Blockchain, one of the most popular technologies of the 21st century, is slowly replacing traditional cloud practices across many businesses. According to Statista reports from 2020, banking is a leading sector that adopted blockchain technology with approximately 30 percent of the entire blockchain market share. In the second position, process manufacturing accounted for 11.4% of the entire market share.
Blockchain is an evolving technology. Its use cases have expanded across multiple industries under three main stages of the evolution of the technology. Blockchain 1.0 empowered cryptocurrencies, digital payments, and currency transfers. Blockchain 2.0 focused on stocks, mortgages, bonds, and smart contracts among others. Lastly, Blockchain 3.0 is fueling processes across multiple sectors such as government, science, AI, and IoT.
Moving forward, in this blog, we are discussing how top blockchain companies are using the technology to empower digital transformation strategies. So, stay with us for some well-researched insights that can help you in knowing blockchain’s benefits better.
- Making data more transparent
Well, the basic and most loved feature of blockchain is its ability to offer transparency. Every single activity done on the blockchain servers is recorded with a timestamp, user stamp, device data, etc to ensure that any modifications in the data can be easily traced. This ability helps businesses in locating sources of data breaches easily.
- Blocking data stored against any modifications
One of the major keys to digital transformation is the massive amount of data stored on servers. Now, blockchain technology comes with an immutability feature to protect any stored data from any kind of modifications or deletion. To change the behavior of overall processes, new entries or data will have to be added and that makes everything done on servers using blockchain permanently.
- Offering the best performance in terms of speed and scalability
Blockchain is one of the fastest performing data storage technologies existing today. The performance of this technology is measured in the time it takes to process transactions. However, its performance is also based on several other factors such as the number of nodes, network latency, type of blockchain consensus, etc.
- Enabling smart contracts
Smart contracts help in automating processes such as transaction settlements, insurance settlements, payments, etc. Banks are able to eliminate third parties from processes with the help of smart contracts to ensure that the cost and time invested in the entire process can be reduced. Smart contracts also reduce the possibility of data breaches due to the elimination of third parties.
- Easy cybersecurity deployment
Blockchain is fast and thus, it can also support faster response times. This feature is heavily leveraged by cybersecurity experts who deploy automated cybersecurity solutions on always-active blockchain servers. These solutions keep every connected hardware and software in check to detect cyberattacks, fraudulent activities, attempts to breach the data, etc. Many of these cybersecurity solutions are also using AI as a companion technology to serve their purpose in a smarter and more efficient way.
- Improving supply chain management
Organizations like Walmart and IBM support the idea of blockchain in supply chain management solutions and are consumers of the same. Blockchain in the supply chain covers the process starting with manufacturing to delivery and even shipment. The goal is to leverage blockchain’s transparency and immutability features to fasten business processes. For example, blockchain can be used to deploy smart contracts for automated shipment approvals at stages where they are required. Moreover, in cases such as delivery delays, blockchain records that can not be erased can show the reason behind the delay.
- Customer data protection
Many cyberattacks are done to steal consumer data from businesses. This data can be payment details, KYC information of users, and more. Blockchain can play a crucial role in protecting such sensitive data. Plenty of banking apps, healthcare apps, and other such services have already adopted blockchain technology to provide their customers with a secured platform where customers can upload and monitor their data with security and ease of use.
- Easy backups and restoring data
Blockchain can help in creating long-lasting backups on servers with enhanced security so organizations can always retrieve their data. In case of cyber attacks to erase or corrupt the data stored on servers, these backups can be used to recover the data later. Also, the blockchain’s speed can allow backing up multiple types of data in parallel without sacrificing the backup speed. This ensures that all of the data is protected in real-time.
- A long-term stability
Blockchain evolves continuously but still remains one of the crucial technologies that are suitable for the world for a long time. Its features are capable of keeping top growing companies competitive even after ten years of its adoption by the organization. The technology is also capable of enabling smoother transitions of the data into advanced blockchain versions in the future.
- Scalability and expansion
Blockchain, as mentioned earlier as well, can handle a good amount of parallel processes without slowing down. The technology can also support more traffic and data processing compared to traditional cloud servers. Thus, targeting a huge amount of customers by connecting them through one decentralized server, blockchain technology can easily support that.
Wrapping up
Well, blockchain has many advantages that make digital transformation much smoother and easier for businesses. The technology also allows businesses to remain competitive for plenty of years to come. These examples that we discussed above are being leveraged by organizations already and as new innovations of blockchain technology emerge, the technology will grow much further in the future. For now, we hope that you liked our take on blockchain technology’s aid to digital transformation. We will return with more informative blogs, so stay tuned!
