One of the primary buzzwords of the business world over the past few years has been ‘blockchain’.
Though this technology has become increasingly popular, many are still unsure of what it has to offer. In addition, many are still attempting to figure out how they’re able to leverage this technology.
The blockchain – what is it exactly?
To put it into layman’s terms, the blockchain refers to digital information (“block”) stored in a public database (“chain”). There are several factors to take into account when one gets into the crooks of this tech. We’ll do our best to break it down in its simplest form.
There are three components which make blocks effective:
- Blocks store information about a transaction like a date, time, and dollar amount of the transaction.
- They also store information about the participating parties making a transaction.
- Each block stores a unique code or “hash”, used to distinguish them from one another.
A single block on the Bitcoin blockchain can store about 1 MB of data. This allows for thousands of transactions to occur under one roof depending on the size of the transaction.
Every block included in a chain includes certain details. These details include transaction data, as well as a timestamp and a cryptographic hash of the latest block.
What this means, in essence, is that the technology is extremely efficient, safe, and secure.
A brief history of the blockchain
To fully understand the blockchain, it is important to know its history and background. Part of the mystery of the technology is that no one is 100 percent sure where it came from.
The alias Satoshi Nakamoto was used by the person – or the group of people – who invented the blockchain in 2008.
The initial idea for the blockchain can be traced back to the early 1980s. At this time it was put forward as a theory by David Chaum, a world-renowned cryptographer, and computer scientist.
Early-stage development of the blockchain was conducted in the 1990s by Stuart Haber and W. Scott Stornetta but it was Satoshi Nakamoto who made the major breakthrough with the technology.
Those companies working within the financial services industry were among the early adopters of this technology, but a study by Gartner in 2018 found that just one percent of chief information officers had used blockchain. This showed that the tech’s usage was still relatively niche, despite its many benefits.
For most people, blockchain means Bitcoin, which earned the title of becoming the first decentralized peer-to-peer electronic cash system on its launch over a decade ago
Can blockchain help your business?
Now that you have a good understanding of what the blockchain is and how it came to be, the next step is to examine whether or not it can be useful for your company.
Although blockchain and Bitcoin are intrinsically linked for a lot of people, it does not mean adopting cryptocurrency is the only way for companies to move forward with blockchain.
The fact that blockchain is decentralized is what will make it helpful for so many companies. What this means is that it can be possible to cut out the middleman, which means it can be helpful when processing transactions for traditional financial services businesses, for example.
Things to consider before implementing blockchain technology
It is important not to just jump in feet-first with blockchain. A thorough review should be carried out to see whether or not the blockchain is actually the right choice for your business.
With that in mind, companies across various industries can see the benefits of leveraging blockchain technology. It might seem as though it is mainly aimed at companies within the financial services, e-commerce, and retail sectors; but there are no limitations to the capabilities of this technology. Harnessing blockchain technology and leveraging it to improve your business in some form or fashion boils down to identifying a use case that makes sense for your given circumstance.
Whether your business is in the media, agriculture, transportation, or property – the chances are that blockchain can revolutionize the way that you conduct business.
We understand that this is all new information, and identifying a use case can be a daunting task. This is why we have spent a tremendous amount of time and money gathering a well rounded and detailed understanding of this technology.
We’ve built out a software that allows companies of various sizes, specialties, and within virtually any industry to take advantage of this technology with minimal overhead, time, and expertise; granting those companies the freedom to focus on what matters to them the most (generating revenue) without being left behind.
Five major benefits of using blockchain
Here are some of the main benefits your business could see by harnessing the power of blockchain:
This is by no means at all a complete list, but it offers a very quick overview of what blockchain can help your company achieve if you choose to adopt its usage.
COVID-19 and its impact
Businesses have faced unparalleled challenges this year as a result of COVID-19.
Thousands of companies had to close their doors and try to begin operating online in extremely difficult circumstances, with many of them sadly going to the wall as a result.
Others found a way to survive by shifting their operations online. This is a major shift for any business to go through, but it has been especially tough at a time of major crisis.
Using the blockchain has helped firms to manage that transition, however, and it might have put them in a better spot for the future. With so much uncertainty over how the global economy will be affected by COVID-19 in the long run, blockchain usage now makes a lot of sense.
Any firms needing to make cross-border payments will find that using this tech can speed up a process that is often slow and unwieldy, with delays potentially causing cash flow issues.
What is for certain is that this technology is not going away any time soon. So while the previous hype surrounding its arrival has dipped, the coming decade could belong to the blockchain.
Levolution marries the latest blockchain technology with a groundbreaking token offering platform. Its basis is to aid blockchain startups in breaking through barriers to entry. Relying on social incubation and the team’s core internal competencies, the Levolution platform aims to help companies attack these barriers. This is done by sourcing innovative strategies from community members and token offering participants.