23 September 2020
Blockchain is a technology that started with the usage in cryptocurrency and was often confused that both the components are the same. However, Cryptocurrency is a digital currency and Blockchain is a technology and it is a technology that is utilized to process the cryptocurrency. Blockchain can be utilized for any business and being a paced technology thus is a beneficial one.
Blockchain in the simplest term can be defined as a timeless technology and thus consists of many features that are beneficial and efficient for the business.
Blockchain Technology is decentralized thus it is not owned by a single entity.
Any data once stored in the blockchain cannot be changed or be tampered with hence it is immutable.
The data in the blockchain is stored in a manner called cryptography.
Blockchain technology also has the feature of being transparent.
Blockchain technology is also stated to consist of a secure database network.
These are a few of the features of blockchain that make the businessmen attain the utilization of the technology.
Blockchain technology has two forms of technology called Public Blockchains and Permissioned Blockchains. In a public blockchain anyone can join and be the part of the network while in a permissioned blockchain where the existing nodes access the participant in the closed network, it is also known as a private blockchain.
But what is the system that you are using right now is perfectly efficient? And everything has to be decentralized?
For instance, take Amazon, it is one of the most known and utilized companies that use UI/UX.
A customer can get their order, refund, exchange in a day! So why would Amazon incorporate a different technology and disrupt its process that it does not have any experience with?
Blockchain technology is beneficial but also when you change the system there is a whole lot of process that a company has to go through.
It is very important that a company understands if they want can look for an alternate solution or change their system to the whole other technology?
But is blockchain technology affordable or can it sustain huge amounts of data and the efficiency of time and speed required?
Well if it comes to sustaining data, time and speed, Blockchain technology cannot really be counted on as of now.
The costing for Blockchain technology?
Blockchain Technology requires a tremendous amount of power and thus leads to major effects on the costing of power.
Chris Haley, Corporate Strategy Director at ICF, and Michael Whitaker Vice President of Emerging Solutions at ICF said, “A business case for blockchain must account for a host of potential costs beyond hosting, licensing, and implementation. Energy costs may rise tremendously as the transaction volume increases. On top of all this, a buffer for unknown-unknowns and perhaps a ‘complexity premium’ should be added.”
Even the storage cost is enormous as the database of blockchain is ever-growing with time while each node to maintain the blockchain has to download the data continuously on their computer. Thus to manage the storage with time can be exponentially high.
The use of Blockchain Technology:
Blockchain can be used in the department of operations, auditing as it is transparent and immutable. The assurance of the quality is also one of the factors that blockchain can facilitate as since blockchain is transparent all its data can be investigated and scrutinized.
The things that need to be taken care of:
It is vital that the employees of the company should be trained with blockchain technology. The managers, software developers, IT cells involved should be well versed in blockchain or the company should hire employees that have the knowledge of the field, and it could either be as an employee to work in the operations or to train the other employees. There has to be a well-balanced space if a new technology has to be introduced in the company.
As per Juniper Research-
- 51% feel that the use of blockchain technology will cause “significant disruption” to the partners and customers associated.
- While 35% of companies think that blockchain integration will affect and disrupt the internal operation of the company.
- The shares of a US-based company went 432% up after changing its company’s name from Long Island Iced Tea Corp to Long Blockchain Corporation.
Blockchain Technology is in the hype and the element associated with it for business is the willingness to take the risk.