Why you should adopt blockchain for your business

Why you should adopt blockchain for your business

The need for trust in our businesses can never be overemphasized and what better way to ensure trust than to adopt a system that has been built to run on trust and transparency.

I will begin this article with a quote I came across on the wise street of the internet, it reads, "Whether a friendship, family relationship, or business or personal partnership, any bond is built on trust. Without trust, you have nothing".

The need for trust in our businesses can never be overemphasized and what better way to ensure trust than to adopt a system that has been built to run on trust and transparency.

Blockchain technology is the greatest technological innovation of the present age and the mass adoption by different industries has proved that blockchain will birth a new direction for our digital life. Businesses can take advantage of this system to better the industry in so many ways but first, some questions need to be asked and answered.

What is blockchain and how is it trustworthy?

blockchain-3055701_1920.jpg

In simple terms, a blockchain is a digital ledger that is updated continuously. One might ask what the contents of this ledger are but it's nothing technical, just records of transactions. These records may include the time, date, amount, and participants involved in the transaction.

This ledger is contained in a block that is encrypted and cryptographically linked together with other like blocks to form a chain - a blockchain.

Unlike centralized systems, like the bank and other facets of the current financial system, blockchain does not recognize a central figure or body. The ledger is distributed to every member of a blockchain, giving them equal access to the information embedded in the system but with limitations to effect change. It's fascinating really.

For hackers or any criminal groups to even stand a chance to tamper with the information, they have to target all the individuals involved in the chain before the system gets updated. The absence of a central figure to control the distribution of information makes it difficult to attack.

What are some real-world applications of blockchain?

Around the world, different financial services industries are adopting blockchain to provide better service to their users. For example, the stock market in Australia has approved the use of blockchain to complete transactions. Also, it would be utilized for recording shareholdings, managing clearings, and settling transactions for equity. These new services will save costs and improve productivity.

In addition to what the Australian stock market is doing, money transfer platforms like Abra – a platform that allows people working abroad to send money to their folks back home – have also approved the use of the technology in their services. It uses blockchain to ensure fast and cheap transfer of funds which would also provide better services when compared with traditional transfer platforms like Western Union which according to reports from the World Bank, cost an average of 7% of the funds sent.

Another use case of blockchain involves a collaboration between three companies of different industries to sustainably source fish in the Pacific Ocean. It involves an IT firm – TraSeable –, a tuna fishing and processing enterprise – SeaQuest Fiji – and ConsenSys – a blockchain company – coming together to track where tuna fishes are caught and how they are sold.

The network records each transaction from fishermen to brokers and local fish markets or grocery stores, assuring consumers about the quality of the tuna and how they were caught.

How can blockchain impact entrepreneurship?

World-leading corporations like Unilever, Toyota, IBM (which boast of more than 300 blockchain projects), Microsoft, and Facebook (recently changed to Meta) have gotten into the blockchain business. This doesn’t mean blockchain can only be utilized by big corporations, small brands can also get involved.

Since the technology is set up to ensure trust and transparency in transactional relationships, any business that acts with verifying transactions should research the different ways to incorporate blockchain into their company.

Imagine a company that supplies goods to large organizations, adopting blockchain technology to digitally keep track of their processes, trace their products and also record the cost of each supply made. It takes record keeping to a whole new level.

The application of blockchain in supply chain logistics will give companies a new direction for shipment tracking, payment making, and ensuring smooth transactions generally.

For instance, Maersk, the largest shipping company in the world has begun trying out blockchain for a while now. This move is directed at keeping track of its cargo in agreement with Dutch customs law, the United States Department of Homeland Security, and the company enlisting its service.

In the fashion, a local grocery store could use this technology to keep track of inventories and stay connected with wholesalers who can utilize the technology themselves to notify trucking companies to pick up goods and deliver them to the retailers and store owners. This chain of supply can all be verified by blockchain and payments made in a transparent and trustworthy way.

Conclusively, while there are some concerns over the environmental impact of verifying blockchain transactions, there have been mechanisms incorporated into the system to curb the fears and make transactions safer.

Also, the adoption of blockchain technology is still in its infant stage and early adopters are sure to benefit in the long run. Thus, business owners should look into introducing the technology into their businesses for better services for all.

;