Blockchain technology is popular and gaining all the big turns. According to the consulting company ACCENTURE, in 2018-2024 the blockchain will be in many types of assets. And by 2025 this technology will become a massive and integral part of world capital. Many people doubted the prospects of it when it first appeared. Now even the largest companies use it in their work. These companies include Microsoft, Paypal, Intuit, Dish Network and other giants. Blockchain software development is in high demand.
The experience of such companies showed and proved that one can use this technology in business. How?
Why Blockchain Is Important
The blockchain is a chain of blocks in which all information about perfect operations between participants is. This data is visible to everyone, but it is not possible to change or fake. The chains are not stored on some specific service, and exist on all computers connected to the network. The main feature of the technology is that transactions perform without intermediaries (banks). This implies many advantages that are very beneficial for traditional business.
How does it work?
The technology has ordinary users and miners who collect transactions and write them into the block. The block consists of a header with the hash-sum of the previous block. Also of a special field for miners, transaction information and code with conditions for smart contracts.
Miners are consistently substituted in their field value and calculate the hash sum in which there must be a certain number of zeros. Their quantity depends on the network computing power: the less miners, the less complexity.
When entering the chain, each participant checks whether the hash amount coincides with the data. This is protection against falsification and DDOS-attacks. The need for constant recalculations reduces the activity of botnets.
Main principles of the functioning are:
- decentralization;
- safety;
- transparency;
- permanence.
Uses Of Blockchain Technology In Business
These principles make it possible to solve many business tasks. You can even take the best bitcoin loans using blockchain. And here is the list of other uses.
Compromise at the conclusion of a deal with unreliable parties.
There are no risks in the technology. No one can fool you. The algorithms associate each block with the previous one. And when adding a new one (which needs confirmation of each participant), the registry is automatically updated. Thus, you can not worry that any of the parties will not fulfill its obligations.
The speed of the transaction
Money transfers with the help of the blockchain take no more than 2-3 minutes. Using “ordinary” methods, the procedure can delay up to several days. Additionally, there is also the Bitcoin Lightning Network, which is used for micropayments and offers a much quicker speed.
Reduced spending
The technology significantly reduces costs due to the lack of intermediaries. If the company makes many transactions, even the small commission on the outcome turns into the round sum.
Ensuring complete confidentiality
To hack the chain, you need access to millions of computers that are in the network. Technically it is impossible to do this. Applying blockchain technology companies receive 100% security.
Transparency
It is one of the main reasons why the blockchain is so attractive for business, it is that the chains almost always have open source code. This means that other users or developers have the ability to change it at their discretion. But at the same time it makes it an incredibly difficult imperceptible change in already registered data.
Network managed by users
Finally, crypto investors attract the features of the technology associated with network control issues. In the case of the blockchain, it also does not need an intermediary, users and developers decide this task.
Thus, the uses of it can save the company’s money, automate most of the processes and reduce risks.
Blockchain Usage In Different Fields
Almost all businesses can install this technology in their work. Here are some examples of that.
Financial industry
The securities market, the stock market – the sphere on which the blockchain focuses is paramount. Private and companies actively enjoy the ability to sell shares directly. The main advantage is the absence of intermediaries in the face of the stock exchange.
Logistics
This sphere has a huge number of suppliers and buyers. All this must be constantly monitored. And often several processes are running at the same time. Using the chain you can avoid unnecessary document management.
Property and real estate
Another branch in which there are large amounts of transactions and many papers. Blockchain usage speeds up the processes.
Energetics
The blockchain technology reduces the costs of infrastructure and documentation. Thereby, facilitating the entrance to the business and providing more favorable conditions for sale.
Insurance
The insurance process can become automated. And the communication between the client and the company – significantly facilitated.
Telecom
It is difficult to maintain the service level agreement due to the huge amount of data and different equipment manufacturers. The blockchain can solve this problem not only in the telecom industry. But also in the transport, mining industry, housing and communal services. Thus, everywhere where many suppliers and partners.
This is only a small list of industries. It must be said that using the technology you can not only make money transfers, but also to send information (contracts, offers, etc.).