The blockchain is one of the more recent new technologies that businesses have been considering for their offices. Blockchain technology could have been implemented to solve a host of different problems, but the world simply was not ready for it. Is it ready now? Perhaps—let’s take a look at three applications for the blockchain in today’s business world.
What Is Blockchain?
Blockchain technology is essentially a distributed database that stores data. Most databases are centralized, but with blockchain technology, each piece of information is stored on a block, or what is officially known as a node. These nodes are created whenever data is added to the chain, and all nodes are connected to other nodes. This chain of data is not governed by one person, but is spread out and duplicated so that every entity represented on the blockchain has a complete record of it. Each node is also encrypted, meaning that it cannot be edited. If the information needs to be altered, then a new node must be created.
The first technology to use the blockchain was the cryptocurrency Bitcoin, but it’s used for many other purposes these days. Here are three of them:
Blockchain technology is perfect for financial transactions. Considering how everyone with a checking account understands how much of a pain keeping an updated ledger is, you might be relieved to know that blockchain technology makes it easier to manage. Each transaction gets its own node, and since it is a distributed system, it can work for multiple users at a time to create smart contracts. Basically, when two entities enter into an agreement with stipulations, blockchain can enable a payment when the conditions are met, essentially automating the flow of capital.
Improving Supply Chains
The COVID-19 pandemic has created countless problems for the supply chain, but blockchain technology is making it easier than ever to manage effectively. The distributed nature of a blockchain can work through multiple points on the supply chain, and as such, it is a great tool for procurement and distribution. If companies know where each product or component they need is at any given time, then transparency is improved as a whole.
Many users thought that using the blockchain would be ideal for a healthcare system, and companies are trying to leverage it for problem-solving. There are businesses out there creating applications that can improve patient, care provider, and insurance information, all while giving patients better control over their medical information. Security is, of course, a major concern when personal information like this is concerned, so blockchain could prove to be a major boon for the healthcare industry.
Blockchain can be a great and exciting new tool, but we want to hear your thoughts on it. Do you think there is a way for your business to leverage it? Let us know in the comments, and be sure to subscribe to our blog.