5 Uses For Blockchain In Business

By Champions Admin / Dec 1 2017

Blockchain is often misrepresented as a product that can be purchased and implemented within a business to improve efficiencies. Companies like IBM, Microsoft and others are creating solutions that make it simpler to implement Blockchain Technology. Blockchain can be explained as a ‘fabric’, ‘middle-man’ or as a tool that enables the creation of an array of business solutions on top of the technology.

It is easy to see why Blockchain is misunderstood, it is a highly complex concept that can be explained more simply as: An immutable digital ledger that can be programmed to record not only financial transactions but almost anything of value.

One of the best analogies that explains blockchain from one of the original Cyberpunks and the creator of ‘Smart Contracts’, Nick Szabo is to picture the Blockchain like a fly trapped in amber. A fly trapped under only a thin layer of amber may have only occurred yesterday while a fly trapped under a meter of amber happened at a more distant point in the past. The digital distributed ledger called the Blockchain can be viewed as the same as the fly in amber, transactions are processed constantly and many transactions are years old. The ledgers across the distributed network are updating those transactions even as you read this, 24/7.


Why Should you Consider Utilising Blockchain Technology in your Business?

Companies across all industries will likely benefit from the adoption of Blockchain technology in the not to distant future. Detailed below are 5 potential applications for Blockchain in business:

  1. Decentralisation
    From storage to applications and services, complete decentralisation is the ultimate cloud technology. The distribution of your application, service, backups or cloud stored data across a network of computers rather than the typical centralised server in your server room or cloud server at a cloud provider can see your business lowering risk significantly and experiencing much less if any downtime. The cost will also play a factor and will be considerably cheaper than the centralised model as the technologies progress.
  2. Smart Contracts
    Smart Contracts are an automated computer program that can carry out the terms of any contract as well as store relevant information. Think of a smart contract like an if-this-then statement eg; If i sell my car to Jane for $5000 and Jane agrees then the transaction will process automatically, no invoices, quotes, deed of sale (stored in contract), etc. The application of Smart Contracts will change the way industries such as Law, Real Estate, Logistics, Insurance and Health currently operate and systems they use.
  3. Employee Payments & Settlement
    The public ledger technology as well as the removal of the ‘middle-man’ means that transactions abroad or to your employees can cost very little, take far less time than standard methods and are transparent meaning that the person on the other end can see where the funds are throughout the whole process. The benefits from a payroll perspective, especially if your business has employees overseas is a big benefit.
  4. Voting
    Blockchains are the perfect system for casting, tracking and counting votes such that there is no question of fraud, lost records or any kind of corruption. This system could be applied within businesses for internal voting or potentially customer survey voting. The application of blockchain for voting at the government level would see a massive reduction in the cost of each vote as well as the benefits of no human error or corruption.
  5. Supply Chain Visibility
    If your business operates a supply chain, especially if it is global, how are you currently tracking the location and condition of supplies as they move from A to B and onward? Utilising the distributed ledger that forms the Blockchain combined with sensors inputing data you could have visibility of the entire supply process with no faults, remember the Blockchain cannot lie, once a transaction or record has been recorded, distributed and accepted by the system it is not able to be undone.

Above are just a few potential uses of Blockchain technology within businesses. Detailed below are some links to popular sites that further explain Blockchain technology.

 

 

If you or your business is interested in discussing Blockchain please don’t hesitate to reach out to us at solutions@championsofchange.com.au.

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