Does your company use blockchain technology to monitor and control the integrity of contracts? If so, you’ve likely heard about its application in the financial market. Research shows that 40% of global banks already have applications of blockchain technology in place. That is a lot of use cases for this disruptive technology. That’s also where the similarities end. Whereas blockchain was considered a new disruptor technology just a few years ago, today it is being used by companies with decades of experience operating in mainstream markets. This represents a vast majority of global businesses, which is one reason why it’s such an attractive addition to any software product development team. There are several benefits to using the blockchain as part of your business plan.
What is blockchain?
An alternative digital currency, the blockchain is a decentralized, public, and distributed ledger that can record transactions between two or more parties. The ledger is immutable and permanent, meaning no two parties can join together to change the record. Instead, each party publishes a record of every transaction they make, including the hash of the transaction data. This record is then verified and added to an online public key distribution chain. The blockchain system is used to manage data and track progress across a large number of participating parties. The public key is similar to a key distributed across computers in a distributed ledger system, giving it a decentralized, distributed, and public nature.
How to sign a transaction on the blockchain
To sign a transaction on the blockchain, a party needs to sign a block with the public key issued by the other party. To do this, the blockchain-based platform uses an algorithm that generates the public key. This public key is encrypted using two pieces of data: the public key associated with the transaction and the verified transaction data. When a user signs a transaction on the blockchain, they are pretty much signing themselves to the entire world. This is known as an “all-in-one” digital signature.
Why use blockchain technology in your business?
The blockchain can be used to verify and add data to an online public key distribution chain. This allows users to verify that someone owns the items being bought or sold and is not a fraudster. It can also be used to verify a claim against a company for mistakes made in the design or implementation of an item.
Benefits of using the Blockchain in Your Company
Increased transparency – Blockchain technology enables transparency for all parties in a transaction. This includes the data sent and received on the blockchain, as well as the data that goes into the software. It also allows parties to take full advantage of the platform’s decentralized nature, where everyone is allowed to participate in the same data analysis and decision-making. Increased security – Blockchain technology is secure compared to other digital platforms because it relies on each party having a unique public key. This makes the platform highly decentralized and allows each party to maintain full control over their data and sign their transactions with the public key. Increased efficiency – Blockchain technology enables high-speed, near-chain generation with low-cost blockchains. This allows businesses to create cross-chain payments, cross-district transfers, and much more.
Pros of using the Blockchain in Your Company
Easier payments – Blockchain technology is easy to use compared to other networks because it’s based on a very low barrier of entry. This makes it attractive for consumers who can just check out and make a purchase, for example, without going through any extra steps. Flexible order management – Blockchain technology allows businesses to create flexible and agile processes. For example, an eCommerce business can use the blockchain to overlay a mobile ordering feature onto their website, eliminating the need for customers to manually enter orders. Secure digital experience – Blockchain technology offers a level of security compared to other platforms because it relies on a decentralized network. This means that each party has a unique public key and is therefore completely decentralized.
Cons of Using the Blockchain in Your Company
Limited traceability – The blockchain system relies on blockchain technology to manage the data. This means that there’s no way to trace back who sent or received an item. This also means that there’s no way to verify that an item was purchased or sold with the public key. Hard to use – The blockchain platform has a steep learning curve due to its complex and decentralized network. This makes it challenging for businesses to use the blockchain in their day-to-day operations.
Which platform is right for you?
Every business has different needs and requirements when it comes to blockchain. Some businesses may need the option for private transactions while others may want to use a public blockchain. For example, a financial services company may need to operate in a capital market environment where there’s a high volume of trades and payments can be made quickly and securely on a centralized exchange.