Ever since bitcoin and other cryptocurrencies became widespread, people have turned their attention to blockchain and its practical applications. Spoiler: Blockchain is not just about cryptocurrency. In this article, we’ll look at how blockchain technology can help improve business.
Before we get into the application of blockchain technology, it is worth understanding what blockchain is all about. Blockchain is a decentralized data storage system that uses cryptography to provide security and privacy. How does blockchain work? Blocks of information entering the registry are attached to each other in chronological order. The information in the blocks cannot be changed or deleted, only new blocks can be added.
Now let’s talk about areas. Blockchain technology can be applied to a variety of business sectors, including finance, logistics, healthcare, public administration, etc. Let’s take a look at some of them:
Of course in business we interact directly with money all the time. Cryptocurrency payments are faster and safer than standard bank transfers. A decentralized system allows us to minimize risks associated with the human factor.
For example, air carrier S7, in partnership with Alfa-Bank, has developed a blockchain platform based on the Hyperledger Fabric protocol. The blockchain-based infrastructure allows payments to be made in real time, from booking to payment execution by the bank. The new version of the platform reduced the transaction time to 15 seconds.
Another area where blockchain can be useful is logistics. Blockchain allows the tracking of every stage of the production and delivery process of goods, from suppliers to the end consumer, which helps improve product quality and increase consumer confidence.
In 2018, IBM successfully launched a blockchain-based Food Trust Network based on the same Hyperledger Fabric protocol. With it, large stores — such as Walmart — can track food throughout the supply chain from manufacturer to store.
Blockchain can be useful for protecting intellectual property. Have you heard of NFT? That’s exactly what it’s about. In essence, each token is a unique object that cannot be faked or stolen.
In Russia, more than 40 large companies have declared their desire to implement blockchain in business. The pioneers were M.Video, Alfa-Bank and SberFactoring, which launched an open Ethereum-based blockchain platform for factoring operations. Document reconciliation is now as fast as possible and saves about 200 million rubles a year. At the same time, complete confidentiality about the transactions is maintained.
The future for blockchain promises to be bright and promising. Blockchain technology is already being used by many companies and organizations, and this is just the beginning.
In the future, blockchain technology could become an integral part of many areas of life and create new opportunities for businesses and improve people’s quality of life.
However, like any technology, blockchain is not a one-size-fits-all solution to all problems. Before adopting blockchain technology in their businesses, companies must carefully consider its capabilities and limitations, as well as its effectiveness and cost-effectiveness.
