Businesses all over the world are trying to understand how integrating blockchain technology into their businesses will benefit them. However, one of the main challenges in implementing blockchain technology is lack of know-how. Most of them fear that the cost of implementing blockchain technology in their businesses will be high. They also think that this technology may bring many problems to the business in case they choose to. Although the two issues are debatable, the reality of the matter remains that implementing blockchain technology in business shouldn’t be traumatic and expensive.
The technology holds the promise of revolutionizing many of the problems that underwrite the global economy. However, the technology is still in its infancy and a lot is still underway. The technology itself is a highly secure and algorithmic immutable ledger that provides a future-ready architecture for companies to transact and exchange critical business information.
Benefits of integrating Blockchain into your business
Blockchain technology has several benefits to the big data. It is a new and a useful method of managing data. Most of the people compliment that the technology is more transparent because there’s nothing can be changed without undergoing the due process of authorization. Changes have to undergo every server approval in the network. Everybody faces and comments on the changes undertaken and there’s no one authority that controls information.
Blockchain technology implemented in the banking sector allows fewer mistakes and also cuts the likelihood of fraudulent transactions. Every transaction conducted through this platform undergoes encryption and time stamping. What this means is that they cannot be tampered with once they occur. This gives people a more secure and automatic method of following up all the activities done through the platform. This is extremely important in securing your data especially at this time when the cost of cybercrimes is expected to rise dramatically by 2019.
The reality of the matter is that there’s no single weak spot that can damage the documents. Every document is shared by every node. What this means is that if one user makes a mistake, it will not reflect directly to other users because other servers will supersede it. It will also be much easier to access the mistaken code because every node in a network shares information.
The blockchain technology also allows every member of the network access to all the data. This allows them to get a clearer picture of the data. Consequently, they will be able to make better analytical conclusions. Blockchain technology has several features that we know are beneficial to every business. Majority of businesses in the world are looking for a way to capture competitive advantage without having to undergo all the processes of development. The rate of revolution in the blockchain community is dramatic. This gives the whole world a whole new level of expectations. The technology is promising a lot to the business community in every part of the world.
The reason why I think your company should be involved in this technology is that the biggest opportunities are going to come from the blockchain world soon enough. The companies which will get to be involved in the blockchain technology now will have the powers to determine how the rest of the industries will use blockchain technology in the future. The other thing is that blockchain technology will be creating a lot of chaos. This will soon present your company a chance of either responding to this chaos or just driving it. There are several companies out there who will soon be scratching their head regretting why they didn’t take this technology early enough.
The transparency, disintermediation and immutability that come with Blockchain technology implementation allow blockchain network participants to remove the need for third-party mediation. In addition, it gives businesses an opportunity to perform trusted transactions without the help of the third party.
The bottom line is that blockchain reduces transaction feels, insecurity and third-party mediation. The technology eliminates counterparty risks through its ability to withstand malicious attacks. In addition, it empowers its users and offers them full control over their transactions and data.
Blockchain Technology implementation
So now what about integrating this technology into your business? The first question to ask yourself is if the technology will be beneficial to your business at all costs. Based on the above benefits of integrating blockchain technology, if you believe the whole process will be beneficial, you need to start the engine and make it work for you. While blockchain is a very beneficial technology, it is likely to take a while before the whole idea come into reality. It will require a new infrastructure, injecting a lot of money into the process and retraining your staff. It also involves the process of convincing an increasingly ignorant population involved in the company’s operations that implementing the technology is really worth it.
This is a huge cost involved but a successful implementation would pose long-term financial benefits to the company. A research conducted recently estimates that implementing blockchain technology into your business could save companies up to 30 per cent of their back-office costs.
A Step by step guide for Blockchain implementation
There are several things that you are supposed to consider before embarking on implementing blockchain technology. You should determine the benefits you expect from the whole process. You should be versed with the opportunities that your business will get from the technology. Decide whether your business needs transparency, security and efficiency. In the move to implement this technology, the company should first explore which wing of the company needs it most and which areas will the technology get the most customer benefits. Smaller companies should look for a bigger company to implement the technology for them. However, if they have the required human and non-human resources, they should build it internally.
The second thing is the budget implementation schedule and retraining your staff from using the new technology. Although very few companies in the industry have successfully implemented the technology, it can be beneficial to both small and big corporations, especially in the banking sector. Several experts believe that BlockChain technology could be a game changer in the world of technology. They believe that soon this technology will affect almost all industries and the companies which will come step by step with the technology will be on the safer side.
Blockchain technology has the potential to reshape the future of businesses, finance and government. Many of the world’s most successful businesses have already got their resources together to implement the technology and they are enjoying huge benefits.
Levels of Decentralization
Before implementing the technology you must, first of all, consider the level of decentralization in your organization. This will help you determine whether you have to implement closed blockchains or public blockchain. More trust is required in case the organization is highly centralized. In most companies, centralized systems are primarily the status quo. More computing powers are required as the systems of the organization become increasingly decentralized.
According to EY, in the Document of Implementing Blockchains and distributed infrastructure says that a centralized configuration reflects the current status quo. What this means is that one person controls the system and hence a lot of trusts is needed. In this case, other parties are only provided with read-only rights to review the ledger history. Levels of user types in hybrid blockchain ecosystems are read-write and validate. In the case of full decentralization, every participant has direct access to the ledger. Fully decentralized systems rely on the economic incentives of tokens for participants to validate transactions.
Identify a Use for your Business
Erstwhile to get on blockchain implementation; identify your company’s use case for the technology. Do a comprehensive research to identify, clarify and organize the functional requirements that are needed for system implementation and scaling. Ensure that every participant in the system is well versed with the significance of the Blockchain system for each user impacted by the change.
Partner with Blockchain vendors
Be sure whether your company will partner with outside blockchain vendors or you will implement it internally. If the blockchain technology involves a very sophisticated implementation process and if it plays a Pivotal role in the company, you may be forced to hire Blockchain expert to do the work for your company. However, it is important to maintain blockchain Know-how in your company internally for system repair, maintenance, evolution and scaling.
Testing and Field Trials
After all the above things are put into consideration, your organization should decide whether to implement the technology or not. If your company’s decision is to proceed, then the thing to follow is to conduct field trials to come into familiarity with what you should expect. You should implement Blockchain into a limited level of internal systems to easily scale the system and take notes of any rising technical issue.
Full implementation of Blockchain technology to the organization systems should follow successful field trials. By now, very few companies in the world have successfully implemented Blockchain technology into their organization systems. Though, they are enjoying a vast collection of benefits through the simplicity, safety and the ease of making transactions brought about by the technology. Companies running into full implementation will realize gains through the elimination of third parties and the increase in overall efficiency. Invest in educational conferences to stay up to date with the upcoming issues in the Blockchain community