“In order to not be left behind, you need to innovate.” It may sound like a cliché, right, but this is one of those corporate mantras that actually make sense since disruptive technologies can boost productivity and position your business ahead of the competition.
Blockchain is one of those technologies. Although it is well known for enabling cryptocurrency transactions, it is much more than that. From safely storing medical records to collecting evidence against fake news and improving the logistics of elections, it contributes to ensuring authenticity and security for various processes. With that, the fact that its use is becoming widespread in the market is not surprising at all!
In this post, then, you will understand better what blockchain is and how it can transform your business, so make sure to check it out!
To put in simple terms, the blockchain is a distributed and decentralized database, which can store several types of files in a linear and immutable way. In it, the information is stored in “blocks”, with each block being connected to the previous one by means of a code called hash, thus forming a chain.
Each time a new block is added to the chain, the computers connected to this network (called “nodes”) verify that the data contained in it match those from the previous block – thus ensuring that they are not modified. Therefore, when it is necessary for information to be transmitted safely, blockchain technology can be used.
How can it transform your business?
OK, but in practice, how can this technology be applied now? Which solutions already exist for companies? As we shall see below, the main ones are related to increasing transparency and ensuring information security.
Keeping your business’ private data in a decentralized way
In addition to the hash, which functions as a digital “fingerprint” of each block, the security of the blockchain also comes from its decentralization. Centralized databases, in which data is stored on a single server, are a honeypot for hackers – as evidenced by the various recent scandals of leaks and misuse of private information, such as Facebook’s case with Cambridge Analytica.
Because the blockchain is decentralized, this vulnerability ceases to exist, as hackers would have to attack all nodes in the network in order to gain access to the information registered in it.
Tracking the provenance of products and materials
Because the information recorded in the system is immutable and stored linearly, the blockchain becomes an excellent option for us to track products on supply chains. From the tracking of medicine to ensure that there was no counterfeiting to one of diamonds, to make sure they did not come from conflict zones, as well as certifying the origin of organic products, several companies and startups have been testing this technology to give more transparency to their production.
Signing digital contracts
With contracts signed via blockchain-based digital IDs, it is possible for a company to avoid a whole series of potential headaches that now exist with the electronic signature system.
With the creation of digital identities verified in the blockchain, one can be sure that the person signing that contract is, in fact, who he claims to be (which currently is almost impossible to prove and leads to legal disputes, in which one of the parties contests the validity of the signature). It becomes, then, with the help of technology, much more difficult to plead vices of consent to invalidate contracts. In addition, contracts cannot be changed after being stored in the blockchain, so in case of dispute, there will always be a single reference version agreed by all parties.
In countries like Brazil, for example, this signature has the same legal validity as the signature made on paper, and it can even be notarized, through OriginalMy’s partnership with the Azevêdo Bastos notary, without the parties having to leave their houses! Time to say goodbye to the many hours lost in traffic to go to notary offices on the other side of town!
As you can see, blockchain technology has tremendous potential to improve your company’s business by making internal processes more transparent and reducing costs!
Now that you know how blockchain works, what its main uses are for companies and why this technology enables them to gain productivity and security. In any process that requires secure transmission, authentication or storage of data, blockchain is welcome. For it to be behind most of a company’s processes, it’s only a matter of time!
So, did you enjoy learning more about this disruptive technology? So share this article with your friends and spread the word on the potential it has to improve your business!