The blockchain technology has vast potentials and numerous applications. However the blockchain technology is not the one-for-all solution it appears to be despite all the hype. Most often, some ICOs and start-ups utilise the blockchain technology in their business model. However, they adopt the technology just for the sake of it, while it remains inconsequential to their business.
The Blockchain has been referred to as the fourth revolution and lots of companies who are applying the technology without understanding their business model and the role the technology plays in it could find out that they have wasted their time and money.
On the other hand, some businesses have strategically implemented blockchain and could find themselves way ahead of their competitors. But the question remains how do I know if my business should implement the blockchain? The blockchain technology uses cryptography to keep exchanges secure, while providing a decentralized database, or “digital ledger”. Transactions in the network are immutable and since the blocks are built on a network that is essentially a chain of computers where all need to approve an exchange before it can be verified and recorded.
That being said, the business models that can benefit from the blockchain are numerous. Usually, they are businesses that have to do with the storage of data, cloud storage, business contracts, payment methods or supply chain management. It could also be employed to businesses that require improved security and transparency. So, yes the technology is filled with limitless possibilities but, there are some things you need to take into consideration. Does your business need a decentralised information storage system? You need to be sure that the blockchain would improve the security of the business or create financial inclusion. Is tokenization is needed for the business? Do you necessarily need to conduct an ICO for the businesd?
These are questions you’d need to put into perspective before plunging into the river of the blockchain. The truth is that, the business management will however have to decide the way forward.
Does your business need the blockchain? Share your opinion with us in the comment section below.
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