WHAT IS BLOCKCHAIN AND HOW CAN IT HELP MY BUSINESS?

2017-06-05

Business Strategy

What is Blockchain? 

Blockchain uses cryptography to create a decentralised online system or “ledger” where individuals known as “nodes” can transact.

The system is “distributed” so no single individual has the ability to make a change without it informing all others on the “ledger”. This is commonly referred to as ‘distributed ledger technology’.

Is blockchain right for my business?

Early investors driving blockchain adoption outside crypto-currencies are predominantly those operating in banking and financial services however more and more industries are joining them with new pilots and use cases from the energy sector, retail, supply-chain, construction and more industries from both the public sector and private sector are joining them with new pilots and use cases. These include organisations from the energy sector, retail, supply-chain, entertainment, land registry, real estate, construction and more.

  • Does your business that operates in a regulated sector that requires you to know the identity of your business network?
  • Does your business share and record information with multiple stakeholders, intermediaries or business entities?
  • Does your business carry out frequent or complex transactions with multiple stakeholders that can take days or weeks to resolve?
  • Does your business have regular exchanges with other businesses that would benefit from being automated and pre-programmed?

Why do we need blockchain?

Put simply, blockchain allows us to trust strangers because the “ledger” cannot be edited or changed without all those on the chain knowing. Because of this blockchain technology means you can buy, sell, and transact with a stranger and know that there is reduced risk.

We have been able to do this previously through trusted middlemen such as lawyers, banks or governments, who can verify ownership is legal and the money is available to make the purchase. But with blockchain, there is no need for these trusted middle-men which is why blockchain business models could revolutionise transactions and business operations.

Blockchain for business: what are the benefits?

Much like the buying and selling of houses, the removal of middle-men has a wealth of benefit to businesses across the globe by removing reliance on middle-men and third parties through the use of smart contracts which utilise blockchain technology.

As well as the additional cost these middle-men cause there is also the length of time and the risk of human error, corruption and the security of these transactions to consider. Some potential benefits of enterprise blockchain include:

  • Faster transactions with greater trust, accountability and transparency
  • Reducing the reliance on intermediaries and third parties
  • Protecting intellectual property and copyrights
  • Automation of previously human tasks meaning less risk, lower costs and increased accuracy
  • The ability to share data confidentially through increased security and improved identity management

To find out more about how blockchain could change the way your business operates, why not join us at Europe’s leading blockchain event on 20th September 2017 at The Brewery, London? Find out more here

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