Blockchain in business: influence and application
According to the analysis carried out by Transparency Market Research, the volume of the global blockchain market will annually grow by 59%. Its popularity among business spheres plays one of the leading roles in this tendency.
Pros of blockchain for business
Blockchain-driven processes are fully protected and open to verification, which makes the technology an attractive tool for business. Due to the system‘s transparency, it’s almost impossible to cook or change the data in a one-way fashion. In this way, decentralization protects data from cyberattacks.
Blockchain allows to optimize and simplify many blockchain-fueled processes thus saving time and money. For example, DLT-based e-payment algorithms can be faster, automated, and easily track. Particularly, e-commerce companies will gain profit.
Blockchain tech reduces transaction time. No third party is involved in the process, which helps develop international trade.
Despite the uncertain status of blockchain in multiple countries, there are many cases of the DLT integration to business. A transaction carried out between Seychelles Trading Company and the Irish manufacturer Ornua appears to be the first one based on the DLT. Due to blockchain-driven verification mechanisms, it took only 4 hours while similar transactions usually require at least a week. Optimized processes not only save the company’s time and money but also mitigate risks of document forgery and fraud.
The tools that the industry may offer to big and small business are constantly introduced. They include the following services:
- Smart contracts. Intelligent contracts automated by a programmed algorithm. They are transparent and work without intermediaries, the program checks and verifies all terms of the potential agreement. Therefore, one can quickly rent a car or a bicycle. A blockchain-fueled app is all needed.
- Data storage. Data cloud storage without blockchain integration is always connected to one server and costs the earth. The distributed register solves this problem, so the network members can earn money, and companies have an opportunity to reduce expenses on data storage and considerably protect it.
- Efficiency proof. The lion’s share of products entering the market is created by the entire chain of companies and suppliers. Blockchain tech would help assess the performance of each participant at various stages.
Application of blockchain in various countries
Blockchain–fueled optimization of business processes becomes commonplace around the globe. In Russia, pioneers of the DLT inclusion were Alfa-Bank and Sberbank Factoring. They developed and launched an Ethereum-based blockchain platform for factoring operations. It allows connection with suppliers and documents verification. By the way, the system is time-efficient, reduces paperwork, and ensures privacy.
The renowned heavyweight Microsoft also leverages blockchain. The company developed its home service Azure integrated with ConsenSys technologies. This Ethereum-based platform gives clients an opportunity to test blockchain and create own systems even not having any experience in working with the decentralized technology. Microsoft offers specially designed tools BlockApps Strato and Camp that help beginners. The IT giant also accepts Bitcoin for software, games and programs for Xbox.
The DLT can also be effectively used in other state spheres related to document flow. For example, in taxation. In Florida, tax officers cooperate closely with BitPay developing solutions for tax acceptance in Bitcoins.
Georgia appears a pioneer of blockchain implementation in government. As a result of the joint work of Bitfury and the National Agency of Public Registry of Georgia, DLT-driven services were introduced. They allow quick and secure registration of bills of sales, sale of the property right as well as many real estate operations.
Specialized conferences are the only way to find out how to implement blockchain in business. One of them will take place on September 27 in the capital of Azerbaijan — Blockchain & Bitcoin Conference Baku. However, even having absorbed the firsthand information about blockchain inclusion, don’t take every individual case study for granted: only by trial and error can one understand whether particular solutions would be effective for business.