Since the arrival of blockchain technology in the financial industry, its growth and adaptation into other industries has been almost exponential.
For those of you that aren’t familiar with it, the blockchain is a decentralized, digital, and public ledger containing details of cryptocurrency transactions that have been completed. It has grown to such an amazing extent that experts have predicted that it will soon become as ever-present as the internet is.
Blockchain technology is obviously here to stay and will gradually become more relevant in our day-to-day lives. However, there is one big question that remains: what impacts will blockchain have on big businesses? This article aims to shed some light on the likely impacts. Some of these impacts include:
- Supply Chain Management: Blockchain will improve the transparency between big business and their customers. The technology makes it possible to track the origins of whatever goods or services the business is supplying. It then enables businesses and customers alike to have up-to-date in-depth knowledge of any goods and services they are getting.
- Elimination of the Middleman: This is another key effect of blockchain implementation. Transactions on the blockchain are immediate and don’t require the services of an intermediary or middleman. It runs a peer-to-peer service, such that consumers can communicate and transact directly with any said big business or vice-versa.
- Smart Contracts: Smart contracts will be utilized a lot more. The technology makes it easier to prove the validity of any contracts since all of the details are stored on the blockchain. Therefore, once the conditions of the contracts are successfully met, the contract is automatically verified and executed. Simply put, the contracts will be self-executing.
- Altered Storage Options: Blockchain will serve as the safest place to store important documents such as wills, deeds, etc. This is because the blockchain is virtually “unhackable”. It has very complex encryptions that make sure the validity and legitimacy of all the information stored within the blocks cannot be tampered with.
- Paper Becomes Obsolete: The blockchain will bring about a massive shift from paper usage to online storage. Since almost all information is going to be stored on a digital ledger, the use of paper will be drastically cut.
Based on the list above, it can be seen that big business will benefit from the implementation of blockchain technology.
Blockchain will bring about a renewed ease in doing business for big corporations. It will also bring about much-needed transparency and trust between big businesses and their customers. Blockchain technology may just be the best thing that happens to big businesses. If you would like to learn more about the blockchain check out “Blockchain Revolution: How the Technology Behind Bitcoin and Other Cryptocurrencies Is Changing the World” by Don Tapscott, Alex Tapscott
Check back next Tuesday for a new article!