How can your business benefit from blockchain technology

Every year new technological concepts jump into the entrepreneurial slang that represent a before and after in the development of an irreversibly connected market. Some may be just a fad, but there are some that mark more than a passing trend and open paths that, to a greater or lesser extent, will transform society. This is the case of blockchain, although its use and appearance dates back to the time of the birth of bitcoin over a decade ago.

What is blockchain technology?

Blockchain refers to a data structure in which the information is contained in an encrypted and non-centralized way. Through this technology, any digitized data can be transferred without having to centralize the information on a server that is controlled by an organization or company that verifies, but is transferred and recorded in chained blocks, openly but safe.

To get a clearer idea, we can imagine the blockchain as a shared spreadsheet among thousands of teams. If one of these teams updates the information, the rest have this new database immediately modified. It was the technology that served to support bitcoin with a database that systematically shared any record. Essential to guarantee transactions that, as in the case of cryptocurrencies, are not under the protection of any bank or authority.

Nowadays, there are many start-ups, technology companies, consultancies and communications service providers that have turned to the development of products and services based on blockchain and associated technologies. As has happened with Artificial Intelligence, Machine Learning, Big Data or IoT, the market is orbiting around the blockchain with an estimated value that could reach $ 15.90 million in 2023 according to data from the consulting firm IDC, thanks to its multiple uses.

What are some blockchain applications

The truth is that, beyond the scope of cryptocurrencies, the applications of blockchain with attributes such as transparency, disintermediation and traceability, are unlimited. More even when Artificial Intelligence and Big Data come into play.

These are some of them:

Fintech: banks applying technological solutions to the services they provide has resulted in a fully consolidated alliance called Fintech. Transfers, purchases, loans, income, investments, etc. Adding blockchain technology to the equation projects a world of possibilities for improvement in this area, reducing intermediaries and increasing security.

Energy: blockchain technology is also called to shake the foundations of the energy sector with the aim of improving the efficiency of, for example, the management of consumption peaks, wholesale trading or the sale of energy without the need for intermediaries, with secure transactions, encrypted and anonymous.

Digital identity: verifying that we are who we say we are is one of the areas in which the blockchain has a lot to say -and improve what the Internet has not achieved so far. The use of this technology comes to revolutionize the services of electronic signature, document verification and digital identity making use of its main attributes: traceability, automation, security and immutability. British Airways, for example, has implemented this technology to manage flight data and verify the identity of travellers.

Logistics: traceability is a key aspect in the logistics sector. For example, guaranteeing and knowing the origin of food through blockchain programs in which information is transferred and shared without risk of alteration can mark a turning point, allowing companies and consumers to access all kinds of information related to their distribution. UPS is an example of a company that has promoted to a logistics management and monitoring solution powered by this technology.

Healthcare: healthcare is another area in which blockchain cries out to heaven. Information in the healthcare sector is more sensitive than in any other sector. Information related to the patient would allow to be consulted and shared between centers without compromising their safety and veracity, so the patient could manage and grant access to their medical records anywhere in the world with maximum security and privacy.

Voting: is it possible to vote without going to vote in a democratic country? And that this vote is 100% reliable and cannot be altered or compromised? Voting is another of the uses that make the impact of blockchain technology on society more evident on day-to-day basis. Like any other data that can be digitized, blockchain would allow the voting system to be opened, accessible, transparent, fast and independent.

The article has been written by Dr. Raul V. Rodriguez, Dean, Woxsen School of Business

He can be reached on LinkedIn.