Back in December 2017, the price of Bitcoin reached an all-time high at a valuation of $20,000. Financial advisors and journalists flooded news stations across the world with Bitcoin’s escalation in the market. A month later, and the price has dropped to almost 50% what it once was valued. With events like this, there’s no question that cryptocurrencies like Bitcoin have the power to shake up the market and businesses worldwide. But what exactly does blockchain technology mean for your business now? How can you stay ahead of the crypto-curve? Here’s all the insights on the impact of blockchain on business.
What are Cryptocurrencies, What is the Blockchain, and What is Bitcoin?
Cryptocurrencies are peer-to-peer digital assets that are bought, sold or transferred on a decentralized exchange. You can manage certain cryptocurrencies in a digital wallet like Coinbase.
The Blockchain is the digital and decentralized ledger that records all these transactions. This ledger is public, distributed, and encrypted in order to protect it from cybercriminals and highlights the possibility of eliminating the “middle man” provider by filling three important roles – recording transactions, establishing identity and establishing contracts – which are traditionally carried out by major banks and financial institutions. This article by Invest in Blockchain gives a detailed overview of the technology.
Bitcoin, with a market cap of more than $40 billion, is the largest implementation of blockchain technology. Other cryptocurrencies, like Litecoin, Ethereum, and Ripple, have also helped this technology gain significant influence in the market.
The Many Roles of Blockchain Technology in Your Business
You might be wondering how this technology plays a role in your business. Companies like IBM have already adapted bitcoin technology into their ecosystem, investing millions in the cryptocurrency market. According to Forbes, the best practical examples of blockchain that can impact your business today include:
- Contract Management and Smart Contracts – As a public ledger, Blockchain validates and records all transactions, making it a reliable and secure system. This will pave the way for “smart contracts” for almost any sector – such as health, insurance, or entertainment – that holds some form of digital asset or security, such as private account information.
- Payment Processing and Currency – It does not require a third party or central authority for making peer-to-peer transactions.
- Supply Chain Management – It allows for immediate status updates and increases the security and visibility of the supply chain.
- Asset Protection – Miners authorize all transactions, which locks the record in the ledger and prevents them from being hacked. Mining is a resource-intensive process where transactions are added on the ledger (blockchain) of past transactions.
- Personal Records & Password Management – IDs, Titles, Deeds and other important documentation may be shared on a public ledger.
What Can You Expect For A Future with Blockchain?
A growth in security and stability for digital assets of your business – In the way that companies like Facebook, Amazon, Netflix and Google replaced conventional media and communication companies, big banks and other financial institutions are the main target for the blockchain technology. Replacing even a fraction of this with a blockchain system would result in a huge disruption of the financial services industry, but also a massive increase in efficiencies.
A bubble like no other – There’s no doubt that there is immense amount of speculation in the cryptocurrency market. But when the bubble bursts and the hype dies down, we may find the true value when prioritizing the use cases for the different coins on the market.
A series of dramatic shifts in the financial market – With blockchain technology evolving and making rapid progress, it’s no longer a matter of when will blockchain impact your business, but a matter of how you lay a foundation for yourself amidst the competition.
The impact is clear, and with an ever expanding network and platform for growth, Bitcoin and the blockchain technology provide new ways for traditional middlemen and corporate players to take large steps into new markets. Get started on your crypto-education today.