Blockchain and Distributed Ledger Technology is very important to business in the current digital age as they can provide numerous benefits to existing business models and potentially revolutionise industries.
In summary blockchains are immutable transaction ledgers which are decentralised, trustless and consensus driven providing businesses:
- Cost Reduction
- Reward Customers and Bring Social Change to Society
Transparency is a major positive aspect of Blockchain Technology, in which the network clearly displays and allow users and participants to view ongoing transactions on procedures within the network. Through this, Blockchain drastically minimises discrepancies and fraudulent activity alongside the benefit of being able to pinpoint exactly where the fault or error occurred .
This aspect of Blockchain is highly beneficial to supply chain and auditing.
2018 was a year where numerous major data breaches occurred affecting numerous users and businesses on a global level where some of these notable examples were Facebook, Marriot, Google which affected tens of millions of users and Aadhar which compromised 1.1 Billion residents in India.
By implementing Blockchain, cybersecurity can be increased in a variety of ways such as encryption, distribution of data as well as just the general nature of blockchain where to hack the network, all nodes on the network need to be simultaneously be hacked to penetrate the network which can be highly expensive.
Overall Blockchain will be highly beneficial to all businesses especially if they are handling sensitive information in this current digital age, whether it is health records and personal details.
Blockchain can reduce business costs in a variety of ways since it increases transparency, security as well as efficiency. Due to the transparent nature, economic and financial data is able to be transparent within the network which can reduce manual inspection as well as intermediaries and third parties.
Manual interventions can also be reduced through the deployment of smart contracts to automate procedures and protocols hence increasing efficiencies.
Blockchain and DLT can be highly beneficial towards government, large corporations and supply chains as the reliance of third parties to manage transactions and keep records are eliminated hence decreasing transaction fees.
Rewarding Users and Social Change
The implementation of blockchain can showcase a company’s social and ethical values and provide a positive revolutionary change to society.
With the large growth in the clean-tech and sustainable energy markets, companies are able to be transparent about their positive contributions to society whether it is providing immutable records on carbon and waste production or even how many trees planted.
In the case of ‘Matter’, their business model revolves around carbon tracking and waste management, which encourages social change by providing rewards to users whom recycle and reduce their waste.
Alongside this, revolutionary use cases can be utilised to bring upon social changes such as providing identification and social services for refugees or even homeless within societies by providing digital identification whilst securing their information through the utilisation of blockchain.
Author: Martin Pham