Blockchain technology has been one of the most controversial in the past years since there are people who seem to love it, as well there are its detractors.
Nevertheless, it has proven to be a highly secure and transparent way to exchange data and to obtain information, which is the main feature.
It started as a technology made for cryptocurrencies and Bitcoins but since its creation, it has evolved and now it’s widely used in other areas that some startups are starting to apply to get a successful business.
This has caused Blockchain to becomes a standalone technology that offers solutions to many issues that requires a safe way to handle data, and also as a great complement for other latest technologies.
How does Blockchain work?
Blockchain technology has existed since 2009, and although it might seem like a highly complicated matter, it’s very simple to understand.
Its main purpose is to store digital transactions without any regulations, based on two principles:
Block: in each block, there are a group of transactions and each one of them is identified with three main pieces of information that are used to identify the transaction, the block, and the previous one.
Chain: the chain refers to the fact that each block is connected chronologically and linearly, and this is the most important feature since it ensures that not one single block can be removed from the chain, which ensures greater security.
Since it has a distributed ledger, any computer at any place in the world can validate a transaction, so it’s used globally to make several transactions without considering geographical boundaries.
Also, its main feature is that there’s no need for an intermediary to facilitate the transaction since each record is done by the parties involved. This means that transactions are safer and there’s no probability of getting robbed or being hacked.
Companies that implemented this technology
Every certain time, a new technology erupts to change everything and improve certain processes that otherwise are done in an archaic way.
One of the main advantages of Blockchain technology is that it’s compatible with any kind of digital information, which means it can be adapted to store not only Bitcoins or cryptocurrencies but any data that is required.
Emerging companies are the ones who always take advantage of new technologies, testing them and trying to implement them to offer a better service.
This is what happened with Blockchain since many entrepreneurs saw the opportunity of achieving a great process, and many have tried it in different areas, which will be the future of data handling.
One of the features of Blockchain is that it’s decentralized, which means that there isn’t an intermediary between the buyer and seller. This results in a cheaper process since there’s no transaction fee involved.
Some startups have started to implement this technology to handle payments between overseas parties, avoiding making wire transfers that will be a lot more expensive considering banking fees.
This is done by implementing payment systems that are built on a Blockchain, which offers the advantage of having each transaction recorded and without the chance of being eliminated.
The advantages of implementing this are that payments are processed faster, the transactions are more secure, and the costs are considerably low.
One of the most interesting applications of Blockchain technology is within the healthcare sector since it’s proven to be very useful to handle a huge amount of patient health information.
Many startups have arisen offering their services based on Blockchain technology, and they promise that all the data is secured safely and that there’s no chance of hacking or corruption from third parties.
The best feature that this technology has to offer in this sector is that the information is easily shareable and it could help manage the patients. This means that if one patient’s data is stored within a block, it can be shared with different physicians and institutions easily and faster.
Also, the Blockchain ensures confidentiality, since the patient will be the only one authorized to share its information with the practitioner.
The implementation of this technology in healthcare startups will mean a better service for patients since the data will be readily accessible and would prevent loss.
Blockchain technology is used amongst the legal startups to store sensitive and important information that needs to be handled carefully since they usually involve a contract or some compromising deals.
One of the applications is the “smart contract” that is used to monitor and execute legal agreements. This is helpful since it will eliminate all the paperwork and staff related to legal transactions.
Some startups are using tools that are based on Blockchain technology to create and sign legal documents, which makes everything so much easier for businesses.
What to expect in the next few years
The Blockchain adoption will continue to expand as many more startups start to use it, but first, people must delve into it to know exactly how it works and to lose the fear of using it. Once it becomes more familiar, it’ll be easier for startups to implement it.
This will cause a worldwide acceptance, which will lead to research and development of its application, and this will also help break with the misconceptions that people have about it.
If your company has the potential to implement Blockchain to optimize the process of data transfer then you should start to do it to reduce conflicts and troubles with your customers, and once this technology becomes popular, you’ll be prepared.
More startups and entrepreneurs, both in private and in the public sector, are having an interest in this type of technology, so if you want to be on-trend, make sure to not get left behind and focus on the benefits that this transparent technology can do for your company.
It’s expected enhancement in cybersecurity, a strengthening of Internet of Things (IoT) services, and an increase of jobs in this area since it’s needed to have skilled workforce developing and integrating all the available technologies with Blockchain.