Blockchain: What it Holds for Businesses Today?

“Blockchain facilitates transparency by preventing information silos and providing real-time access to available data.”

Blockchain is a new concept for many and not so much for others. Undoubtedly, the newest bet technology has proved to be the most significant and disruptive technology of the last decade that has gradually changed the business world. 

Many assume that this concept is linked to the only digital currency, but it is not, since it goes much further and could be a solution for the digitization of your company.

Blockchain is a very secure, very cheap, and fast system. Its security is due to cryptography, and it reliably protects all the personal and economic data of users who decide to use this method to make their payments.

The powerful technology allows us to record transactions permanently within a decentralized network, which uses a decentralized registry, which means all the participants involved, own the information.

This is  ‘block-chain’ wherein the information is linked chronologically by means of a hash or cryptographic code. 

A blockchain platform is dynamic as its participants are constantly registering new information, and is automated because, by means of algorithms, the occurrence of certain actions previously established by the parties can be programmed.

The latter is achieved through smart contracts which are self-executing protocols arranged to enforce the operation of an agreement between the parties.  As more participants adopt this technology, new opportunities will be created along with the new risks that will have to be clearly analyzed by the companies.

Nevertheless, the extent to which it has been expanded and explored, the enterprise-grade blockchain solutions for businesses offered by many top global companies, would be seen as a valuable investment in the coming future.

What do you Mean if you say Decentralize Everything?

The possibilities offered by the blockchain are almost endless, both that can be applied in new markets and in existing ones.

Also in new services and products and in existing ones. Although the blockchain is known for cryptocurrency transactions, it could be applied to traditional payment systems, as well as others that are becoming a trend again, such as the exchange of objects or time banks.

By keeping all movements also recorded, a reliable mechanism is created regardless of the type of transactions that are discussed.

This system is like the Internet, nobody and nothing owns it but everyone can use it to make their payments. It is true that the change and decentralization of the financial system is a fact that may seem very appealing. With this action, the banks will almost say goodbye and they will have no influence on society.

Now comes our intended question:

Why Implement Blockchain in Business?

“Blockchain Solutions leverage your Business with the foundation of Trust, Transparency, and Traceability.”

The answer is pretty much simple and comprehensive that blockchain offers significant competitive advantages. With this platform, organizations have access to reliable tools to execute financial and commercial transactions.

Now let’s dig out the benefits that businesses can reap out of Blockchain:

#Digitization

All data on the platform is based on distributed registration technology, participants have immediate and remote access to documents or transactions.

This decentralized and digital access creates an audible footprint that due to the immutability and monitoring of data creates a single truth or one truth for information.

#Low Operational Risk

Being a decentralized and incorruptible process, blockchain rescues the operational risks of companies.

Likewise, the debugging solutions are made in real-time without any risk of errors and this is all because of smart contracts that allow scheduling and coding of transactions.

#Loss Reduction

The creation of information based on this network, considered one truth, allows to reduce the number of reconciliations, since each block is based on the previous one.

Blockchain facilitates automated reconciliations and the reduction of human errors in the said process.

#Cost Savings

As a result of digitization and automation inherent in the blockchain, this technology improves operational efficiency, reduces the cost of capital (due to less balance sheet exposure, generates lower compliance and regulatory coverage costs, and decreases administration costs of the involved risks.

#Data Immutability

The cryptographic processes in the transmission of information allow the authorship of the information that is generated and transmitted to be attributed with absolute certainty and makes it extremely difficult to change it later, eliminating possible party alterations.

#Transparency in Operations

All the members of the network know what they see and it is the same as what the rest are seeing.

This guarantees the integrity and traceability of the information or transparency in its manipulation.

#Security

Blockchain’s peer-to-peer networking eliminates intermediaries, having no centralized information on storage makes data less vulnerable as compared to traditional paradigms. 

#Consensus among Members 

Each node in the network executes the same logic and all of them can verify any transaction, eliminating the need for central authorities to certify them.

#Creation of New Markets

With the arrival of this platform, the internet market opens. With it, the different service providers will be able to satisfy the demands of incorruptible, decentralized, and immediate databases that organizations in all industries need.

[Prefer a 5min read on: “Blockchain Technology: Transforming and Revolutionizing Businesses 2020.”]

BLOCKCHAIN FOR SMES: HOW IT WILL IMPROVE YOUR EFFICIENCY

Currently, only the big finance, banking, or insurance companies, from important sectors, use the famous blockchain. Yes, banking and insurance, the ones that always seem to be contrary to blockchain and cryptocurrencies!

They are those that have the resources and infrastructure necessary for the application of this technology. SMEs do not have these resources nor do they see the need to do so.

But as useful standards are developed for small and medium-sized enterprises, the possibility of benefiting from this system will increase.

For SMEs to fully enter the use of cryptocurrency and blockchain, it is necessary for a single person to see the potential of this. From there, adapt it to your needs and company so that you can take advantage of all the advantages it offers.

In addition to improving its efficiency, and having control of all its transactions, the blockchain has a high-performance security system, which protects the data of all users who make a purchase and those of the company.

Furthermore, Smart Contracts is one of the greatest advances that this technology has provided us. Smart contracts are digital agreements backed by blockchains and work as a “cause and effect”, where, for a contract to be executed, you must meet some prerequisites. 

Thanks to its possible uses, it is giving rise to new relationships and digital business models, supporting legal agreements under the security and protection provided by the Blockchain system.

Businesses to See Blockchain Beyond Bitcoin, Cryptocurrency & Finance

Beyond bitcoin and cryptocurrencies, the realm of blockchain extends its power and allows companies to attribute with absolute certainty the authorship of the information that travels and is stored on networks: which person, entity, institution or device generated or sent how, where, what and when.

Source: Mckinsey

Today, the financial sector is one of the areas where this technological resource is investigated and tested because its properties promise to provide greater security, transparency, efficiency, automation, and competitive advantages in operations.

Executives from banks and financial institutions have accepted its potential, so they are implementing various proofs of concept and are developing minimum viable products on topics such as digital identity, customer awareness (KYC), as well as preventions of money laundering, tax evasion, etc.

However, the technology is also designed for other sectors such as government, health insurance, and retail. Senior management of organizations must explore their characteristics and benefits that they provide so that their companies are aligned with global trends.

Across industries around the world, blockchain is helping to transform businesses with greater efficiencies, eliminating duplication of effort. NetSet one of the leading software companies also made an effort to enhance the power of blockchain and was successful in one of its use cases of developing Video Conferencing App that analogs Zoom or Google Duo.

They offer BaaS (Blockchain as a Service) where the Cloud-based custodial blockchain solutions for business have helped enterprises embrace and leverage the efficiencies of blockchain without having to start from scratch.

Meet Blockchain to Gain Simultaneous Business Benefits

NetSet offers tailored blockchain solutions for business, besides whatever relationship you carry with Blockchain or the level of knowledge you possess.  We have understood the peculiarities of this emerging technology and have explored the real applications of Blockchain for business, its impact, and the opportunities that can be created. 

“For us, Blockchain is a part of our commitment to the digital transformation of companies.”  

Thus, book a free obligatory consultation with us and know-how we have developed different blockchain ecosystems and how we can help your business to benefit from the immutability and transparency of public networks and the privacy and scalability of private networks.