In this rapidly changing world a large number of businesses have been eagerly engaging in digital transformation to streamline their arduous processes and boost ROI. New trends and cutting-edge technologies have hit the business world from literally all sides and have helped them push on to the next level. It is of paramount importance for management teams to be quick on the uptake to recognize the innovation capacity that digital technology has in stock for their organizations.
It comes as no surprise at all that blockchain is one of those triggers and leading technologies for digital transformation. Not so long ago blockchain used to be associated with Bitcoin only. However, the times have changed and the ingenious technology has been progressing by leaps and bounds. It has not only lived up to the expectations of those who believed in its power and potential from the very beginning but it has also managed to make such crucial breakthroughs that even those who used to question its capabilities have been left stunned.
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Despite the fact that the decentralized ledger technology (DLT) is still in its infancy, experts claim that in the coming years it will produce a substantial impact on all businesses worldwide, regardless of their industry specifics. So, for example, we have already witnessed digital transformation in retail, supply chain, healthcare, manufacturing, eCommerce, real estate, and many other industries. It’s pretty clear that blockchain will make its presence felt everywhere and we are yet to see even more elaborate enterprise blockchain solutions. But how exactly is blockchain being used and what is it capable of now? Let’s find out together!
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Blockchain in digital transactions
Blockchain is represented as a virtual database stored in a network where all users can have a local copy of that database. Thanks to this decentralized architecture combined with some cryptographic techniques, the information stored in the blockchain database can be managed by the user only. As well as this, each and every transaction is generally sent as a cryptographically-protected block and is always verified via a special proof-of-work method. As a result, blockchain technology manages to build up a high level of trust in all peer-to-peer (P2P) transactions without resorting to any middlemen to help monitor the transaction process. Considering the fact business involved in the B2B and B2C sectors are gradually moving their services to a digital market, blockchain runs the chance of becoming the key technology of digital transformation as it offers top security and trust for consumers, clients, trade and business partners within the world of unique cross-border digital networks.
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Blockchain in business processes optimization
It goes without saying that fast speed is one of the most important factors in digital transformation, and blockchain, for its part, is famous for demonstrating great speeds when carrying out transactions. What is more, all processes related to keeping and transferring data in a blockchain are generally highly secure. Consequently, fully automated transactions can be adopted in a number of areas and make them more productive.
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Blockchain for better connectivity
Considering the importance of digital transformation, a lot of companies globally have switched to rebuilding their communication strategies and techniques. So, for instance, the Internet of Things (IoT) is capable of connecting different devices, whereas cloud-based services allow for seamless access to data and applications. These innovations and developments provide companies with a wide range of opportunities to rebuild their production and work processes. At the same time, these constantly increasing levels of connectivity present some challenges to companies when it comes to dealing with the data. However, the advanced blockchain platforms which heavily rely on the proof-of-stake validation are capable of safely and reliably handling huge amounts of data that is being generated.
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Smart contracts powered by blockchain
As of today, smart contracts are used in multiple business processes. They can not only securely store information in a blockchain but also automatically alter the data in a highly trustworthy way. Smart contracts powered by blockchain can be deployed based on the pre-defined agreements; they are generally tamper-proof, highly efficient, and most importantly transparent. They look very promising and are bound to prompt the digitalization of business processes further.
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Blockchain for long-term prosperity
A large number of businesses globally may be afraid of blockchain or probably think that only high-tech businesses need to apply it. Still, it’s worth noting that in the future some or probably a majority of large companies will demand their contractors to start using blockchain too in order to achieve higher results, better productivity, and more efficient management. That is exactly why now is the most suitable time to direct your attention to blockchain and put your business on the DLT-rails.
By and large, blockchain technology is part and parcel of digital transformation. It has a wealth of advantages to offer to both small and large enterprises. If you have any questions regarding blockchain implementation in your organization, it’s advisable to address them to knowledgeable blockchain consultants who will help you better understand how the technology functions and how exactly your business will benefit from its adoption.
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