According to Gartner, by 2022, Blockchain based businesses will be worth $10B. Moreover, by 2020, new businesses and business models will emerge based on smart contracts and Blockchain efficiencies.
Despite Blockchain being an emerging technology, it is flourishing day and night while expanding its reach to different industries rather than being restricted to Finance and IT only. Organizations are adopting Blockchain due to its promising features like security and decentralized ledger. In addition to security, Blockchain helps to streamline complex financial processes as well as free up cash, create new forms of value, reduce transaction costs, accelerate business processes that lead businesses to adopt Blockchain.
Experts say, “Blockchain will do to Financial System what Internet did to Communication.” Similar predictions exist since Blockchain holds the power to change the bases of our economic and social systems. We know what Blockchain has to offer but only Time will tell how much potential Blockchain has to change the pioneering of Businesses. Yet, predictions have circulated tremendous amount of rumors that have influenced people’s minds and misguided them. Hence, we are going to enlighten you with essential facts, which you must know before you embrace Blockchain.
1. Blockchain- ‘One for All, All for One’
Unlike other technologies that have been invented till today, Blockchain goes beyond the set parameters. It is not merely technology for IT associates to learn and experiment, but it is here to revolutionize methods of running business across all industries.
Decision makers are considering adopting Blockchain and many have already implemented due to Blockchain streamlining complex process along with security. Created with the most difficult cryptography, it is the most secure platform for financial transaction, digital assets, digital media, digital information and contracts that make it unique and useful across all the industries along with saving money and time without any intermediaries. Eliminating the need to keep intermediaries simply means minimal chances of fraud, increased trust and foolproof security.
With Blockchain coming into the picture, the medium of sharing, exchanging and interacting changed completely giving birth to a new perspective to look towards running businesses while affecting small businesses to globally expanded organizations. Hence, it has the potential to revolutionize industries including Banks, IT, Finance, Healthcare, and many more that have a strong effect on our society. If Blockchain is fully implemented, conventional way of managing governance, administration, operation and accountability across organizations will be revolutionized from the basics.
2. Blockchain will not take over your financial system completely, Not Yet
Considering the pace Blockchain in growing, experts predicted Blockchain to take over entire financial system leaving no trace of conventional way of managing finances in any business. However, the time is yet to come to witness complete financial revolution due to Blockchain.
Although Blockchain has no common ground nor resemblance to the conventional way of managing finances, Blockchain does not aim to replace the entire financial system yet.
Instead of decentralized network, current financial systems use closed network that is through intermediaries while relying on core banking and enterprises. As a result, investment and dealing through these means will stay relevant even after you have adopted Blockchain considering they find a solution that allows them to co-exist with conventional way of working. Thus, a smart decision would be leveraging the benefits Blockchain has to offer instead of replacing the entire infrastructure.
Adopting Blockchain means eliminating centralized authority and regulatory system. In addition to looking over transaction and exchange, the centralized authority works, as a mediatory trusted by both the parties along with providing the user unique rights. On the other hand, Blockchain does give full access and doesn’t provide special rights to any user over the network. Thus, on the positive side, users do not have enough rights so that gives us assurance to remain free from fraud and malpractice proving to be a better system.
3. Take a Trial before implementing Blockchain
No matter how big or small the enterprise is, before adapting a new technology, strategy, methodology or make major changes in the system, it is necessary to take a trial before implementing it completely. Blockchain, being a completely new technology can bring many major changes into your organization that gives even more reasons to take a trial before adopting Blockchain.
Firstly, consult an expert, create a plan, and acknowledge the duration you will need the plan to be tested. After implementing, observe closely throughout the process to ensure the adoption will be helpful and not disrupting in any way. The trial phase will help you understand how the technology works, what are the relevant key features for your business, how you can use it to your advantage.
4. Blockchain is Free but the cost of Storage on Blockchain Database could be Expensive
When Blockchain being decentralized is boon, the outcome and benefits come at a price. The distributed and shared ledger means all the data is replicated and stored in every copy of the ledger at each node. While transacting through digital currencies such as Bitcoin, this concept works to your advantage where only the data stored is details related to transactions of Bitcoins. However, from the business perspective, it would be quite expensive to maintain heavier information like documents or images, audio files to be stored and exchanged at every node. Identifying the needs and usage of Blockchain in your business will help you come to a decision.
5. Transparency v/s Confidentiality
Changing the way of sharing and exchanging files, documents and transaction, Blockchain has the potential to transform all the industries including banking and finance, health, IT, education, media, almost all the industries could get affected. It will affect the way internal and external exchange and sharing of files takes place and transaction as well. Since Blockchain is popular for being decentralized and open to all, all the data is accessible. On the other hand, at times businesses need to keep few things confidential, or share with certain people yet keep secured. This is contradicting the nature of Blockchain. When it comes to Blockchain, collaboration and competition must be distinguished along with what to share, how much to share and when to share.
Evolution Vs Revolution, shifting business focus towards Blockchain will definitely involve proactive steps with trusted software development partners. It is important that you understand your Business Problem or Business enhancement that you wish to bring very well and acknowledge the scale of intended network, understand the relationship among users, requirements both related to functional and non-functional aspects such as performance and confidentiality before determining the right platform and the right model to use that will be beneficial to your business. Allow us to assist you in your digital transformation journey ahead, get in touch with us at email@example.com