How Blockchain-Powered Transformation Is Reshaping Businesses

Blockchain is the “hottest” topic at the moment. It’s disruptive yet transformative in novel ways.

However, many business leaders are unsure what blockchain is and how to make their “elevator pitch” with this evolving tech. In this blog, we have tried to explain blockchain in the best way possible. Also, you would get to know the 360°view of blockchain features, benefits, and project scopes. So, let’s dig in. 

How Blockchain Works in a Business Setting

Consider “you” (a node) has got some transaction files on your computer (a ledger). Two government accountants (say the “miners”) have the same file on their computers. It means the file has been distributed to various parties. As a result, when you make a transaction, your computer sends an e-mail to each accountant and informs them about the action taking place.

Each accountant rushes to check whether you can afford the transaction or not (the first accountant to check it will receive his salary in “Bitcoins”). The first to check and validate will hit “REPLY ALL”, attaching their logic for verifying the transaction (proof of work). Now, only when the other accountants agree to this verification, all the accountants will update their files. This process is termed “blockchain technology.”

 Is blockchain a complicated technology?

Yes, but only as a concept. And so long you don’t understand it thoroughly. Complexities and challenges are just the milestones of the implementation journey to make you realize the value of such implementations. The above example explained may sound like a layman’s language, but a good point to start for beginners.

In the traditional business world, third parties act as intermediaries for financial transactions. If you have ever made an international transaction, you may be aware of the intermediary (mostly a bank that works as a medium). To complete the transaction, you need to wait for 2-3 days, and on top of it, the intermediary will charge a commission for initiating the transaction either in the form of exchange rate conversion or some other charges.

Blockchain is an open-source technology that offers an alternative to this traditional intermediary for the transfer of the crypto-currency Bitcoin. The intermediary is now replaced by the collective verification of the ecosystem eliminating the delay, and offering benefits like a high amount of traceability, security, and speed.

It’s an example of “public blockchain” where there are multiple versions of you (nodes) on a network acting as the executors of transactions and miners, simultaneously. The transactions are collected into blocks before getting added to the Blockchain. Miners receive a Bitcoin reward as per their computational time given to check:

• Whether it is a valid transaction
• What is the right mathematical key to link the transaction blocks into the right place in the open ledger?

With more and more transactions getting executed, more and more Bitcoins flow into the virtual money supply. The miner’s rewards will get reduced every four years until the Bitcoin production eventually ceases (however, experts suggest this situation won’t occur until 2140). Also, the original Blockchain was intended to manage Bitcoin, miners can also use other virtual currencies like Ether and more.

 Why should you care about blockchain?

You may want to know about blockchain technology for one of the three reasons:

1. Blockchain technology solutions not just exist in public, but they can also exist in private. In the private blockchain, the nodes are simple points in a private network and the blockchain acts similarly to a distributed ledger. Financial institutions are under extreme pressure to demonstrate regulatory compliance and many of them are heading towards Blockchain implementation. The secure solutions provided by Blockchain will act as a crucial building block to reduce the compliance cost.
2. Blockchain technology is broader than finance. It gets applied to any multi-step transaction where traceability and visibility requirements are paramount. The supply chain is one of those notable areas with Blockchain getting leveraged to manage and sign contracts, audit products, and provenance. Also, you can use this technology for voting platforms, titles, deed management, and many more. Combining the digital and physical world will only help Blockchain-based applications grow and boost their revenue.
3. By converging the public and private Blockchains, we can exponentially grow its ecosystem where various firms, customers, and suppliers can collaborate in a secure, auditable, and virtual way.

 What are the top features of blockchain technology?

Some of the most striking features of blockchain technology include:

• Concurrency: The ability to handle multiple requests at the same time or process various tasks simultaneously
• Data immutability: It allows all the data within a database model to never get hampered by any recognized or unrecognized sources or entities registered on a blockchain node.
• Smart contracts: It leverages the principle of data immutability with a discrete version management list in chronological order to ensure 100% transparency.
• Decentralization of database: It allows the database with the same original copy to stay available at various user terminals and distinct members connected to the blockchain setup.
• Data security: It is all about encrypted connection gateways, giving access to the authentication process flow of new registries on the blockchain note.

 Conclusion

We have discussed a wide range of aspects of blockchain and how it can transform the entire business world. If you feel hesitant about whether to choose blockchain or not, we are here to help. Our expert Blockchain development company ensures businesses never feel left out of any trending technology. We go the extra mile to ensure that clients get perfectly tailor-made tech solutions to achieve a competitive advantage. Whether you run an early-stage start-up or an entrenched conglomerate company – we got you covered.

FAQs

     1. What do I need to start using blockchain technology? 

• Blockchain is a combination of three technologies, namely:
• Cryptographic keys
• Peer-to-peer network that contains a shared ledger
• A means of computing, to store the transactions and records of the entire network process

2. Which areas can Blockchain technology get implemented? 

Blockchain technology helps secure access to identifying information while improving access for those who need it in various industries like healthcare, finance, travel, education, retail, and more. Hire Blockchain developers from OrangeMantra to avail best blockchain development solutions for various industries group.

3. Which programming language is used for Blockchain technology solutions? 

Blockchain developers prefer JavaScript in web3.js and Ethereum.js to help connect your application’s front-end with Ethereum network and smart contracts.