The blockchain, without a doubt, is an ingenious innovation of an individual (or group of individuals) using the name Satoshi Nakamoto in 2008 to function as the public transaction archive of the crypto-currency, bitcoin (Underwood 15). The origination of blockchain for bitcoin has been considered as the first digital currency to support the double-spending mechanisms without the requirement of an authentic authority or main server (Underwood 16). The bitcoin design has been inspirational for multiple additional applications, and blockchains that are accessible by the public are extensively implemented by crypto-currencies (Underwood 17). A blockchain is, therefore, a form of payment platform where advantages and feasibilities are unlimited.
By executing the distribution, not copying, of digital information, blockchain technology has cultivated the framework of a new advancement of the internet. Private networks of blockchain have been suggested for business implications (Iansiti and Karim 127). However, since the network has no principal control, the associated consequences are critical to take into consideration (Iansiti and Karim 127). This paper is going to outline the possibilities of carrying out business with blockchain and what opportunities may be present for the tech-savvy personnel in this domain.
A blockchain, as the name implies, is an increasing list of records that are commonly known as blocks; these are associated with the use of cryptography (Iansiti and Karim 127). Each block comprises a cryptographic mathematic algorithm of the previous block, transaction information, and a timestamp (Iansiti and Karim 127). By design, it is resistant to any sort of alteration or modification and being an open distributed ledger, and it can determine transactions between two associations in an efficient manner with verifiable and permanent techniques (Iansiti and Karim 127). For competitive use, a blockchain is generally regulated by a peer-to-peer network mutually following a regulatory framework for inter-code communication and authenticating new blocks (Iansiti and Karim 127). Once managed, the information in any particular block cannot be changed in a retroactive manner without changing all subsequent blocks, which needs agreement of the network majority. For professional purposes, blockchain records are not permanent, and they may be considered secure in terms of design and configuration.
A blockchain takes into account an infrastructure cost, but there is no transaction expenditure associated (Crosby 71). It is a simple yet resourceful technique of passing information from one point to another in a completely protected and automated manner. Not only can the transfer and storage of information are carried out in a secure manner, but the process can also replace all business models and procedures that rely on charging a small transaction fee (Crosby 71). These aspects of the technological improvisation which blockchain offers can add to the business notions and possibilities.
Most businesses in the modern world lag behind financially due to human inaccuracies, procedural delays, and charges that are designated by multiple organizations (Swan 1). However, financial stability and profitability can be achieved with the help of implementing blockchain as a technological medium (Swan 1). Being a faster, more efficient and cost-effective medium, blockchain applications can provide multiple solutions.
Businesses can implement blockchain technology to have smart contracts. A smart contract can be defined as a self-executing agreement that has the requirements of all members written into the code directly. The requirements and code of the contract are present on a decentralized blockchain system (Nofer et al. 185). With the help of smart contracts, it is possible that all members involved in the agreement perform how they are supposed to (Nofer et al. 185). These programs are based on automated structures which are implied without any downtime or inhibition from the external sources (Nofer et al. 185). Smart contracts confirm the payment once the businesspersons deliver the outcomes in a constructive manner. If there are any returns on short duration, the products and services are returned.
Blockchain for business is the ultimate solution for organizations that are hiring multiple individuals as sales representatives or managers of their social media campaigns. With the help of different databases, access to feasibly certifiable records is possible (Nofer et al. 185). This includes academic information, extracurricular activities, previous records of employment, and references; blockchain stores all of this valuable data on an unalterable digital platform. Organizational moderators can simply find promising candidates and confirm their legitimacy, selecting the person on the spot.
Blockchain can assist business financial functionalities having an association with Bitcoin. Brands and enterprises that are working in foreign regions can pay employees in crypto-currencies on the blockchain (Nofer et al. 185). The process is also effective for compensating employees across the globe in less than an hour without extensive charges on the transactions (Nofer et al. 185). Businesses can also track cash flows and maintain all of the payments in a consistent manner.
Blockchain simplifies consistent identity management. Consumers and employees from all parts of the world have digital identifications that formulate the patterns for identity verification (Pilkington 225). Once this information is stored on the blockchain network, it decreases the potential incidents of identity theft, fraud, money laundering and additional queries of cyber-security. Any consumer who is being communicated for a product or service can be verified online. Evident and clear records of transactions can be of greater use as consumers can be targeted and the working relationship progresses over time (Pilkington 225). With the technological advancements of blockchain, business personnel can highlight regular consumers, determine their purchase patterns and outline overall demographics for the brand positioning.
The technique blockchain follows is extremely beneficial for business marketing, as well. Marketing concepts are critically essential for the presentation of products and elaboration of services (Pilkington 225). However, with the number of businesses competing for attention in the modern world, it can be challenging enough to get a fair share of attention and become exceptionally apparent for the consumers (Pilkington 225). Organizations implement multiple strategies such as print media, social media posts, television commercials, advertisements in newspapers and email marketing for brand promotion. However, blockchain may advance marketing efforts in an increasing manner.
Blockchain can be applied by different marketers to keep a record of consumer data and behavioral responses. In alignment with this data, skilled professionals can mediate campaigns that derive greater return on investment (Pilkington 225). If there are any inaccuracies involved, businesspersons can use blockchain to find out where it was made and the time. It is possible to verify the nature of traffic is generated as well.
Cloud storage is another use of blockchain that businesses can benefit from. There are multiple techniques that are being tested by companies offering safe cloud storage with a decrease in dependency (Pilkington 225). Blockchain allows an additional use of space, where users can store data approximately 300 times more. Taking into account the fact that annually, $22 billion is spent on cloud storage mechanisms, this could initiate a stream of profits for regular individuals, while considerable limiting the expenditure to store information in a positive manner (Pilkington 225). Another aspect is the use of Internet of Things (IoT) data and blockchain technology for the professionals and businesses to communicate with the legal entities that have been saved on the blockchain (Pilkington 225). For businesses to purchase a warehouse, all documents must be in a single place for both associations to have access (Pilkington 225). Blockchain provides such links, ensuring that the legal contracts are readily functional without any barriers or interference. This aspect is promising for supply chain management structures, as well.
It is obvious that blockchain technology will soon be supported by several professional companies. The virtue is going to take over and transform future generations in terms of financial and marketing attributes. Businesses in the modern world can, therefore, stay one step ahead and try it out before several reliable options are configured for the cause. Even if the business is in its initial phases, implementing blockchain can provide an enhancement. If there is any confusion present regarding the democratic application of the blocks that are implemented, they could be resolved with the help of programming. The business potential for blockchain is immense; there are some ideologies that are beyond comprehension. With the power of internet and cloud-based systems, nearly every aspect of the professional life can be managed with the help of blockchain.
Crosby, Michael, et al. “Blockchain technology: Beyond bitcoin.” Applied Innovation 2.6-10 (2016): 71.
Iansiti, Marco, and Karim R. Lakhani. “The truth about blockchain.” Harvard Business Review 95.1 (2017): 118-127.
Nofer, Michael, et al. “Blockchain.” Business & Information Systems Engineering 59.3 (2017): 183-187.
Pilkington, Marc. “11 Blockchain technology: principles and applications.” Research handbook on digital transformations 225 (2016).
Swan, Melanie. Blockchain: Blueprint for a new economy. ” O’Reilly Media, Inc.,” 2015.
Underwood, Sarah. “Blockchain beyond bitcoin.” Communications of the ACM 59.11 (2016): 15-17.