Blockchain is the new “buzzword” when people talk about digital business processes for companies, even though it is a technology that is still in its early stage and not many people know what it can be used for.
There are many different uses for Blockchain, but the most well-known is the virtual money Bitcoin.
What is Blockchain?
When you send and receive certain types of information over the Internet, you can use a system called blockchain to keep track of how it goes. If you write a piece of code on the internet, it can connect other pieces of information together like blocks of data that form a current.
It is this system that makes it possible for people to use so-called “cryptocurrencies,” or digital currencies, to buy and sell things.
How Blockchain Is Different
The Blockchain is a set of technologies that make it possible to keep a record of information that is shared, decentralized, synchronized, and very safe. Because it can uniquely identify people and devices, it could be used as a public registry for digital operations. This is because it can store and track that identification at all times. As with other technologies, people are going to use it even if they do not even understand how it works, like with MP3 or MP4 file types.
Who should use Blockchain
If you want to record activity on the internet that can be proven, and transparent, Blockchain is a great tool. It doesn’t need a third party to check that the action is real. It also lets them add to the system with the same level of reliability. Every payment, every contract, and every job would have a good record if it were like this.
People in the financial sector have been more interested in Blockchain because of the rise of cryptocurrencies, but also because it can be easier to keep track of things without the help of people like accountants.
There are many more ways for the company to be used. It would be easier for a company to get money and loans from banks because the Blockchain would show that it has a history of paying its debts.
Companies will be able to save time and money if they have an automated validation system. It will be able to do things like buy materials, pay employees, send invoices, order materials, and more.
It would be easier for people who work with people to do their jobs if they had a resume that had been checked by Blockchain. We’ve seen this happen with some politicians recently.
In logistics, it will keep track of all the information of each part and each person in the supply chain right away, from the source to the final customer. In this way, goods could be able to get into a production center without having to go through a person. For example, if the goods meet all safety standards, the barrier would be lifted. Doubts or rumors about things like child labor, labor abuse, and natural enclaves being taken at the source would be avoided. Companies would be much less likely to be hurt by these things, though.
In addition to giving the directors of the companies peace of mind, a good Blockchain tool will keep track of bad practices and their authors, as well as the directors’ efforts to avoid them. This is because the criminal culpability of legal entities was established in our law, entrepreneurs are responsible for the punishable actions of their employees.
Another interesting use case of blockchain is NFT which stands for Non-fungible token. I have written an article about it. Go, have a read.