We’re guessing you’ve heard about bitcoin and the platform it’s built on, blockchain. There’s certainly been a lot of hype about bitcoin and other cryptocurrencies over the last 12 months; some people are true believers, and others are very skeptical.
But when it comes to your business, it’s important to understand that blockchain is about much more than bitcoin.
Blockchain is a decentralized, incorruptible ledger that holds great promise for the way all businesses exchange value. The technology is hosted across a network without any central control. With blockchain, every agreement, process, task, and payment has a digital record that can be identified, validated, stored, and shared. And it does this all without the need for a third-party, like a bank, broker, or lawyer.
Here are some of the advantages of blockchain that can help your business.
Unparalleled security. As we’re all aware, cyber security is an increasingly important aspect of conducting business. As has been said many times, it’s not a matter of if your business will be hacked, it’s a matter of when. With blockchain, those fears—at least at this point—disappear. Because information is distributed and there’s no single center to be attacked, blockchain transactions appear to be hack-proof.
Always-on reliability. With the standard, present-day network, if servers go down, everything screeches to a halt. Because blockchain is decentralized it is not reliant on just one machine or one facility. So if a server somewhere in the blockchain goes down for a period of time, there’s no disruption and work can continue. Blockchain also provides for faster and more accurate transactions, which can speed the pace of business and make for a better customer experience.
The introduction of “smart contracts.” Smart contracts enable you to exchange money, property, or anything of value in a transparent and secure way. As customers demand transparency into what’s happening with their money and what’s happening with the delivery process, blockchain delivers while eliminating much of the friction that exists in customer relationships today.
So, what does this mean for your company in 2018? Should you make adoption of blockchain technology a top priority? Our bet is “not just yet”—but it is important for every executive to understand the immense potential of blockchain, and begin to formulate a plan for how best to deploy this foundational technology for your business.
Contact us at 215.441.4600 or Email if you have questions or would like to discuss how this topic may impact your business.
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