Since the past few years, the world has been going bonkers over Blockchain Technology. More and more businesses have been realizing the importance of decentralization of data ledgers, resulting in an increase in the worldwide acceptance of the blockchain technology as a transparent, secure, and efficient substitute to the current technological system. In fact, Statista has projected the Blockchain market to reach a whopping USD 39.7 billion by the year 2025.
The industry has managed to survive the novel Coronavirus that has adversely impacted all the businesses, the intensity of disruption being different in different industries. The pandemic has provided the industry with new opportunities in the mid and long term.
While most of us tend to commit the mistake of associating blockchain with cryptocurrencies, it’s high time we realize that blockchain is much more than just crypto. Blockchain is in full swing to remodel businesses in various industries like education, finance, healthcare, and insurance.
In addition to being an excellent alternative to traditional currency, centralized banking, and transaction methods; blockchain is all set to change the way a day-to-day business is run in the following ways:
In the professional world, we often deal with various business agreements and contracts. Since these contracts are prepared by humans, there are high chances that they might be interpreted differently by different parties. This causes conflicts.
Smart contracts are an advanced way to seal the deal in digital formats. In simple words, smart contracts are computer programs with ‘if A then B’ logic which are executed on certain conditions. These contracts are written in such a way that they leave no room for interpretations and hence, lesser conflicts.
Smart contracts have the capacity to transform many industries in the 2020s. Examples include: Smart contracts can automate workflows and sharpen calculations ultimately increasing the efficiency of the processes in Trade Finance. They can reduce the need for lawyers or brokers by optimizing transaction speed in the Real Estate sector. More healthcare institutions are opting for smart contracts to keep patients’ data, drug formulas, and clinical trials safe from breaches.
The Blockchain based cloud storage represents 100s, 1000s, or even millions of computers and servers. The data is divided into multiple encrypted segments that are interlinked through a hashing function. Each and every user owns encryption keys and the data is encrypted. This makes the blockchain-based cloud storage unhackable and unbreakable.
The costs of storing data on a decentralized cloud storage are lower as compared to centralized cloud storage. Blockchain prevents data tampering by providing a trusted way to track the storage and backup history. By wisely combining blockchain technology with cloud storage, businesses can reduce their IT expenses, increase security and streamline the flow of information.
Raise Capital Globally
The arrival of blockchain technology is contributing to the evolution of capital raising by diversifying the ways in which businesses can raise funds. There are three types of Blockchain Based Offerings (BBOs):
- Initial Coin Offerings: ICOs are the oldest and the most popular form of BBO wherein, companies conducting an ICO sell a type of asset called utility tokens. Companies set a time window during which the investors can send in digital currency.
- Security Tokens Offerings: STOs are different from ICOs in the sense that the offer is for the purchase of a security rather than a digital product. The regulators, hence, include them under the securities law.
- Initial Exchange Offerings: IEOs are the latest form of BBOs and require a company to sell utility tokens or securities through an online digital asset exchange. This process is similar to IPOs but the only difference is that companies sell tokens instead of equity shares in an ICO.
Blockchain enables more transparency for businesses and consumers, and accurate tracking in the supply chain process. The increased transparency can help reduce fraud in case of high valued goods, also eventually eliminating the impact of counterfeit products.
Blockchain was looked at for applications in the early days of virus response, such as helping to connect medical providers with needed equipment during the COVID-19 outbreak and potentially produce reliable COVID-19 immunization passports stored on a blockchain, and even using the technology to prevent price gouging.
Blockchain is also entering the HR procedures to help in employee verification. A prospective employee’s entire resume can be configured as a blockchain with every qualification or milestone being an individual block.
The data once entered by the job applicant in the resume can not be changed or omitted. The best part is that the data (qualification, experience, etc.) shall be auto verified so there won’t be any need of manual check for each and every candidate. Blockchain also eliminates any chances of biasness towards a particular candidate by hiding the personal details.
There are plenty of ways in which Blockchain can completely transform how businesses operate, hire, raise funds, conduct voting, transact and store data. It is high time the businesses realize that the technology is no joke, and is here to stay. It will change the face of business as we know it in the coming years.
And while leveraging blockchain for your business can be a tricky business for someone with no background in this domain, you can outsource the services from various players.
We, at Admantium, help organizations raise capital through ICO’s, STO’s or private placements.
The organizations and business entering blockchain industry can stay tuned to this space for details. www.admantium.co . Empowering your current business case with blockchain implementation, let’s get started !
About the Author – ANSHULI SONI
Anshuli Soni is a Financial Analyst at Admantium Crypto Advisors, an Investment banking and consulting firm focused on blockchain technologies. We help early-stage entrepreneurs and startups in Building Business Models and Developing Business Ideas take a 360-degree view of how to build a sustainable business using blockchain technologies, translating concepts into clear cut plans. We also help raise external funding to kickstart or grow your business.