Implementation of blockchain technology in businesses establishes transparency, decentralizes processes, improves security, achieves scalability, and more. Read on to know more about the advantages of blockchain technology and how to become a blockchain engineer.
The term blockchain is generally associated with cryptocurrencies like Bitcoin, Litecoin, Ethereum, Bitcoin Dash, and more. But Blockchain is beyond this and it is a disruptive technology that brings transformation in business processes. Several industrial sectors are implementing blockchain and increasing accountability while reducing their investment costs. It is used to create, manage a distributed database and maintain records of digital transactions.
Let us understand what blockchain is and its benefits here.
Understanding Blockchain Technology
Blockchain is a decentralized distributed ledger that records transactions in an encrypted and secure manner. They are transparent, immutable i.e., tamper-proof and permanent. It functions as a decentralized database managed by computers in a peer-to-peer network. Each of the computers has a ledger copy that readily prevents a single point of failure (SPOF). Moreover, every transaction gets updated and validated simultaneously.
As a result, it is gaining traction in several industries like financial services, supply chain logistics and management, e-commerce, pharmaceuticals, cross-border payments, and so forth. Some of the benefits of blockchain technology have been briefed here.
7 Benefits of Blockchain Technology for Businesses
Almost all businesses are keen to implement blockchain technology for their business models. The main reason is to reap major benefits like transparency, decentralization, immutability, and security at reduced costs.
The data is not stored in a single entity. Every participant in the network owns the data, can access the information history, and confirm new transactions.
It is a peer-to-peer network. The transactions occur in consensus with the participating parties and the transactions are notified. It is convenient and trustworthy.
Digital and Automated Records
The transactions are digital and automated. The business organization can streamline operations in an easier way and reduce paper-based transactions.
Automated Validation and Verification
Blockchain utilizes consensus protocols to validate transactions and record data automatically. It does not rely on a single point of authority making the system fairer and considered secure.
Improved Efficiency and Speed
Blockchain transactions do not need intermediaries leading to a faster turnaround. It eliminates redundancy in operational processes through automation in a foolproof and stable environment.
Though blockchain is a distributed ledger with an immutable chain of data, a custom blockchain network can be created as per the business logic. It can be implemented in varied business spheres as per the need.
Blockchain is highly secure due to its digital signature and encryption. It is immutable, tamper-proof, and convenient. The data is stored in a number of places and immune to hackers.
Going forward, let us know more about blockchain applications in businesses.
9 Blockchain Applications in Businesses
The industrial sectors like banking, healthcare, education, logistics, media and entertainment, automotive, retail, e-commerce, and more are realizing the real benefits of blockchain. Some of the blockchain applications in businesses are:
Smart contracts validate conditions and fulfill the requirements of a quantifiable legal contract. It eliminates the middlemen and enables secure, cost-effective, and self-executing agreements as per the business case.
It is used for stock trading, land title registration, file storage, buying and selling of renewable energy from neighborhood microgrids, supply chain auditing, banking reconciliation, and more.
The peer-to-peer network enables direct business interaction between the parties. Peer-to-peer payments reduce intermediary and hidden costs while increasing business reputation.
Blockchain-powered crowdfunding attracts funds from investors as they can evaluate projects and make a direct investment. Businesses can raise funds using financial instruments like Initial Coin Offering (ICO), Security Token Offering (STO), and Initial Exchange Offering (IEO).
The governance of an organization can be made transparent and verifiable. This enables intelligent decision-making as the results are transparent and accessible.
Protection of Intellectual Property
Smart contracts protect copyright and automate the sale of works online. It eliminates the risk of copying of files and its redistribution.
Internet of Things
The blockchain-based IoT solutions simplify business processes by enhancing connectivity and customer experience. It is becoming a more reliable, cost-effective, and trusted business process.
Blockchain identity management facilitates people to create a self-sovereign identity in real-time. It protects individual identities from theft, reduces fraudulent activities, and handles authentication issues, and reconciliation.
AML and KYC
Distributed ledger technology (DLT) can be used to obtain, process, and verify the information in a quick and efficient manner while safeguarding them from being hacked and in compliance with Anti-money laundering Laws (AML) and Know Your Customer (KYC) legislation.
Data security, integrity, and its transparency can be managed using blockchain. It uses hashing and cryptography to create a chain of transactions and thus data is validated, traceable, shared, and secure.
Now, you know the benefits of blockchain and its applications in business. To learn more and implement blockchain technology in your industry, it is necessary to earn a blockchain certification. It is a credential that recognizes and validates your skill and fetches a competitive advantage in the industry.
How to become a Blockchain Engineer
To become a certified blockchain engineer, CBCA is a great place to start. You can become well-versed in blockchain concepts, principles, applications, and technologies.
The CBETM credentialed professional is able to develop applications for multiple platforms like OpenChain, Stratis, Lisk, Ethereum, Hyperledger, IOTA, and Hydrachain.
Leverage blockchain technology authentically in your industry by earning a blockchain certification.