The most effective way to build a successful startup business is, to begin with, the future in mind. Companies using blockchain are poised to come out ahead of the competition.
Companies are using blockchain to improve the way in which people conduct business. And, in the next few years, it’s likely that you will see blockchain take over the worlds finance, information sharing, voting, and so much more.
it has potential applications in everything, from businesses and companies to government institutions. Read below to find out what blockchain is.
What is a “Blockchain”?
A blockchain is a chain of blocks. Each block is a data record. Data blocks are linked together through cryptography, making a chain of data blocks. Thus, a blockchain.
Cryptocurrencies, like Bitcoin, use a public blockchain to store transaction records. Anyone can see a complete history of every Bitcoin transaction that has ever been made. The record is freely accessible through the blockchain.
Companies can use private blockchains which remain inaccessible to the public. But, at the end of the day, a blockchain is, simply, a digital ledger. It exists as a secure record of digital activity.
Are Blockchains Secure?
The key design aspect of the blockchain, which enables the technologies wide range of application, is security. A blockchain is inherently designed to be immune to change. Once a block is created it cannot be modified.
This allows a blockchain to act as the verifiable record of official transactions. A decentralized blockchain formes a naturally fault-tolerant platform.
Each block carries the record of the chain, which makes the data file extremely difficult to hack. This makes a blockchain the ideal conduit for secure digital file transactions.
How Does a Blockchain Relate to Cryptocurrency?
The blockchain is to Bitcoin, as your checking account history is to your money. Your bank handles the holding, management, and security of your financial assets.
For this service, you pay the bank a fee. You pay a fee when you send money to others, and, to hold your money. Also, the bank handles documenting and cataloging the history of all your financial transactions.
A blockchain removes the need for the bank to play the arbiter of your funds. There is no need for a central server, and you don’t double-spend.
The first blockchain was invented for Bitcoin. However, the blockchain itself, is an invention that is changing how companies operate their business.
Is Blockchain Technology Under Any Regulation?
Regulation around blockchain is related to its use with cryptocurrency for business purposes. Regulation around blockchain technology differs from country to country.
In the United States, cryptocurrencies are considered assets. Thus, they are susceptible to government purview, like any other liquid asset.
In 2015, The New York State Department of Financial Services went so far as to instill regulation that mandates a virtual currency license. This is also called a BitLicense.
Under the New York regulation, businesses are required to have a virtual currency license in to use blockchain technology. Any financial activity, using cryptocurrency on the behalf of clients or customers, is regulated.
The regulation excludes blockchain technologies used for non-financial purposes. As well, as the development of blockchain software. Personal trading and investing of cryptocurrency is left unregulated across the US.
How are Companies Using Blockchain?
Blockchain enables new and exciting digital business applications for industries of all types. Innovative millennial entrepreneurs lead the way in the development of blockchain technology. There are companies using blockchain for…
Financial Transactions
Bitcoin is the poster child of the original blockchain. It is used, still, for financial transactions. Cryptocurrency is not synonymous with money, but some, like Bitcoin and Ethereum, definitely are. There are a few big benefits of using blockchain for financial transactions.
The biggest benefit is the ability to transfer money to anyone in the world, from anywhere, instantly. And, without fees. There are no middlemen taking a cut. The cryptographic ledger technology automatically secures, transfers, and logs every transaction – permanently.
The reliability and efficiency of transactions made over blockchain are of benefit to employers. Blockchain allows you to send money to clients, contractors, or employees for a fraction of cost that banks charge.
Smart Contracts
Blockchain enables the creation of smart contracts. The contract is held in escrow as a security until the delegated terms are adhered to by a specified party. At which time, the contract is upheld.
Smart contracts are self-automated and play arbiter to their own terms. This makes them accessible and inexpensive. The fees associated with entrusting contracts to a third-party can be prohibitive.
Blockchain smart contracts are unbreakable. And applications are fast in development for the IoT (internet of things) sector. Even the financial sector has started using smart contracts for the improvement of loan markets.
Notary and Proof-of-Property
The security of blockchain technology enables reliable and verifiable notarization of digital files. Any multimedia file can be notarized upon creation, through the blockchain app Uproov.
Blockchain can also be used as proof-of-property. Any digital file can be notarized for proof of ownership with apps like Stampd.io. This makes the possibility of obtaining an intellectual patent much more accessible.
Democratization and Voting
Blockchain technology offers possible applications in the very foundation of Government. The accessibility, affordability, and security of blockchain enables greater participation in democratic processes. Governments and blockchain are a match made in heaven.
Be it shareholders or constituents, blockchain is a better way to vote. It provides the framework for elections and votes to take place in an unbiased, accurate, and secure fashion. Imagine an election system where no one had to mess with paper ballots, or “chad”.
Final Thoughts
The application possibilities of blockchain are vast and profound. Companies using blockchain have the opportunity to carve out a foundational stake in the emerging blockchain revolution. The best way to improve is to progress.
If you enjoyed reading about companies using blockchain, share this article with your friends and family on social media. Thanks for reading!
