Blockchain is the future of digital transactions. But even then many of us don’t know what exactly this blockchain technology is. Why is it so useful for businesses?
What is blockchains?
In simple terms, blockchain is a series of records of data that are unchangeable. These records are time-stamped.
All these records are managed by several computers, and not by just one. We connect each block of data with the help of a chain. These multiple chains of networks are what keeps the blockchain credible and trustworthy.
But, why is it so important for businesses? This blockchain network is an example of a democratized system. It doesn’t possess any single authority for looking after it.
Therefore, in today’s world, many companies are looking after this technology for solving their financial issues. Because of financial issues, this technology can cut down costs and increase efficiency.
In the blockchain info, tokens represent assets like cash, raw material, finished goods, etc. Today, most blockchain info applications are common in finance industries.
What is the future of Blockchain in India?
Only one in every 400 software developers can work on blockchain in India, which could potentially be the backbone of many major financial transactions in the country, according to the NASSCOM Blockchain report. The demand for individuals with Blockchain skills is therefore strong.
Benefits of Blockchain:
Because of its digital signature and encryption, Blockchain is regarded as a highly protected framework. The device is designed specifically to be safe, easy, and tamper-proof.
A system based on data stored in a number of locations is immune to hackers; access to it is not that easy and, if so, any piece of information can be easily recovered.
Banks, as well as customers, are instantly aware of the completion of the transaction, which is both convenient and secure.
No concealed fees
Forget about fees and commissions; there is no need to pay intermediaries as the system is decentralized.
Users have to choose between anybody’s public blockchain networks and those needing authorization, where each node should be permitted to join the user first.
Developing a business case
For the successful blockchain implementation for any business, it is important to know the workings of the blockchain as well. Also, it’s important to know whether it can solve the problem.
Hence, you need to know the entire process inside out. Therefore, there are some criteria an organization can look into to ensure if it is suitable.
- Do multiple parties share that data?
- Can multiple parties update that data?
- Is verification mandatory?
- Is the interchange time-sensitive?
- Do agreements interact?
If your answer is yes, then this technology is suitable for you.
1. Choose your blockchain carefully
Yes, you need to have a proper choice based on your purpose. Because there are several of them available today. So, choose one that is the most suitable for you. Each one has its benefit.
Every blockchain has a different chain, and each chain performs a unique function.
There are different types of blockchain. Some popular ones are private or public, centralized or decentralized, and permission-less or with permission.
For example, for security and financial regulations, a permissionless, decentralized blockchain is not sufficient. So, to ensure that you pick the most suitable one, talk to an expert.
2. Build an ecosystem
A team is always better than an individual. The same holds true with blockchain. It works better if you involve multiple stakeholders.
Hence, it is important to create a huge community within or outside the organization. Doing so increases trust among companies.
3. Design purposely
With blockchain, one needs to ensure two things.
First, whether it can solve the problem.
Second, it easily fits in the existing processes.
Because if it’s not so, the processes will need to be revised.
So, these are the 3 golden rules for building a successful strategy for a blockchain project in 2020. It will change transactions taking place around the world. So, it’s the right time to get into this.