How Blockchain Can Take Your Business to the Next Level
What’s Blockchain?
Blockchain technology helps companies deal with digital assets securely. It can streamline operations and transform the way you process payments. How can you apply this new technology to the businesses? In this post, we explain how blockchain works and how you can apply it to your business.
Blockchain, also referred to as Distributed Ledger Technology, is a technology that records the origin and trajectory of a digital asset, making its history unalterable, decentralized and transparent. The technology is based on three critical principles:
- Digital assets are not copied but distributed.
- Access to digital assets is full and in real-time.
- The registry of changes is transparent and unalterable, preserving the integrity of the document.
According to the MIT Technology Review, a blockchain allows people to share valuable data in a secure, unalterable way. Putting it simply blockchain enables us to store data from every participant’s point of view in agreement. That means two parties looking at a document will always have the exact copy of the data, creating an audit trail that every part of the network can see in real-time.
Blockchain allows people to exchange money, goods, or data directly. Most people would use a bank or a financial company as a middleman when making a transaction. Blockchain enables the two parties to connect avoiding the intermediary.
How Does a Blockchain Work?
Blockchain uses cryptography to secure transactions by providing a decentralized database. Each transaction is registered in a block. The transactions are transparent for everyone on the network. The network comprises a chain of computers that must approve an exchange before verifying and recording it. Check the following video of the World Economic Forum that explains how blockchain works.
The blockchain is an open and decentralized database that registers every valuable transaction. It applies to exchanges of money, data, property and work. The blockchain creates a record of the transaction that everyone in the community can verify. The ledger of transactions is public, so it can help to reduce fraud.
We can understand it better with an example. Let’s say to “A” wants to send money to “B”, these would be the steps of the blockchain:
- A block is created, representing the transaction.
- Every part of the network is informed about the existence of the block.
- The parts in the network approve the transaction and verify it is valid.
- The block is added to the chain, providing a transparent record of the transaction.
- The money goes to “B”.
5 Blockchain Applications for the Businesses
Small and medium companies can benefit from Blockchain to provide a way to streamline operations more efficiently and transparently. Below some ways you can apply blockchain for business:
Supply Chain Management
Blockchain enables businesses to have transparency in the supply chain. A business owner can see all the companies on the chain from production to distribution. That helps to recall the product or check the ethical sourcing of a part or if an ingredient is organic.
Smart Contracts
Sometimes you have a contract delayed until all signatories have the latest version. With blockchain, everyone has the last updated version at the same time. Smart contracts are digital contracts embedded with conditional (if-this-then-that) code clauses. The clause includes a trigger like a date that executes the contract according to the terms. Some examples include ownership rights, royalty distribution, or property contracts.
Faster Payments
Blockchain eliminates the need for reconciling bills and invoices, which means you can process payments almost instantly. This technology can help businesses to process payments that usually take a lot of time to process. For instance, small healthcare providers can process insurance claims and get paid the same day.
Background Checks
Companies can use blockchain to verify a candidate’s work history. The technology can be used to verify job titles and qualifications from a single source of information. That can save HR departments and businesses the time it takes checking the potential employee’s background.
Blockchain Internet of Things (IoT)
Any device that connects to the Internet is a “thing”. The Internet of Things refers to the connection of devices to the network and each other. It is estimated that we have 31 billion IoT devices worldwide. Smart home devices can order groceries and supplies from the supermarket or Amazon. The blockchain can provide security with distributed information needs. The ledger systems ensure that the data is only shared and released to trusted parties.
How Ample Tech Helps Companies Introduce Blockchain Technology
It is without doubt that blockchain can be a game-changer for a business. It saves time and provides secure transactions. At Ample Tech Australia, we develop blockchain solutions that streamline operations and help companies tap into the opportunity blockchain offers. Our team of experts can guide your company into digital transformation, creating a tailored solution that can attend your requirements and take your company to the next level. Read about our experience in blockchain and fintech development and contact us to learn how you can use blockchain to improve your business.
Ample Tech Founder and CEO