Blockchain for Business in 2023: How to Integrate Your Business in New Reality?
Blockchain is not just about cryptocurrency; it’s a technology that allows optimizing countless processes in business. Blockchain allows verifying authentication of goods, tracking supply chains, making fast financial operations, etc., within a few seconds. In 2020, Pandemic boosted blockchain integration. According to PwC, in 2030, world GBP will grow to 1.76 trillion dollars due to blockchain employment. This article will tell you what blockchain is for business, which opportunities it creates, and its pros and cons.
Blockchain is a continuous chain of blocks with specific data. The information that blocks deliver can’t be changed or deleted; it's only possible to add new information. Numerous computers store block copies worldwide, i.e., decentralized, without a central server. Hence, even if some computers break, the data is still present on others.
The main opportunities that the technology provides for any kind of business:
The blockchain models and principles allow solving numerous tasks in business:
The cost of any project will depend on the country, team, industry, targets, and other factors.
A smart contract is an application that processes agreements automatically following particular conditions. The price can reach 1000 dollars while integrating an extensive application on a blockchain; for example, Uber costs above 220 thousand dollars. If developing an application DApps, the price will start at 1 thousand dollars and create a token — a dozen-fold more.
The real asset, with material form, is the most expensive blockchain product. The reason is that the projects will be large-scale, and the customers are often large corporations and states.
There are some common problems while integrating or employing blockchain in business projects.
The reason is that technology is young and new. Common issues are:
If you plan to implement blockchain in business, it is essential to understand smart contracts and consensus. There are three consensus models for selection:
It’s essential to know how to record data and store it:
Partly public networks allow managing rights and picking users that can access specific information in the blockchain. The approach might differ; for instance, the voting and ratings can help determine the authority. Each user will have its power. ZCash provides users anonymity; no one can track their financial operations.
Private blockchains are similar to the public, yet only particular people can access data. The blockchain is centralized; the company owner defines all rights. It’s an excellent solution for health care institutions.
Sidechains are networks that function as a bridge between two blockchains to avoid intermediaries. It’s perfect for storing confidential data if the main blockchain can be hacked.
Information System Audit and Control Association and other institutes conduct global research on the risk of blockchain employment.
According to their study, there are five groups:
The next popular area of use is managing supply chains and control. For example, IBM and Accenture are developing blockchain-based enterprise solutions for different clients. In 2018, IBM made a successful launch, the Food Trust Network. It gave large stores like Walmart the to track products at any stage of their journey. The next successful project was the TradeLens platform. It made it possible for transportation companies and freight owners to exchange transaction data and send documentation to each other.
The simplified form of work is as follows:
There are several everyday tasks that blockchain helps solve:
Among the main advantages for corporations:
Classical IT systems cannot process a large flow of information due to low speed, volumes, and a wide variety of information. All this negatively affects corporate strategies and the ability to make quick decisions based on the received data. Blockchain, on the other hand, has the potential to eliminate many scalability issues while maintaining transparency and a high degree of security.
Blockchain is modern technology but does not provide a universal solution or solve all possible business problems. Its implementation unambiguously simplifies many processes, makes them cheaper and faster, and automates some areas. For specific tasks, blockchain is necessary and improves work generally, while for others, it remains a useless implementation. Any solution must be considered personally, being created for a specific type of activity. The development and implementation of blockchain for business is a promising area with more pros than cons.
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