Transaction, contracts, as well as their records are just a few of the essential structures in today’s political, economic and legal systems. They work at protecting assets and setting organizational boundaries. In addition, they also work at establishing and verifying identities and recording events. They are also working at governing interactions among communities, nations, organizations, and individual entities, while at the same time guiding social and managerial action. Those mentioned critical tools though along with the bureaucracies designed to manage and supervise them have unfortunately failed to keep up with our economy’s digital revolution. In this new digital world, there need to be some changed in regulating and maintaining administrative control.
Blockchain is around to solve this issue. It is a technology in the middle of virtual currencies like Bitcoin. Thus, it is a distributed, open ledger created to record transactions effectively between parties and in permanent and verifiable manner. The ledger is programmable so that it can automatically trigger transactions.
How Blockchain Technology Works
With the use of this new blockchain technology, it would be easy to see a world wherein contracts are fixed in digital codes and then effectively stored in shared, transparent databases, with sufficient protection from potential tampering, revision and deletion. This would be a world where every single agreement, process, task, and payment would be digitally recorded and signed for easy validation, identification, storage and sharing.
Such a technology would be ideal as eCommerce solutions because of its capacity to provide effective protection of all important details pertaining to transactions and contracts. The downside of having blockchain around is that there may be no need for intermediaries like bankers, lawyers and brokers. But, that also means more efficient business transactions. Individuals, entities, organizations, algorithms and machines would be able to transact freely and interact easier with each other and there will be little friction. Such benefit proves blockchain’s immense potential.
Blockchain technology, undoubtedly, is here to provide revolutionized businesses and redefined economies and companies. The important thing to keep in mind here is the possibility of barriers – governance, societal, organizational and technological – to fall. Therefore, it is really essential to understand how blockchain innovation will take hold without rushing headlong into it.
The criteria in selecting the best blockchain platforms include, popularity, activity, network type, pricing, GitHub repo and supported languages. Some of the most recommended Blockchain platforms include:
- Ethereum – It is quite popular and active in GitHub and its supported languages are C++, Go and Python.
- Chain – It a platform well-fitted for financial industry. Its supported languages are Ruby, Java and Node.JS.
Blockchain Technology in Trade Industry
Before jumping right into blockchain investment and strategy, it would be a good idea to start reflecting first on what is currently known regarding this technology adoption. Particularly, the transformation method characteristic of other introductory technologies.
Currently, companies already are making use of blockchain in tracking items through multifaceted supply chains. This new architecture was introduced in 2008 and it was created as part of Bitcoin proposal. Bitcoin, as known to many, is a virtual currency eschewing central authority to issue currency, transfer ownership and confirm transactions. Basically, Bitcoin is accepted as blockchain technology’s first application.
Consider how the businesses work now. One of the core function of a business is to keep transaction records. These records track previous performance and actions and they guide in making business plans for a more fruitful future. These records provide views of how organizations work internally, as well as views on outside organizational relationships.
Every organization works at keeping their own records, as well as in keeping them private. There are some organizations without master ledgers of activities. Rather, they have records distributed across their internal functions and units. The issue here is, unification of the transactions across private and individual ledgers takes time (a lot of it) and is susceptible to error.
Like for instance, a typical transaction in stocks is executable within microseconds, and in most cases, there is no need for human intervention. The settlement, however – meaning the stock’s ownership transfer – can still take a while (like a week). The reason for that is because the involved parties do not have access to the ledgers (each other’s) and thus they cannot automatically make verifications regarding the assets – whether the assets are in truly owned and therefore can be really transferred. This is where intermediaries come in. Their role is to be guarantors of the said assets – verifying that ledgers are updated individually and the transaction record traverse organizations.
In blockchain system, replication of ledger occurs, and this happens in several identical databases. Each database is maintained and hosted by interested entity/party. Whenever a change is entered in a copy, the rest of the copies get updated simultaneously. That way, whenever a transaction happens, record of assets and values exchanged between parties are entered permanently in the ledgers. This means that there is no long any need for intermediaries for verification or transfer of ownership. In case that a transaction of stock has taken place on blockchain system, the whole deal would have been settled verifiably, securely and within a few seconds.
Safety of Blockchain Technology in eCommerce
One important thing to take note of is that blockchain as a system for eCommerce development is safe. There have been reports of hacking in bitcoin exchanges, exposing weaknesses, but such misfortunes have been caused by separate systems that have been linked to the parties that are implementing blockchain technology.
The area of eCommerce is always the field with tensed relationship with online safety or cybersecurity. Websites involved in online trading have experienced – and still experiencing immediate and catastrophic threats. Business in eCommerce require customer information that are highly sensitive and confidential – contact details, addresses and payment information. Efforts have been exerted in order to secure these information, but security is still a reactive game for these businesses.
With the implementation of blockchain technology, a more secure alternative is in existence. This technology offers the option that can effectively improve that supports most cryptocurrencies, offers the industry an alternative that can improve the state of affairs on two separate fronts. First is regarding centralization wherein blockchain resolves the issue by the way it was simply built. Second front is a bit more practical wherein the technology’s disintermediated and decentralized model permits to create security systems to take good advantage of the features to produce more enhanced patterns for cybersecurity.
Blockchain Technology in Healthcare
Blockchain technology is considered to have the potential of effectively transforming healthcare. It can work efficiently at placing the patients at the heart of healthcare ecosystem, as well as in providing increased privacy, interoperability and security of health data. Blockchain technology can also provide a HIE (health information exchanges) new model by making electronic health/medical records secure, disintermediated and more efficient.
A blockchain-based HIE has the ability to unlock interoperability’s true value. These systems can potentially reduce or eradicate the costs and friction of current third-party intermediaries.
The potential of blockchain as an android app development tool technology has extensive implications for the stakeholders within the entire healthcare ecosystem. Taking advantage of this technology offers the possibility of connecting disjointed systems to create insights and allow better assessment of healthcare value.
Blockchain Adoption for Safer Online Experience for Retailers
The banking, trade, insurance and logistics industries have been trying their best to ensure online security for retailers. The boom in eCommerce is undoubtedly rising, and with it the threats, as well.
That is why there is an urgent need for a more secure system that can be relied upon by everyone working, selling, dealing, transacting and buying online. Embracing blockchain technology is one way of providing a more secure space for everyone concerned. It provides cybersecurity, which companies can effectively use in keeping client information safe and confidential. In return, blockchain systems in companies give clients peace of mind knowing that they are transacting with organizations that are securely operating online.
Blockchain addresses several common issues. In logistics and transportation, it can resolve disputes, provide more efficient administrative schemes, and deliver more effective order tracking system. For instance, blockchain-based platforms allow for ease in document coordination on shared distributed records/ledgers. This means physical paperwork becomes unnecessary.
With the existence of blockchain technology in several industries, the current security issues can be easily remedied and eventually eliminated. By implement blockchain technology for data verification, an entire network can validate and contribute data, and tampering is effectively prevented.
As every eCommerce consultant would say, eCommerce is now a whole lot safer than before and that is because blockchain technology was born. There is no doubt that blockchain technology is the new gamer changer. It allows an organization to transact securely, without having to fear security hacking and without the need for intermediaries. Information and records of transactions are validated, updated and exchanged properly, efficiently and safely because the ledgers are updated automatically.
Indu is a technocrat with diverse technology background. She has strong focus towards tough customer problems using digital technologies. With more than 18 years of experience in Digital Innovation, Product development, Business strategy, Team management she writes about her experience working with customers around the globle.
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