Leveraging Blockchain in Your Business
Blockchain technology is a hot topic. It is rapidly transforming the way we store and protect information, manage and trade assets, and think about all kinds of business processes.
And yet, because the nature of blockchain is so paradigmatically different from what we’ve always known, it is still a mysterious concept to most of us.
So first, what is it?
Blockchain is a method of storing data that is decentralized, accurate, secure, irreversible, and unalterable. It is a user-controlled, public database.
In contrast to conventional methods of electronic information storage, which organize data into tables in a centralized location, the key innovation of blockchain is that true to its name, it stores digital information in data groups called blocks, which are assembled into a chain.
Each block has a set capacity, and when full, it is closed and locked onto the block behind it, forming an irreversible, chronological string of information.
Also known as DLT, or distributed ledger technology, blockchain duplicates recorded information and permanently spreads it across a broad network, essentially eliminating the risk of tampering or corruption of data.
Though blockchain has many applications, it is most often employed as a type of public ledger, establishing trust between parties so that transactions can be completed without the need for a trusted third party.
As such, blockchain is best known as the revolutionary technology behind cryptocurrencies such as Bitcoin, Ethereum, and Ripple.
There are numerous advantages of blockchain technology with transformative real-world uses—it can improve operations and create new business models in a wide variety of industries.
Benefits of blockchain include:
Security: Blockchain offers end-to-end encryption and a permanent, unalterable record with built-in redundancies that prevent tampering and unauthorized activity. Because data is stored across multiple locations, should there be a breach at any one point, cross-referencing can immediately detect the anomaly. These added layers of transaction security are especially critical for financial institutions.
Privacy: Blockchain allows companies to anonymize data and limit access to information by requiring permissions—vital in industries such as healthcare.
Decentralization: In keeping with the Web 3.0 model, no single individual, group, or organization controls the data in a blockchain. This offers multiple benefits. For example, it enables companies at all points along a supply chain to share and access information without one party being responsible for facilitation. It also eliminates the risk of a single point of failure.
Trust: Closely related to the concept of decentralization, blockchain removes the need for an intermediary (such as a bank) to create trust, even between entities with no established relationship. Smart Contracts, for example, take place over blockchain and can replace traditional escrow, providing enormous advantages in real estate transactions.
Immutability: Blockchain’s unalterable timeline provides a secure and reliable information history and therefore a streamlined way to audit transactions and data.
Transparency and Traceability: This immutable chronological record helps businesses manage inventory, trace product, identify problems and handle them swiftly.
Improved Speed: By cutting out “middlemen” and replacing various manual steps, blockchain can expedite transactions.
Reduced Cost: Blockchain technology creates efficiency in diverse business processes as well as transactions. It streamlines numerous tasks for which you might previously have relied on third-party providers, including regulatory auditing and reporting, as well as aggregating and amending data. This increased autonomy results in real savings for your company.
Tokenization: Blockchain facilitates the ownership of digital rights to property through tokenization. There are two primary types of tokens, fungible and non-fungible. Both are digital representations of an asset. Fungible tokens, such as Bitcoin, represent equal, interchangeable, divisible units. (Think: one nickel equals one other nickel equals any given nickel; and any one nickel can be divided into 5 pennies). A non-fungible token (NFT), by contrast, is unique, indivisible, and not interchangeable with other NFTs. Each one has a singular construction; it represents and authenticates ownership of a specific asset on a blockchain. An NFT can represent an intangible digital asset (such as a photo) or digitally represent ownership of a physical asset (such as real estate). They can also be used to develop new forms of collectible items and create scarcity. This flexibility makes their application in business almost unlimited.
At Lukasa, we’re in the business of supercharging your business for maximum efficiency and profitability in a rapidly evolving data-driven economy. As part of a holistic reimagining of your operations through the lens of the most agile, modern technology, our team of experts can help you implement the blockchain technologies most essential to your company’s growth.
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Lukasa is a business and technology modernization firm focused on process analysis and improvement, system and data unification, cloud migration, tailor-made software and implementation—maximizing efficiency and growth.