Since late 2017, the crypto space has been a wild roller coaster ride with incredible highs and extreme lows. While many around the world herald bitcoin as a revolution in finance promoting freedom and fighting the power of government-backed fiat currency, others point out the volatile price fluctuations and caution against scam coins.
Amid all of the noise, however, there’s one thing we can claim for sure: the underlying technology powering the crypto wild west – blockchain – is here to stay.
Blockchain technology, also referred to as distributed ledger technology, has a wide range of uses outside of cryptocurrencies. From supply chain tracking to digital rights management and smart contracts for the legal sector, the applications seem endless and the enterprise space is certainly taking notice.
For companies on the fence about making the jump to blockchain, here are three reasons to consider blockchain for your business.
1. Data Security: Better protection for you and your customers
Over the last decade, data breaches have made headlines worldwide. As a result, the public has demanded better transparency and rights to control their personal data, as well as improved data security in the business world. In Europe, this has led to the creation of the General Data Protection Regulation (GDPR), which holds businesses accountable for the mismanagement of personal information and levies enormous fines for violation.
Securing data is currently one of the highest priorities for businesses around the world, whether in Europe or not. The consequences arising from data leaks and breaches can be dire.
This is where blockchain can come in. As a decentralized, encrypted digital ledger employing independent nodes across a network of computers, blockchain effectively removes the need for a third party to process transactions or provide data services. This in turn minimizes attack vectors. Another crucial point is that blockchains can be either public or private, with access restricted to certain transactions.
With encryption and validation, blockchain also provides immutable evidence that data has not been altered. This offers businesses independent data verification that is 100% reliable.
2. Smart Contracts: Never worry about another agreement again
The more parties involved in a process, the more trust is involved – and thus a higher likelihood that something will go awry. One way to prevent fraud and contract violations is to use blockchain-based smart contracts.
Trackable and irreversible, smart contracts are digital agreements that allow for “trustless” transactions without the need for third parties or intermediaries. They digitally facilitate the performance of contracts and can make contractual clauses entirely self-executing – functioning like automated “if, then” statements.
The benefits of smart contracts include higher security via cryptography and automation, reduced transaction and labor costs, and a fully auditable process.
3. Supply Chains: Keeping track of products and where they’ve been
The recent E. coli outbreak caused by contaminated romaine lettuce is an excellent example of the upheaval that can result from inefficient supply chain tracking. The U.S. Food and Drug Administration (FDA) now recommends that romaine lettuce packaging be labeled with harvest dates and locations – but another powerful solution is to use blockchain-based tracking.
Greater supply chain efficiency and clarity would be a major boon to the world economy. On a smaller scale, individual businesses can benefit from a blockchain-based supply chain management system with full traceability and transparency.
With instantaneous updates and verification from each network participant, blockchain can offer better asset utilization and streamlined inventory management, among other benefits.
At Olypsis Technologies, our blockchain developers can help your business take advantage of the value provided by blockchain implementation in numerous sectors – and ultimately achieve innovative growth while remaining on the cutting edge of development.