Five Ways Blockchain Technology Will Change the Way We Do Business
Blockchain is a revolutionary technology. From providing enhanced security to improved performance, this virtual data storage system has given technological developments a boost unlike any other. Modern businesses are doing their best to not only survive but thrive in the competition that exists today. And, from the healthcare sector to finance, you will see that blockchain technology is helping these businesses in achieving their goals and better efficiency.
Moving further, in this blog, we are throwing some light on crucial usages of the blockchain for small businesses and large businesses. We will go through some statistics and then use cases to provide you with an in-depth understanding.
So, if the discussion of blockchain for businesses is interesting for you, stay with us until the end of this blog.
Top 3 crucial blockchain business statistics
Before we proceed further and throw some light on use cases of blockchain for change in businesses, let’s have a look at a few statistics that will prove its market strength.
- In 2017, global spending on blockchain technology was $0.95 billion. But in 2021, it grew and touched an approximate threshold of $6.6 billion. However, within the next three years, we might see global spending on the blockchain system crossing $19 billion of the threshold amount (Statista)
- In 2020, the banking sector accounted for 30% of the entire usage of blockchain technology across the globe (Statista)
- Globally, in 2021, cross-border transactions and approvals used advantages of blockchain technology with the largest hold amounting up to 16% of the entire market (Statista)
How blockchain technology is impacting businesses?
Well, now that we have seen these crucial blockchain business statistics, it is clear that banking and financial services are using the technology for its security advantages. Let’s discuss some of the other ways modern businesses are utilizing the blockchain revolution.
The major reason why blockchain is important for businesses is the perks it provides to enhance cyber security protocols. On blockchain servers, data once stored can not be tampered with. To make modifications in a process, or to delete a data piece, new entries will be required. With each entry made on the blockchain system, information such as the username that made the entry, device name, timestamps, and more are added. Thus, it is also very easy to track down the source before it can harm or misuse any more of the data. Fintechs are combining blockchain with artificial intelligence to use the pair for tasks such as fraud alerts, automated approvals, etc.
2. Smart contracts
One of the crucial innovations that we can not miss talking about in this blockchain app development guide is smart contracts. The technology is used to automate settlement processes and has been adopted by industries such as real estate, insurance, and more. Now, to understand what blockchain can do if paired with smart contracts, we will explain it in simple terms.
Smart contracts are terms and conditions defined by an organization in the form of codes and algorithms. Then these algorithms are uploaded on the blockchain in management servers to support processes. Every time a process such as an insurance claim is initiated by a party, the automated system supported by an AI reviews terms defined in smart contracts and takes the action accordingly. Smart contracts can be considered as one of the top benefits of blockchain services that reduce the cost and process timing drastically.
Blockchain servers are decentralized. Thus, users can have the proper control over the data they store on these platforms. Any third-party organization can not access the data for marketing or any other purposes unless it is shared by the owner of the data by giving access permissions. This is how the blockchain is changing money and businesses, especially the crypto industry and NFTs.
4. Reduced expenses
As mentioned above, blockchain technology helps businesses in adapting automation on a large scale. Also, it reduces the requirement of approval authorities which eliminates the unnecessary fee that goes to them. Blockchain app development companies are also using blockchain for small businesses technology to reduce cyber threats and improve performance. Reducing cyberthreats help companies in avoiding expenditures that cyberattacks cause such as ransom amount, data retrieval costs, operating system reinstallations, and more.
Blockchain technology is boosting the adoption of tokenization among fintech and crypto businesses at a rapid speed. Take NFTs for instance. Tokenization allows content owners to convert their ownership proof into tokens. These tokens can be used to sell rights of the art or a piece of the art. With the help of Ethereum’s blockchain ledger, one can prove ownership of the content by using NFT tokens they own. NFT tokens are never similar in nature and are immutable evidence of ownership.
Conclusion- Blockchain is boosting businesses
Blockchain is revolutionizing traditional forms of businesses. It is helping them in becoming more efficient, faster, accessible, and secure. Also, with time, blockchain is also boosting the adoption percentage of automation in businesses all over the world.
In the end, we hope, you found this blog informative. You can check for more informative blogs from MobileAppDaily to know more about the latest trends going on in the app marketing industry.