Blockchain technology is arguably the biggest development inside and outside the business world since the internet changed the game. Those businesses that are embracing blockchain technology early are gearing themselves up for success.
However, many businesses have kept blockchain at an arm’s length, waiting for it to become more mainstream or waiting for the thing it is most associated with, cryptocurrency, to become regulated. If you’re an entrepreneur or a business owner, you need to evolve with the times and that means you need to know more about blockchain technology.
What is Blockchain Technology?
Despite what some people believe, blockchains are not cryptocurrency. Blockchain technology emerged through Bitcoin as this digital currency runs from this technology – but they are not the same. Although blockchains are used to help send crypto payments around the world, they have other uses which will be explained later.
Blockchain technology allows everyone to verify actions and make them public. It can be explained just like a chain of blocks where each block represents a piece of data. Once the block is added to the chain, it remains there for eternity and cannot be altered or removed. This is secure because of the powerful code working in the background.
Blockchains Are Decentralised
Each new block or piece of data added to the chain is verified by a computer in less than a second. The blockchain is so efficient because it does not rely on a centralised authority. If you compared crypto’s use of the blockchain with a regular fiat currency, the payment you make at a store with crypto is accepted directly but a payment made with a bank card needs to be checked and authorised by VISA or Mastercard. These companies also take a cut, making it more expensive to shop with fiat currencies.
What Do Blockchains Get Used for in Business?
Outside of cryptocurrency, blockchain is helping people buy chicken at KFC in Canada or pay for holidays on Bitcoin travel sites; it has many other business uses. The number of businesses using blockchain to their advantage is almost countless but some examples that could be replicated by others stand out.
Some car firms are using blockchain technology to record all incidents, repairs and maintenance reports of their vehicles. This is excellent for fighting crime and fraud when those cars are sold on. No longer can criminals forge the mileage of a car or lie about its history. All its records are stored publicly on the blockchain.
In the music industry, the blockchain is being prepared to fight arguments over ownership by assigning music to artists, writers, drummers and everyone involved in the production of a song. This will prevent court cases and arguments over intellectual property too.
How Can Your Business Use Blockchain?
Even if you just want to start accepting Bitcoin from customers and open up the market, the blockchain has many uses to many businesses. Entrepreneurs should consider their options early and beat the race with competitors.
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