Blockchain trend got on wheels by the middle of 2009. The innovation took birth when Satoshi Nakamoto published a theory of sending the peer-to-peer type of electronic cash. The concept coined the possibility of sending the online payments directly from one party to another without going through any financial institutions or any other third party intermediaries.
The concept got a wide range of acceptance since then. We have witnessed the bitcoins up and down in the last decade. Bitcoin concept was so simple that it envisioned to stop the concept of double spending in the market. This was achieved through timestamping transactions via hashing them into an ongoing chain of hash-based proof-of-work network. The subsequent result was a record of the transaction that is immutable in characteristic. Under blockchain, no changes can be met without redoing the entire chain from the beginning.
Each bitcoin transaction is recorded in the blockchain. From the perspective of electronic cash and transaction, blockchain has much potential in terms of its capacity and can do much more in the business sector. Even if the trends are widely accepted in the business world, it is important to know how this blockchain trends could help your business.
Some of the main application includes:
1. Smart Contract
The smart contract is a protocol that is intended to execute some code of lines without the intervention of a third party. Smart contracts can be termed as a digital form of conventional contracts, which can now be implied for transacting the digital form of assets. This buzzword coined at the beginning of the 1990s.
After the introduction of Ethereum blockchain, the smart contract concept became more prominent among the mass. Ethereum decentralized projects that run on smart contracts opened new doors-creating applications that perform various transactions without any intervention of censorship, downtime, fraud or third-party interference. It is seen that a smart contract helps to run self-automated predefined transactions without any failure.
The smart contract helps to run and record transactions smoothly and efficiently without any failure. This may reflect in the smooth running of financial transaction and even each term of contract applications.
2. Digital Identity
Keeping digital identity nowadays is risky and proving identity is strenuous. These two woes can be easily solved by integrating blockchain into our solutions. Blockchain is so secure that if we store our identity, for example, our ID card, employee details, our academic credential details, etc into blockchain network, the data remains assuredly secure, safe and immutable. The exists no fear of losing the details.
Digital verification is possible with Blocktick (EOS blockchain document verification), Blockcerts(Ethereum blockchain document verification) making it easy to issue and verify digital identity through blockchain.
3. Paying the Employees
Use of cryptocurrency has changed the way how financial management is going on. Today it is very easy to maintain payroll across the cross border. One can manage the payment easily and instantly by using the cryptocurrency payment method. Anyone can use this application in exchange for goods and services. One can make any payment using cryptocurrency so easily and fast.
4. Supply chain Management
Blockchain significantly proved its role in supply chain management. Use of distributed immutable shared ledger makes it possible to track every moment occurring in the supply chain. If one distributor makes any change in any ledger, it automatically gets reflected in every individual ledger who participate in the chain. By integrating the self-executing smart contract, it makes possible the tracking of products, distribution management and also the instant payment. Transparency is fully eliminated by implementing blockchain technology.
Major five signs that could need to identify that you need blockchain for your business :
1. When we need a secure Database.
When your business needs a big database which you need to share with many people, the factor of trust comes under scanner. There exists a notion of trustworthiness, safety and more while sharing them. One can evade all these worries via simply navigating their database to the blockchain network.
Everyone on the blockchain network has equal access to the same information, and whenever there is a change happening, it guidelines that it should meet some rules of a blockchain network and also it should reflect upon everyone's ledger. If the transaction(means change) occurs in certain fields or area, a valid authorization is demanded and if data is changed, it should be recorded and that records are to be in immutable format.
2. When we need a proper verifiable Audit.
Blockchain is an immutable transaction which uses a secured cryptography technology. Transaction in the blockchain is stored in blocks, each block is connected to its previous block using a key which is a cryptographic hash data of previous transaction data. This will lead to a verifiable audit trail, all the way back to every previous block in the blockchain.
3. When we need an intermediary to verify on our behalf.
Blockchain uses a trustworthy nature by building certain consensus and assure everyone on network work according to the consensus that is created by blockchain. Sometimes a business needs to use the third party to verify a certain transaction. Especially in financial areas, we need to authenticate banks for certain transaction to get verified. By implementing blockchain it will solve the issues with respect to intermediaries and it helps in saving a lot of time and money. Cross border payment is secure and fast than the current intermediary transfer method.
4.When we use contracts to execute transaction between parties.
Here comes the use of smart contract at its best. A smart contract will easily manage the contract without intimidating the third party. Each transaction executed electronically then there is no chance of untrustworthiness between parties.
5. When we need transparency in our transaction.
Blockchain itself is built to provide complete transparency across the network. Public blockchain Ethereum, EOS, Bitcoin offers a 100 % transparency in the network. Public blockchain offers anyone to access network, and there is some private blockchain which keeps data inside some authorized network by providing permission-based access. Complete transparency is needed for some institution like financial areas, government areas, charity organization can use a public blockchain to simplify its process.
In nutshell, the blockchain technology keeps in themselves the immense potential to transform business transactions with no fear of losing or encrypting data. It smoothes and quickens the whole processes evading every role of intermediaries.