Blockchain has entered the enterprise ecosystem at a breakneck pace. The global market size of blockchain technology has been expanding at a steady pace. According to the reports, the market is expected to value at $23.3 billion by the year 2023. The growth rate for the period is estimated to be 80.9% CAGR. In another report, Blockchain is estimated to generate $3.1 trillion in new business value by 2030. In every aspect, Blockchain appears to have a bright future.
What is Blockchain?
Blockchain is widely hailed for its five elements which are;
The Blockchain participants are connected through a network. The different connecting nodes contain the complete copy of the ledger and get updated with new transactions.
All the data is secure in the blocks using public and private keys. The participants are capable of sharing their identity and information as per requirement.
Every transaction in the Blockchain network is cryptographically signed and assigned a time stamp to create a sequence of transactions. These records cannot be changed without the mutual agreement of the participants.
The value in the transactions is used in terms of tokens representing every entity, including the physical and financial assets.
The nodes in the network work in a consensus mechanism wherein any single entity cannot control the ledger.
Why do Businesses Need to Adopt Blockchain?
Multiple factors are contributing to the growing adoption of the Blockchain by businesses. Some of the primary factors are:
- Need for a multi-party environment consisting of multiple participants, clients, contractors, and vendors.
- Need for a trusted mechanism to operate varied processes, data flows, modes of communication, and frequencies.
- Higher customer experience
- Better transparency in transactions
Advantages of Blockchain Technology
Blockchain offers many advantages to businesses that can benefit them in multiple ways. Some of the advantages are:
1. Greater Transparency
Transparency in transactions enhances the trust of the involved entities, besides improving the productivity of the entire process. The transaction ledger in Blockchain for public addresses is open to viewing, increasing transparency. This adds accountability in the business transaction where every involved entity maintains the integrity of the business.
2. Higher efficiency
The decentralized mechanism and lack of intermediaries make Blockchain apt for every business, including payments and real estate. The P2P cross-border transfers and digital currency make transactions secure and fast. Furthermore, smart contacts and a unified records system make the property management system systematic.
3. Better security
The encrypted and linked transactions form a secure chain where every information and transaction is encrypted for security. The immutable nature of Blockchain makes it incorruptible and safe from hacks. The decentralized nature also enhances the safety of the transactions.
4. Improved traceability
An audit trail initiates after every exchange of goods to keep the complete information of the transaction in place. Blockchain has the mechanism of verifying the authenticity of the traded goods and recording the related information in the blocks. Different industries use this way to secure various transactions. For instance, the Blockchain tracks the supply chain from manufacturer to distributor in the medical sector. Similarly, Blockchain is used in the art industry to create a proof of ownership.
Use Cases of Blockchain in Different Industry Verticals
Uncountable use cases have emerged for Blockchain in a myriad of industry verticals. Let us examine a few of them.
- Pharma industry
Blockchain maintains the entire process, from patient health records to medical documents. In addition, the clinical trial dates and other records are maintained using Blockchain to keep a check on anti-counterfeit.
Finance companies can use Blockchain to smooth currency transfer flow and maintain KYC data, mortgage contracts, and other details that require recording and tracking.
- Retail and CPG
Businesses can use token mechanisms for the allocation and redemption of rewards. In addition, Blockchain can also be used for the registry of automobiles and ownership transfers.
Businesses in the logistics sector are using Blockchain to track vehicle movement and duty records. The ledger system can manage an array of activities, from vendor registration to vendor contracts and service agreements. The overall supply chain can be controlled using Blockchain.
Blockchain can be used across all processes in a range of industries.
The Future of Blockchain
A digital signature is a widely accepted aspect of Blockchain. Image-based and cryptography-based digital signatures are used in different businesses and industries. For example, companies use a digital signature to optimize investment and reduce the control mechanism. DeFi, which stands for Decentralized Finance, has emerged as the fastest growing sector in the Blockchain ecosystem. The forward-thinking companies are seeking this next frontier in Blockchain to create decentralized architecture for financial services, including lending, borrowing, and saving.
Another rapidly growing sector is Blockchain middleware technology which enterprise systems can use to develop interactions with any Blockchain. In addition, companies are using such advanced Blockchain components to ‘future-proof’ themselves.
The Blockchain industry is experiencing continuous innovation in technology. This is the right time for every business to adopt Blockchain and enhance the robustness of their supply chain and other processes. Digital signatures and smart contracts are only a few of the stepping stones. Adopting Blockchain today will allow companies to focus on the ways of implementing it. Blockchain is a futuristic technology ready to revive the way the economy operates. Time-tested solutions have the potential to enhance the productivity and scalability of every business. A Blockchain development company can help you understand different aspects and develop a Blockchain-based infrastructure. Companies are using Blockchain in combination with other advanced technologies such as cognitive analytics and IoT to enhance the transparency and productivity of their business. Blockchain and automation are helping companies go smart and paperless. Data sharing in a secure digital space is the new reality every business needs to accept to thrive in the growing competitive environment.