Blockchain – a solution for your business?

Basing on a peer-to-peer network, this distributed ledger technology (DLT) creates a new world of safe transactions. Here, decentralization and transparency are the most vital qualities – it’s a blockchain revolution. 

Get to know Blockchain technology along with examples, applications and benefits that it brings. However, I’m not focusing on how a blockchain solution works but rather on its applications and perks. 

What is Blockchain technology?

Blockchain, or distributed ledger technology, is a particular type of database in which information is stored in specific groups, called “blocks” that are chained together. When new information is introduced, it’s entered into a fresh “block” and connected to the previous one. In that way, everything is in chronological order. 

By its nature, this database can store an enormous amount of information that is accessible for many users at once. Also, blockchain can be used as a ledger for any details. However, one of the most popular uses of blockchain is for financial transactions.

Is it secure? – the private blockchain networks

When it comes to data access, every “block” is permanent and sequential in a block structure. That means we can’t change the entered records since each previous “block” must also be modified.

Moreover, no centralized authority takes care of the information but rather a group of participants who store and manipulate the data. But, again, only those who are entitled to it. Each of them takes part in the blockchain administration and can view an entire history of transactions. That means every transaction has to be confirmed and verified by the blockchain network members before it’ll be added to the chain. 

The benefits

Blockchain technology was a revolution when it comes to its decentralized nature. Data safety is one of the primary concerns in most industries – cyberattacks, data breaches, invasion of privacy. It’s all there. So the fact that blockchain gives the process an additional layer of security makes it more special. Why is blockchain important? Let’s see. 

Safe online transactions

You can say that there’s a minor voting system involved when adding a new “block”. Namely, no new or altered data won’t pass through the system without the members’ approval. Each change has to be verified. Thanks to that, the transactions are safer.

Convenience

Because of blockchain-based digital identity, all the necessary information is there. Hence, no more paperwork and looking for files. Now, everything is in one space, which makes the process more efficient.

Security- monetary transactions & information flow

In terms of virtual currencies, it protects the consumer against losing money if the financial institutions (whether it’s a company or a bank) that use blockchain disappear or go bust. Concerning the information itself, blockchain facilities its flow and grants access only to the verified network members. In this way, the data stays confidential and yet, transparent for group participants.

Transparency

Changing or covering up the information is somewhat problematic, as every group participant can view all the transactions. It’s all about the peer-to-peer network. The result? No third party (which brings down the transaction cost) and the possibility of fraud is less likely to happen since any alterations will be deducted within a few moments.

Sidenote: However, you should keep in mind that there’s 51% attack in which the attacker who has more than half of the total computing power on the network can forge consecutive blocks. Hence, small projects aren’t so safe because it’s relatively easy to get more than half of the computing power in them for a while – basically, the bigger group, the more secure the project. 

Blockchain applications

The secret of blockchain technology lies in its decentralized character. This allows transparency, increases security and facilitates accessibility. And because of this blockchain strategy, it may and is used in many different industries. Let’s consider the selected blockchain applications and how the technology can transform and help businesses in their internal processes. 

Voting system

Blockchain technology would make the voting system a transparent and efficient process. Also, we’d eliminate the possibility of fraud and get a chance of getting the results right back. 

Cryptocurrencies

One of the most known examples of cryptocurrency is the Bitcoin blockchain. As I said before, thanks to blockchain, cryptocurrencies can operate without a third party, which in this case are banks. Hence, in all Bitcoin transactions, the sensitive data is secured as there’s no external risk that something happens to the third party.

Healthcare

As for the healthcare business, blockchain also has a lot to offer. First of all, in terms of the exchange of information concerning a patient’s health. The record with sensitive data would be available only to those granted access, but it’d give all the necessary information. Thanks to this, it’d be possible to track the disease’s development and many more better.

Financial services

In this case, we have third parties removed, which naturally translates to no additional fees for carrying out the service when the transaction occurs. Moreover, adopting blockchain by banks can significantly shorten the time of transactions and, at the same time, do it more securely. One of such example is RippleNet – this cryptocurrency was adopted by several banks already. 

Our experience

Building custom software isn’t a piece of cake, but we make it work. Do you want to know how? Read our Software Development Outsourcing Guide and get to know our way.

Our goal is to help entrepreneurs who want their companies to take advantage of technology. Thanks to extensive research, testing and close collaboration, we adapt the solutions to the clients and businesses. Moreover, owing to our work in many projects and industries, we continually refine our process. We’re constantly learning new ways to make your digital product more efficient, innovative and user-friendly.

Also, our experience ranges from artificial intelligence and machine learning to healthcare. Curious about what clients say about cooperation with us? Check out our Clutch profile. Or maybe you need some inspiration? Then, our UX/UI designers have something for you. Gorrion’s design portfolio on Dribbble is full of shots from the projects.

Wrapping up

Innovations are great and all, but what is truly remarkable is finding the solutions our clients actually need. That’s why we shouldn’t blindly follow yet another technology trend, but see if it’d adopt it, it’d make your business better. 

We want you to achieve your business goal. That’s why we always try to adjust the product to the market. And if this particular technology is right for you, then great. After thorough analysis and tests, we use it in a way that will give you the greatest value. If not, we’ll find a solution tailored to your needs. We won’t be using something just because it’s popular. 

Thinking about adopting blockchain to your idea? Send us a message or book a meeting with Leo. Together, let’s figure out the right opportunities for you.

Editor’s note: We’ve originally published this post in April 2021 and updated it for comprehensiveness.