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What is the Role of Blockchain Technology in Business Transformation?

by appstudio June 15, 2020 Time to Read Blog: 4 minutes

When we talk about Blockchain we usually associate it with cryptocurrencies; however, this technology goes further. Blockchain is a technology with more than 20 years since its creation. It is considered emerging today, with multiple corporate and institutional applications where companies must pay attention and test.

What is Blockchain?

Blockchain has become a buzzword. In 2020, Blockchain in Business is a technology that allows the transfer of digital data with very sophisticated encryption, under completely secure standards. An example: the accounting journal of a company where all the inflows and outflows of money are recorded; we are talking about a digital event book.

It was born as a secondary actor in the bitcoin revolution. It is the technology or the information encoding system behind the virtual currency, and that supports its entire structure. It soon saw the potential that it had on its own and the number of applications it allows in other areas beyond financial transactions, such as public administration or the Internet of things. Now, Blockchain technology is playing a vital role in business mobile app development.

End of Data Centralization & Blockchain Business Transformation

Blockchain is a technology that enables the transfer of digital data with highly sophisticated encryption and in a completely secure manner. Blockchain in Business would be like the accounting journal of a company where all the inflows and outflows of money are recorded; in this case, we are talking about a digital event book. It is evident now that Blockchain is enabling business transformation due to decentralization benefits.

But also, it contributes to a tremendous novelty. There is no need for intermediary between these transfers as it is controlled by the blockchain technology. It is still distributed in multiple independent nodes that register and validate it without the need for trust between them. Once entered, the data cannot be deleted, only new registrations can be added, and it will not be legitimized unless most of them agree to do so.

Along with the security level that this system provides against hacks, we found another enormous advantage: even if the network fell, with only one of those computers or nodes not, the information would never be lost or the service, depending on the case, it would still work. An example that illustrates the importance of the distributed network is in social networks and blockchain business transformation. With this system, Blockchain would eliminate the centralization imposed by applications such as Facebook or Twitter when it comes to identifying or validating the origin of our messages. The node network would guarantee its integrity. A key factor while understanding Blockchain is enabling business transformation is its core structure.

Why So Much Interest in Transforming Companies with Blockchain?

Although many people associate the Blockchain with the Bitcoin cryptocurrency, we are referring only to the use of the technology that supports it. It can be applied to cryptocurrencies or any other type of asset.

You will wonder why everyone talks about it and that more and more companies are betting on this system. Well, the answer is that there are a few factors that are very relevant and are responsible for promoting this technology, which we will explain below:

1. Security:

It turns out to be one of the main problems of conventional information systems. The fear of being hacked and having all your documents stolen is always present in your head. However, that does not happen if you use blockchain technology. Besides, security is an aspect that establishes trust between company and client, because if your Business is safe, they will trust both you and the businessman.

2. Transparency:

This factor is essential for the evolution of the company. In many companies, the problem that exists is the lack of transparency that can make a multitude of customers lose. If they see something strange and are not clear about the company’s issues, they will not trust it. However, transparency is only possible by hiring proficient Blockchain Developers.

3. No Need for Third Party Inclusion:

There is no need for a trusted third party, so several companies that share a problem can manage without a third party to act as a “notary”, saving expenses and eliminating unnecessary dependencies.

Blockchain Applications for Companies

The Blockchain is implemented in companies to improve the efficiency of operating processes, improve productivity, security, and quality of information. It helps achieve transformation; it is necessary to rely on state-of-the-art technologies that support consensus protocols and processes, node communication, and data mining that require a lot of computing power. According to experts, blockchain business transformation and its applications for companies are:

  • Customer identification. The data is shared in banks or institutions to avoid duplicating the process of recognizing or requesting data and documents.
  • Traceability in logistics: For data registration in the process of supply, transport, and marketing of goods in the retail sector. As a salient benefit of Blockchain in Business, logistic companies are getting much with traceability.
  • Traceability of financial transactions: In the stock market, for local and international money transfers, in real estate and for microcredit.
  • Electronic payments: Registration and traceability of digital payments in public commerce and transport.
  • Asset tokenization: Shares, debts, real estate, and works of art are converted into tokens (virtual currencies), which can be sold for infractions.
  • Smart contracts: These are programs that execute registered agreements between two or more parties and that decentralize the management that corresponds to the parties involved. Intelligent contracts are showing that Blockchain is enabling business transformation.
  • Funding source: Initial virtual currency offerings (ICOs) collect financial resources with investors from different parts of the world.
  • Document management: Storage and traceability of legal contracts, inventory reports, and information on operations, among others.
  • Shared databases: When several companies interact with each other and can have a shared database to avoid conflicts over access to information is known as shared databases.
  • Health services: Administration of an electronic medical record is the significant contribution of blockchain systems. Security is a force factor of this technology. It is tough to erase or modify the data. You can identify at all times when and who uploaded, altered, or deleted the information.

“This technology not only solves a technological problem, rather it solves a problem that costs the world millions of dollars: establishing trust,” stressed Walter Johannes, Product Development Manager of Cognitiva for Latin America.

Another advantage is to ensure compliance with internal policies. AppStudio, for example, has a solution that uses artificial intelligence in Blockchain so that companies provide that their collaborators comply with the procedure established in the manuals.

Above these advantages, what is most reiterated is that the Blockchain is based on trust to facilitate interaction between the parties, reduce costs, and create new business models. If you want to explore new business opportunities and transform your companies, contact us. We are the leading blockchain technology expert in the region and provide companies with cost-effective yet most secure systems and apps.

appstudio

Appstudio is a full service Mobile App Design & Development Company offering services in Native iOS Development (Swift 5.1), Native Android Development (Java and Kotlin), React Native Development & Unity Game Development. They have collaborated with Fortune 500 companies, Startups, and Mid Sized firms across a spectrum of industries, ranging from Health Care & Finance to On-Demand Services, to create Mobile apps that are actively being used by Millions of users across the globe.

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