The unique core characteristics of blockchain bring many business benefits and opportunities across multiple industries from finance to supply chain, gaming, the arts, real estate and many more. Blockchain technology and its functionalities extend far beyond recording cryptocurrency transactions with great potential for more.
Let’s see what implementing trustless, immutable, and decentralized blockchain technology can do for your business.
Distrust can be a huge corporate killer. Many businesses turn to implementing more processes, procedures, rules and regulations in an attempt to improve transparency and foster trust. However, transparency in a centralized system doesn’t always work.
Blockchain is a shared open ledger of transactional records, giving an unprecedented layer of accountability. Let’s take a private blockchain for supply chain management as an example.
Each vendor participating in the blockchain will be able to view all the other participant's actions on the network and trace products and payments. This visibility ensures each actor does so with integrity.
Businesses can utilize blockchain’s openness to establish trust with their employees, clients, and consumers, reduce the risk of scandals, and improve their brand reputation.
Blockchain removes the middleman from many processes such as payment transactions. The blockchain’s peer-to-peer network can speed things up and remove the transaction fees paid to the intermediaries of traditional payment systems.
Blockchain technology can also improve coordination between partners and replace traditional time-consuming systems. For example, all data and transaction details can be stored on the blockchain eliminating paper-based systems and the need to reconcile multiple ledgers.
Businesses can also make use of blockchain automations to streamline operations and significantly speed up the delivery of products and services. It also removes human error and allows processes to be completed much faster and more efficiently.
Blockchain technology uses security methods that are considerably more advanced than traditional record-keeping systems. On the blockchain a transaction is only accepted as valid once it has been agreed to via a majority consensus of the network. Once the data has been validated and added to a block, it is encrypted end-to-end and cannot be altered.
The blockchain’s decentralization is also one of its best security features. Unlike a single server which is easier for hackers to gain control of, the blockchain is shared across multiple servers (blockchain nodes) distributed across multiple locations. To gain control, a hacker would have to access more than 51% of the network nodes which is extremely difficult to do.
There are other examples of security implementation in blockchain technology such as MPC wallets that provide additional layers of security for applications built on the blockchain. MPC or multi-party computation is an encryption technology for key management that provides advanced security and eliminates the single point of failure.
These security features of blockchain technology are extremely useful in the prevention of fraud, unauthorized activity, and protection against hacks and other cyberattacks.
Participants in a supply chain can include manufacturers, suppliers, transportation companies, warehouse facilities, intermediaries such as equipment manufacturers, and the end-customers.
Blockchain technology allows for a common network connecting all the participants to each other, enabling each one to track and trace products and events on the blockchain ledger.
It presents an auditable trail of where goods came from and where they are in the chain of processes. This can help prevent fraud, counterfeits and the loss of goods, and help prove authenticity and provenance of traded assets.
Since the blockchain, as an operating system, is distributed across a large network of nodes the single point of failure is removed, making it more resistant to system failure.
If a centralized server goes down, any applications relying on that server will be inaccessible. With a decentralized network, if one node goes down, or even if multiple nodes go down (which is unlikely to happen at the same time), the database is still available and maintained. This means no interruption of services, loopholes, data loss, or compromised security.
Of course, blockchain technology is relatively new and is evolving at a rapid rate. This poses a number of challenges for businesses looking to integrate blockchain technology into their services or operational systems.
Blockchain infrastructure providers like Crypto APIs allow businesses to take advantage of all the benefits of blockchain technology, bypass the challenges, and avoid disruptions to daily processes or services.
Using Crypto APIs as your blockchain infrastructure provider also brings its own set of benefits such as reliable access to fully-synced always ON nodes. Our services support multiple blockchain protocols, with a processing speed of 25ms and 99.9% uptime.
We aim to make integration as simple and as quick as possible. That’s why we provide access to powerful tools in the most popular programming languages which developers can choose from.
Crypto APIs also offer a full product suite of blockchain products such as our quantum-safe MPC-based Wallet as a Service, Blockchain Data, Automations, Webhooks, and Mempool Data.
With just one seamless integration, businesses can stand out in their market and future-proof their business while maintaining focus on their main core business.
Contact us to find out more about how Crypto APIs can ensure consistency, scalability, reliability and security for your business with blockchain technology.