Blockchain technology is defined as a decentralized digital ledger of economic transactions, specifically designed to record everything that goes into the transaction up until the final point.
To put it simply, everything except a series of complex code is out on display to the public, and it can be broken down and explained after a lengthy and challenging calculation, making it one of the most secure ways to do money transactions.
Each data record is called a block, and a series of these blocks form what is called a chain. That's how the name blockchain came to be. Each block is composed of three items:
Blockchains are fascinating mostly because they authorize secure transactions without the need for a third-party middleman. Thereby ensuring that transaction costs are marginally reduced. Industries such as escrow for home mortgages, which have an established history of working through third-party institutions can be disrupted using blockchains.
Blockchain technology gained prominence after the uproar generated by the cryptocurrency, Bitcoin. Instances of people becoming millionaires in an instant gave the technology popularity like none of its counterparts.
All of these has gotten forward-thinking companies reevaluating their strategies for this digital age. I have put down ten ways blockchain technology is shaking up the way we do business — and examples where I could find them, with sometimes far reaching changes.
1. Safety and Speed of Online Transactions
It is going to take quite a while for people to fully appreciate the value of the blockchain technology. It is sure to make the web a safer place with its unending advantages. Online purchases will become trustworthy, the chances of your already-paid-for package not showing up on your doorsteps or at your postal address will reduce drastically. It will significantly reduce the chances of your personal information getting leaked. It will speed up the time taken for e-commerce institutions to complete business goals and for freelancers to receive payment for their work.
2. Data Security
Target, Yahoo, and Equifax have all been victims of data breaches. Either by viruses, or by getting hacked, thereby causing the release of personal information of their millions of customers. These are all giant companies with the 'best' online security that money can buy. With the e-commerce industry becoming increasingly extensive, it becomes absolutely necessary to protect it from criminal deception intended to result in financial gain.
Blockchain technology brings a method of recording transactions or digital interactions that is very straightforward, safe, productive, auditable and highly immune to interruptions. It is absolutely important for every cyber security system to have these features. In simple words, blockchain technology will help safeguard the critical intellectual property that is overflowing in the world of e-commerce and freelancing.
According to a Juniper Research, over $51 million is lost every day in advertising, totaling to over $19 billion every year because of fraudulent practices. If left to fester, by 2022 the amount will reach $44 billion annually. Blockchain technology can help marketing and advertising companies reach their goals by clamping down on click fraud.
A digital marketing expert at Accenture Interactive, Amir Jan Malik stated that "blockchain technology was developed to prevent fraud in banking, so the same can be applied the e-commerce level".
4. Better Product Tracking
Blockchain can be used to track the journey of each product in the supply chain. From the manufacturer, to the distributor, and then finally to the retail warehouse. This process helps to keep track of the product so as to avoid loss or tampering and also to raise alerts whenever or wherever health issues may arise.
Being able to capture every major and minor point in the life of a product, blockchain makes it easier to determine authenticity and validity of the product. This can be used for luxury goods and also for rare and distinctive merchandise, like art, or time-sensitive items, such as tickets to a show.
5. Better Investment Opportunities for Employees
A lot of technological know-how can go into hiring, retaining, compensating, evaluating, and firing employees. According to Society for Human Resource Management, the human resource department can use the blockchain technology for streamlining parts of the employment process such as verifying credentials of existing employees and job applicants.
International companies stand to gain the most from the technology when it comes to handling payrolls as it can regulate payments across various currencies.
Travis Parker, COO, IRA Bitcoin LLC, feel that blockchain technology is also affecting how employees plan their retirement as it diversifies their investment portfolio and has more control over their assets.
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Written by John Ade.
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