Blockchain
is a new kid in the universe of technology, and this has made the environment
even worse. The drastic increase in Bitcoin in the last quarter of 2018 made cryptocurrency a household name, but the
blockchain's ability to adapt to many use cases made it a favorite of security
companies.
Large
businesses and financial institutions have begun to develop their own
blockchain solutions, but development costs are usually steep and the results
are not guaranteed. Small and medium enterprises (SMEs) who want to use the
blockchain but do not have the same resources as large players are likely to
depend on third-party companies that offer blockchain services. However, in the
emerging technology market where 92 percent of startups fail, how can SMEs know
which blockchain companies can be trusted?
The blockchain industry is emerging
The
Blockchain service solves a variety of problems that disrupt the financial
system and security infrastructure that are around daily business operations.
Blockchain is a versatile solution that can help secure digital assets, manage
multi-currency transactions worldwide and enable all parties to monitor the
supply chain, to name a few examples.
"Transparency,
traceability, and security are the top three solutions that blockchain can
provide to a business or service system, cryptocurrency, and ICO index.
"Blockchain technology is spreading like wildfire; unprecedented levels of
adoption to mainstream industries such as the financial services industry to
more niche markets such as games, social work, medical research, and the list
continues."
Following
are some of the problems that are being solved by developers with blockchain
solutions and platforms.
- Transactions: Transaction is
most uses in the blockchain. For B2C and B2B payments, the blockchain can
be used to send payments and record details about unchangeable ledger
transactions that can be accessed by each user. Because blockchain ledgers
are naturally decentralized, they are far more difficult to change than
traditional centralized systems. The Blockchain solution even has the
potential for almost instant transactions in various currencies throughout
the world.
- Supply chain management:
Blockchain functions as ledgers that are distributed are not limited to
financial transactions; it can also provide a transparent picture of the
supply chain for all stakeholders involved. Whether for suppliers,
processors, distributors, retailers or consumers, the blockchain can allow
360-degree views from the supply chain from raw materials to finished
products and from retail shelves to end users.
- Digital identity management:
Blockchain solutions are also used for digital identity management and
verification. The shared blockchain that contains many factors needed to
verify the user's identity can provide a safe way to authenticate users,
as well as comply with Know Your Customer regulations and anti-money
laundering, without submitting sensitive identification information to a
third party centralized database.
- Smart contract: A smart
contract is basically a set of automatic actions that have been established
to start when certain conditions are met. A common example of a smart
contract is a payment after receiving a product. Imagine a supplier
sending several product pallets to the distributor warehouse; Smart
contracts can be configured to automatically send payments after a
shipment has been recorded in the ledger. Because all parties can see the
blockchain in real time, each of them can verify that the shipment was
actually done and, later, payments are triggered and recorded on the
blockchain as well.
Find
blockchain partners
While
blockchain certainly has the potential to dramatically change the way business
is conducted throughout the world, it is difficult to know which companies are
reliable, can be trusted or adequately positioned to survive the current Wild
West period from the industry. If you are an SME that is considering partnering
with a company that offers blockchain services, you definitely want to have a
legitimate solution and strong endurance.
That
doesn't mean SMEs should avoid exploring the blockchain space if they have
identified clear needs or just want to investigate what's out there, but that
means decision makers must approach a blockchain solution with a skeptical eye.
"Many
smart people in the field of technology are happy with blockchain and are
working hard to resolve current technical constraints," said Stallman,
"but this R & D work takes time. So even though the blockchain is
currently on a global scale, we have years of the reliable technology we need
for widespread use. "
Conclusion:
Well, at
the last we conclude that we have to trust and believe in blockchain technology. The blockchain industry is
a very interesting and innovative space that has attracted many big minds and
high energy, not to mention a lot of capital. However, SMEs must realize that
the blockchain solution is mostly in their embryonic stage and that mass
adoption is still far away. There's nothing wrong with educating yourself about
what's available and what's under development, but unless you have a clear need
for a blockchain solution and stay in touch with a company that can offer you a
proof of its proven and verifiable capabilities, you might as well served by
buying your time.
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