7 Vital Blockchain Technology Applications
Improving All Aspects Of Business
It is only a matter of time before distributed ledger comes to the enterprise. The most famous examples include blockchain technology applications that have the potential to change numerous areas of any organization.
Here are seven key blockchain technology applications that could impact security, IT, supply chains, payroll, and more:
1. Smart Contracts
Blockchain is helping to facilitate the credible transfer of money, goods, and property. Known as a smart contract, this computer protocol is being leveraged by organizations as a way to cut down on traditional contract fees and to increase the autonomy of transactions. Traditionally, businesses would have to work with a third party, such as a lawyer, to execute a contract with another party. By contrast, a smart contract eliminates this unnecessary middle man and automatically enforces any contract guidelines. Due to the decentralized nature of smart contracts, both parties are unable to change the contract without automatically alerting the other party. If one party breaks the contract, the other party receives a refund. The smart contracts market is projected to be around $300 million by 2023.
With identity theft and security rampant, blockchain offers a more secure way to manage digital identities. Current methods of digital security involve passwords that can be vulnerable to hacking, with numerous cases of unauthorized access in the enterprise. Blockchain-based authentication offers a method that prohibits unauthorized access. It uses digital signatures and a private key to confirm the correct identity of the owner, which means that only the real owner will be able to access the digital assets.
3. Mobile App Development
The development of mobile apps could get a lot of easier thanks to the use of blockchain. With this technology, developers are able to store app related data on blocks and use the ledger to transmit the data. Whenever one change happens within the data, the information is distributed across the ledger. This results in improved app management and it increases data transparency. By acting independently, this technology allows app developers to focus their attention on less mundane aspects. As blockchain technology advances, mobile leaders will be likely to leverage it for app lifecycle management.
4. Cloud Storage
Typically, an enterprise would rely on a centralized server as part of a robust cloud computing strategy to store data. The next big trend with blockchain technology applications is to use the solution to decentralize data storage. In turn, this will improve security and privacy. Known as distributed cloud storage, this strategy uses blockchain and cryptography to protect data. This peer-to-peer decentralized technology breaks up data and encrypts it across different drives to enhance security. The solution decreases the potential for data leakage. It is also more efficient than the traditional method, which results in a cost savings for data storage.
5. Supply Chain Management
Supply chains are rapidly embracing blockchain, with manufacturers, transportation companies, and retailers testing out the technology. Distributed ledger technology allows these enterprises to track and document every single step in the supply chain. Since the data is decentralized, it is more secure, more accurate, and more transparent. For example, Walmart is leveraging blockchain to track produce (such as lettuce). The technology allows Walmart to improve food safety in its store. In case of another of another harmful bacteria outbreak in lettuce, Walmart will be able to identify the source of the outbreak and prevent a potential health crisis.
6. Internet Of Things Devices
Blockchain can play a huge role in Internet of Things (IoT) devices by managing the network and assessing the security of the devices. The combination of blockchain and IoT (known as the Blockchain of Things or BIoT) can legitimize data, strengthen privacy agreements, and protect communications between devices. Blockchain can also accelerate the speed at which devices transmit data by minimizing the time to validate transactions. This improves efficiency, while simultaneously decreasing the cost of scaling IoT devices.
The most well-known use of blockchain involves cryptocurrency, so it is appropriate that enterprise payments could be enhanced through this technology. Several bitcoin-based solutions allow enterprises to conduct payroll with remote, international workers. By using blockchain technology applications for payroll, there will be lower fees from international bank transfers. This solution also accelerates the payroll process. The use of a distributed ledger allows enterprises to have a transparent record of all of these payments.
These blockchain technology applications have the potential to modernize the enterprise. Which of these solutions are you already using?
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