Although Bitcoin didn’t enter the mainstream lexicon until fairly recently, the technology has been around ever since the inventor, who went by the alias Satoshi Nakamoto, introduced it in 2009 as an alternative to banks. Basically, all cryptocurrencies are written into a ledger or digital logbook called a blockchain. Anybody can create a blockchain for a fee, provided they have super-powerful computers.
Why are Blockchains Becoming More Popular?
The blockchain has already gone beyond its original intended purpose, which was to support cryptocurrency. In fact, more and more people believe that blockchains are more important and valuable than the digital currencies that are not supported by a fee. It helps in business operations optimization.
Below are the distinct benefits of blockchain technology
The peer-to-peer technology is more secure than banking transactions, which are vulnerable to hacking
Fast and efficient
There’s no middleman involved so the transactions are more direct
The blockchain source code is available to all parties involved so trust is built and maintained
It’s not bulletproof but it takes a significant amount time to modify any data that has already been entered into the blockchain
Technology Challenges and Implications of Blockchain for Business
Although cryptocurrency was hit by hacking last year when digital thieves carted off with millions in digital coins, the problem was deeply rooted in negligence than anything else. The good news is that the blockchain technology itself is impenetrable, for now. The bad news is that hackers see this as a challenge. Businesses should be paying close attention to their security infrastructures right now if they are going to integrate blockchain into their systems.
Beneficial Implications for Your Business
Here are some of the advantages of using blockchain for business:
On the supply chain:
The reason why bitcoin works is because of the technology that supports it. Blockchains make it easier to audit, monitor, trace, and manage transactions. It’s also very cost-efficient because the code has been decentralized. B2B transactions will become more centralized to the end-user because of the high level of transparency.
Blockchains track all digital footprints so you can easily trace any fault in the system back to its origins. This reduces human fallibility, as well as increases the efficiency of your business.
It’s more difficult to hack blockchains because each transaction is designed to remain between the sender and the receiver. No third party can access the blockchain unless expressly permitted to do so. Any tampering that occurs in the supply chain can be easily monitored.
Steps of a Blockchain Strategy
Consider the following steps for blockchain adoption into your system
You may opt to bring in a third-party vendor for blockchain implementation because everybody should be on board with the strategy, and they can’t support what they don’t understand. Draft your targets and expectations and match them with the blockchain solutions.
Testing the system
A proof of concept is crucial to determine if this is the right solution for you. Pilot test the system in your business value and supply chain to evaluate the weak links and then validate the results.
Draft performance indicators to determine which system is most vulnerable and which are most successful when you roll out the blockchain strategy.
Blockchains will become a digital disruption for businesses that fail to prepare for it. Technology has managed to pick the blockchain out of the ether—from its sole purpose of serving cryptocurrency—and applying it to business processes and real-world scenarios. Blockchain adoption will improve the quality and efficiency of everyone involved—including management, personnel, and clients—since you have time to adjust, adapt, and innovate while the disruption is not as pronounced.
At MicroAgility, our blockchain consultants have vast experience in adopting cutting-edge technologies in clients’ businesses and know how to implement blockchain technology based on your needs and requirements. Our blockchain consulting services can help you choose the most suitable solution for your business and bring it to the next level with seamless implementation.