In a market saturated with new and innovative business strategies, it can be difficult to decide which to adopt. On one side you don’t want to fall behind when it comes to the latest technology. On the other, you don’t want to waste your money on a “cutting-edge” fluke. If you’re looking for a new, efficient way to carry out transactions, blockchain is a technology that your company might find helpful. Far from a short-term trend, blockchain is a revolutionary approach to transactions that major companies are beginning to embrace.
What Blockchain Entails
You might wonder why blockchain technology seems so cryptic. The challenge is that it used to be almost exclusively connected to tech circles, and was not widely used by the general public and non-tech businesses. This history is part of why it seems so mysterious today -- it’s relatively new to most of us, and the way it works can be difficult to explain without going into confusing and complex concepts.
Here’s the very short version of it: Blockchain is a way to make transactions and transfers online without the use of an intermediary. Instead of trusting a third party to keep the transaction history safe and accurate, blockchain lets you seal “pages” of transactions with a key code for security.
Individuals and businesses use blockchain for a variety of reasons. Though some “shady businesses” might use blockchains to avoid leaving a paper trail, it’s more often employed to gain improved assurance and privacy. It also allows users to exchange money without the backing of a physical currency, which is one of the qualities that has made Bitcoin famous and makes it sometimes controversial.
Speaking of Bitcoin -- although it’s the most well-known blockchain-based cryptocurrency right now, there’s a wide variety of blockchain-based services on the market. "Bancor is a decentralized cryptocurrency exchange that allows for intermediary-free transactions to occur and they are processing over $10 million worth of trades daily,” says Jeremy Epstein, the CEO of Never Stop Marketing. Jeremy is considered by many to be the world's leading authority on the intersection of blockchains and marketing. He serves as an advisor to blue chip Crypto projects like Zcash and OpenBazaar.
Why You Would Adopt Blockchain
One of the clearest and most relevant reasons that many companies are embracing blockchain technology is efficiency. We can all understand how exchanges can become quicker and simpler when they don’t have to go through a third party. It’s also beginning to move document authentication toward obsolescence, removing a step in the transnational process.
Blockchain can also make companies justifiably feel like their information is safer and more secure. In an age where hacking is relatively common and banks can not always fend off attempts to invade people’s financial privacy, blockchain is a way to feel a greater sense of control over your transactions.
Overall, major companies are adopting blockchain technology because they don’t want to miss out on what could become (and already is becoming) extremely popular. They would rather risk wasting a bit of money than risk falling behind on a revolutionary innovation. “In the mid-to-late 2000’s, big companies missed the social media train,” marketing and business strategist Clay Hebert said. “They couldn’t see how Twitter or Facebook would immediately impact their business, so they were slow to adopt these technologies. They don’t want to play catch-up again.”
How Top Companies Are Using Blockchain
On the most basic level, some companies are using blockchain and cryptocurrencies to simply offer another option for transactions. For instance, parts of the real estate market have started to embrace Bitcoin as a payment option, especially for foreign buyers or those who desire a higher level of privacy. It’s worth evaluating whether opening this option makes sense for your business.
If your company happens to rely heavily on having a secure supply chain, blockchain technology might turn out to be an inevitability for you in the future. It can offer more privacy than traditional banks while still being a collaborative endeavor. In fact, IBM is currently working with companies such as Nestlé, Walmart, and Costco on a blockchain collaboration to improve global food supply chain safety. This could provide the key to securely tracking the food supply from farm to table (or at least farm to store).
Even if you’re unsure whether or not blockchain technology will be a fixture of your business, it’s worth investing in the skills to work with it in the case that it becomes key to your field. For instance, Deloitte and other consulting firms are investing in blockchain practice areas and pursuing valuable blockchain alliances.
It’s Your Turn
Some tech experts regard blockchain technology as the next social media in terms of its long-term importance. It’s essential to learn about whether it could become a fixture in your field, and if so, how.
What uses of blockchain technology do you foresee for your business or sector?
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