What Are The Benefits Of Blockchain?

What Are The Benefits Of Blockchain
Ledger Nano X - The secure hardware wallet

The Benefits Of Blockchain

Blockchain is so promising that, 80crypto says that it will result in an increase in the business value of $176 billion by 2025 and $ 3.1 trillion by 2030. But blockchain is also a complex technology and many companies feel they are failing to release its full potential due to the complexity of the networks and data models, the difficulty of getting partners to adopt the technology, and the lack of skills often required by staff.

So how can blockchain live up to all that promise? What is blockchain, to begin with, and how should companies differentiate reality from hype? For many, blockchain is a complex topic of conversation and not directly the simplest concept to understand.

To help answer this question, let’s take the example of 80Crypto, which – like many older corporate networks – stores its data in multiple locations and formats. It is also very important for the company that the integrity of the transactions with its external partners can be easily validated.

Future Expectations

Ledger Nano X - The secure hardware wallet

” 72% of customers (both consumers and buyers) believe that blockchain technology will transform the expectations they have for companies within the next five years.”

Since the company’s databases are in silos, information manager Mithu found problems with the reliability and accuracy of the data as there were obsolete or duplicate registers, lost data, and administrative errors. These inefficiencies create costs through fees and delays. 

The situation also leads to friction for work teams in the company due to unnecessary and cumbersome paperwork. But at the same time, it has been a long and tough process to combine 80crypto’s data with the registers that the company’s external partners have. Mithu is worried that the situation also opens up fraud and criminality.

Transformation on Blockchain

To address these problems, Mithu decided to move the company to a blockchain-based database or shared logger. This combines all relevant data from the company’s parallel systems and databases, together with the company’s partner data. 

An integrated, interoperable source of truth is now available to all stakeholders (including external partners). The difference is remarkable – now all stakeholders in the business can have instant access to all the data and all the information that is relevant to a particular business process.

Other benefits that Mithu and his colleagues can see are:

More robust security

Because data is secured with state-of-the-art methods such as encryption keys, blockchain networks are more resistant to data tampering and cyber attacks.

Faster, cheaper transactions 

Blockchain databases do not need the usual third parties such as banks and lawyers to authenticate transactions – technology stands for that. By eliminating the need for intermediaries, companies can streamline their processes and reduce costs.

Greater transparency and traceability 

Since each network member in a blockchain database has access to the entire database of transactions and their history, they can in real-time, at the transaction level, ensure that everything is as it should be. Such systems can also be much easier to review.

An integrated, interoperable source is of truth available to all stakeholders (including external partners). The difference is remarkable – now all stakeholders in the business can have instant access to all data and all information relevant to a particular business process.  

Blockchain for a grant search

Blockchain technology – in the form of  ICOs (Initial Coin Offering)  – can facilitate the application for grants for companies as an alternative to the traditional methods of loan financing and capital financing offered by banks, venture capital funds, and private equity firms.

Here, digital tokens (or tokens) created in a blockchain network are used as an alternative way of naming value – and replace money, for example.

Since such tokens can be used to represent all possible concrete assets, they can be applied to many different types of business processes. In the real estate industry, an innovative way of using is to track and save tokenized parts of a property. Here, the tokens enable “co-ownership”, or that a property owner divides his property and sells shares. In the case of ICOs, a company sells a predetermined number of tokens to the public. Some startups have raised significant sums by creating and then selling their own digital tokens – technology companies that EOS raised in 2017, for example, raised $  4.2 billion.

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