Before we look at how blockchain based solutions can benefit your business, let us first clarify what blockchain is. Blockchain is a form of database, but instead of being able to write and delete data at any point in the data set like a conventional database. Generally, blockchain writes data in blocks which are linked in a chain formation. This has the advantage of locking the data that is written so that it can’t be deleted or edited. A couple of qualifications here, a conventional database has its place precisely because the data can be changed, so they are not going away. But as we will see blockchain is ideal for a whole range of applications, that before it, were not possible. The other qualification is that some blockchains are not chains, they are more complex formations of block links, but the principle is still the same. The block before and after the block in question locks the data in a time and date stamped archive so that you can trust the validity of the data.
Why is trust important?
If you are carrying out a transaction with unknown parties, maybe one on the other side of the world, blockchain based solutions can provide a way to make that transaction trustless, in other words, there is no need to trust the other party, or have an intermediary like a bank or credit card company managing the transaction. Both parties can be sure that if the transaction is confirmed then it is permanent.
This does not just apply to digital currency payments, the same applies to smart contacts which are blockchain based solutions. They also can be trusted to automate a process when their program code is instructed to do so.
Why is it most efficient to use blockchain based solutions?
There are a lot of reasons for this, but the main ones are as follows.
Human resource savings
Blockchain based solutions can improve a business’s efficiency by reducing the number of times a human is required to carry out a data processing operation. In many cases, this can be reduced to zero, so a process that once required an office full of computer operators and decision-makers can be eliminated from the process completely. This has obvious cost savings in terms of labor and the office environment and equipment required to support the workforce.
Speed
But there are other efficiency savings as well. Blockchain based solutions are also much faster than traditional operations, in some cases reducing something that previously took days to mere seconds.
Accuracy
Then there is accuracy. Because blockchain based solutions are generally automated, running predefined operations that are coded into the blockchain, there are no human errors to account for, find and eliminate. Provided the data that is entered is correct the results can always be trusted to be accurate. And there are ways to automate data entry error checking to weed out human errors at that point.
Who uses blockchain?
Blockchain based solutions are now widely used across many sectors and the number of adopters is increasing all the time. If you have a business where you are looking to reduce the cost of the operation, remove human intervention, speed up transactions and remove the need to trust people that are involved in the process then it is very likely that blockchain can be integrated successfully into your business.
Currently, there is huge uptake for blockchain in the financial services sector because it is now not just possible to automate data processing but to make automatic payments with cryptocurrencies as well. In fact, there is a whole new breed of financial services being created that use blockchain.
Identity is also becoming widely talked about and is now being revolutionized by blockchain. After all, in the increasingly digital world, there is not much point in having physical passports, driving, and other licenses when in many cases are used online to verify our identity. There are many other forms of ID that are also used in the digital space to verify we are who we say we are and increasingly blockchain plays a part in it.
Management of health data is also an important space that is being disrupted by blockchain based solutions, in the form of medical records, personal health data tracking, prescription tracking, clinical trials, and more. Also in agriculture, food production, processing, transportation, and retail there is an increasing need to have much more data about where each item came from, when and who processed and transported It, and who sold it. And there is even now some talk of tracking food disposal.
And with energy usage very much a hot topic, blockchain based solutions are being used to work with smart devices to record data about every device that issuing power to better understand how consumers are using power and when it is most needed.
Why would implementing blockchain solutions benefit my business?
Above are just a small selection of examples where blockchain is currently being implemented or is already in use. There are many more and it is very much a case of using your imagination because there is no doubt that some of the most revolutionary implementations are yet to emerge. Maybe your business could be one of them. But why would you radically change your business which may have been perfectly fine for years or decades to implement a blockchain solution? Simple, if you don’t do it your competitor will!
Nexthash offers you tailor-made blockchain solutions
If you are thinking of implementing a blockchain based solution in your business, NexHash can help you to analyze your business processes and identify which ones can benefit from blockchain based solutions. Our consultants can then put a complete solution together for you that will bring your business into the blockchain era. Finally, our development team will implement the solution and commission the live product. It may even be possible to use blockchain to finance the project. Get in contact for more details and a NextHash consultant will get back to you.