be able to start the leased vehicle.
Blockchain technology can be used to pay lawyers, accountants, and musicians. Artists will get more money for their work, as intermediaries disappear from the scheme.
How to verify the authenticity of products offered by a company
The goods don’t go straight from the supplier to the end consumer. Products pass through companies that act as intermediaries. In this situation, it is difficult for people to verify the authenticity of the goods.
Often there are a large number of fakes on the market, which are almost impossible to distinguish from the original in appearance. Blockchain allows you to track and confirm the fact of origin of various products.
Application in the insurance industry
Thanks to the smart contract system, the developers managed to improve the insurance system. In the case of damage, the payment to the claimant is made automatically. The amount of compensation depends on the conditions spelled out in the contract.
Application in the media
Most publications are not only published in paper form. Anyone can view magazines and newspapers online. And users are charged a fee for the electronic version. The reader can pay with cryptocurrency, which is stored in an electronic wallet.
How blockchain can be used in medicine
Decentralized storage simplifies the process of maintaining a database of patient information. Doctors will be able to view a patient’s medical history and record a list of medications prescribed to a patient.
Blockchain speeds up access to important information that specialists need. It also ensures the confidentiality of information that concerns patients. Users must have a special key to view health information.
Medical institutions will enter information about sick people in the registry and keep statistics. Hospital administrators will be able to reduce the cost of keeping administrators who maintain the databases.
How to use blockchain in finance
Businesses will be able to fundamentally restructure their accounting system. Fewer audits reduce costs because financial reports will be in the public domain. The new system of storing records will also be of interest to the tax inspectorate.
The owners of small and medium businesses can save on the cost of auditing companies. A decentralized system will facilitate the reconciliation of accounts and analysis of reports.
How blockchain can improve internet security
The servers of large companies and government agencies are regularly under cyber attack from competitors and other nations. Blockchain introduces a decentralized information control system. In doing so, each user gets a DNS list that is stored on different devices.
Creating Internet applications for data protection
Blockchain-based programs are designed to keep corporate information secure. Without data protection, any firm cannot compete in the marketplace and will be vulnerable to hacker attacks. Large financial institutions pay a lot of attention to security to ensure the safety of customer funds. Blockchain app development will improve transaction security.
Summing Up
The further development of blockchain is sure to affect other areas of human activity. Modern society is ripe for the introduction of technology into virtually every aspect of our lives.
