Going by the current scenario in the business world, where convergence of technological innovations are spurning new businesses, enterprises today are loosely connected diverse entities coming together to service their clients by leveraging on technological advances and virtual networks . But these business behemoths face new challenges of cybercrime and ingenious frauds inhibiting their growth. In addition governments are compelled to address the innovative business models by bringing newer compliance guidelines constantly, making the whole eco- system dynamic and volatile.
To address the above challenges, businesses have turned to technology called Blockchain – a decentralized ledger technology used by business networks to securely exchange physical or digital assets. In this business network, each member of the network is given access to an updated copy of the ledger to read, write and validate transactions which then is committed to all the ledgers in the network.
The Blockchain technology provides a secure exchange of business to business interactions between suppliers, distributors, financial institutions and regulators and these interactions are private, secure, auditable, confidential and faster.
The benefits of Blockchain are manifold; it prompts a feeling of trust between various stakeholders because of shared processes and recordkeeping without providing room for intrigue and manipulation. In addition the entire interactions happen almost spontaneously without any cost overheads and presence of a interceder.
A few of the applications as a result of Blockchain technology will be:
Smart Contracts: Coded contracts enabled by distributed ledgers will execute when specific conditions are met. Today the industry is proficient to develop smart contracts programmed to execute simple functions.
Sharing Economy: Blockchain allows for peer-to-peer payments thus paving way for truly decentralized economy, for e.g. – Users may use Blockchain based apps to hail ride–sharing services without intermediary apps like Uber.
Crowdfunding: Blockchain technology allows for peer-to–peer economy to flourish which may then lead to crowdsourcing venture capital funds with each investor having a direct say in product development.
Governance: With its distributed database technology Blockchain may make election and polls truly transparent and verifiable.
Supply Chain Auditing: Consumers can hold companies up for the ethical claims with Blockchain pushing transparency with timestamping of date and location.
Blockchain technology is expected to see few commercial viable projects in 2017, having received general acceptance for its robust foundation and strong support from the open source community.
For more on this, read: http://blockgeeks.com/guides/what-is-blockchain-technology/