Blockchain as the name implies is a collection of data blocks interlinked inform of a chain by cryptography. Many will easily imagine crypto currencies like Bitcoin and Litcoin once a blockchain is mentioned but not all blockchain technology involves a crypto currency. In the following paragraph, we will be looking into the cutting edge ways blockchain is quickly changing new or existing startups and enterprise companies generating my ROI.
Before the advent of blockchain, businesses rely on a central approach of communicating and rendering services. A network of company participants don’t know what each faction is doing so relying on what the data push across to them. Blockchain solves this problem by introducing transparency. Information on every processing step is relayed without permission to others in that network at great speed and is immutable.
Blockchain transparency finds its usefulness in supply chain companies. Due to blochcain’s immutability, sources of medical, edible or non-edible products can easily be verified by a consumer thus preventing counterfeiting along the different supply lines or stops. This in itself will bump up trust from clients around the world for that particular service. Blockchain transparency are useful in verification of images and documents pertaining to an individual meaning that all those documents cannot be doctored anytime in near future.
Lowering Payment Barrier
With blockchain, it is now very easy for anyone in any part of the world to make transactions securely without any middle man like banks in the traditional payment models. Communication now occurs directly between the two participants of in a trade. Now, jurisdictions, fiat conversion and laws cannot prevent an individual from access your products and services making the world a true global village.
One thing has attached so much value to blockchain, and that is the fact that its cryptography cannot be hacked. In light of this, there is trust and reliability in any blockchain project.
In a traditional business model, cost of transaction is always high. This in part is as a result of “middle man” operation. Blockchain as described early facilitate transaction directly between two parties without any middle man like the bank, and hence the cost of processing the fee by middle man is completely removed. This makes the cost of transaction very low in a blockchain business model.
Blockchain is fairly new but big institute are already realizing how important it for business innovation. PWC global finTech report as at 2017 states that 77% of financial institutes are going be integrating blockchain as part of an in production system or process by 2020. It is important to consider how blockchain is changing business bringing it within global reach so as not to miss this opportunity. When you are ready, we recommend that you contact blockchain experts at agctech to discuss and help facility easy and frictionless blockchain integration for your business.
High Transaction speed
Using blockchain to make transactions removes the delays resulting from the middle man processes of the traditional business models where an individual must sit to very transactions are accurate and there is no fraudulent transaction.