Blockchain is a hot technology that’s taking up a lot of pixel space, but how can it actually help your business? Blockchain technology is a distributed ledger of digital transactions that creates a decentralized database that is verified and updated constantly (about every 10 minutes) for all computers in the network. Imagine a shared document that is instantly updated on everyone’s computer at the same time, and you know it’s accurate. While the technology is relatively new, many businesses puzzle over how it can help them. However, there are a few ways that blockchain can produce real results for your company.
Smart Contracts
The concept of a smart contract is a program that automatically executes upon the completion of an event. This helps to massively reduce friction, manpower and legal enforcement. For example, a contract can be created that says when a certain amount of money or coins is transferred, a security such as a stock or bond is transferred in return. Ethereum is the most successful smart contract blockchain so far. It has helped companies raise tens of billions of dollars in start-up capital already. Tezos, E.OS, and others also have smart contract systems on the blockchain that have different features and functions.
Cloud Computing
Today, cloud computing is dominated by centralized companies like Amazon, Microsoft, and Google. However, blockchain promises to allow cloud computing to be completely decentralized. This means that companies can store their data on global networks on thousands of computers over an encrypted network. This will be much safer and at a lower cost. Filecoin has already raised billions to pursue this mission.
Supply Chain Management
Verifying all of the products in your supply chain is extremely challenging. You may never know if some fraudulent or low-quality parts were put into the mix. Blockchain technology could allow companies to automatically and cryptographically verify all the parts when they enter the supply chain. That increases quality and reduces the number of people required to verify everything. There are many companies working on this problem but no clear leader yet.
Can you imagine being able to work in real-time, collaboratively with others, on important time-sensitive projects? Not only will this remove the delay in edits going back and forth, but it will allow an ever more remote workforce to collaborate effectively.
I love learning about technologies and ways that digital methods can transform businesses. Blockchain is one of many very cool, exciting, and yet somewhat untested technologies out there. I’d love to hear from you about how you have used blockchain, or other innovations, to improve your business!
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