Blockchain has the ability to transform the way we do business in a number of spheres, but, as critics have stated, blockchain is not suitable for every business. If you’re considering a startup and wondering if blockchain should be implemented somewhere along the line, our guide should help you get a sense of whether your idea needs blockchain or not.
Transparency
Would your startup benefit from additional transparency in its supply chain or processes? This is one of blockchain’s major benefits, and explains why many in the food and medicine industries are experimenting with it. If your startup features any kind of supply chain or a range of processes, then consider whether customers would benefit from being able to verify steps along the chain.
An example of this would be organic produce, where consumers can verify the authenticity of food items before they buy, or charity organizations, where donors can see exactly where their money has gone to ensure it hasn’t been improperly used.
Security
Blockchain technology can also enhance the security of a record-keeping system. If your record keeping relies on third parties adding data, then having them do so on a decentralized, open ledger where that data needs to be authenticated by a number of parties is a great way to ensure that it is as accurate as it can be.
It is important to note that blockchain technology cannot prevent fraud at source, but the use of multiple, unconnected entities to verify each entry before it gets added to the ledger at least flags up any obvious anomalies before they lead to problems down the road.
Also, each verifier (called a ‘node’ in a blockchain) keeps a record of the transactions, meaning disparities can be easily proven. This has an additional benefit that if a node is taken out of service then the others can still act to form a consensus.
Costs
Blockchain technology, if implemented correctly, has the potential to save businesses billions of dollars globally every year. Blockchain has no centralized player, meaning there is no need to pay a vendor any operational or maintenance costs – once it’s up and running it just gets on with the job.
On top of this, validating transactions requires much less interaction between parties, further removing the need to spend money or time on essential functions.
Speed
Blockchain solutions save time as well as money. They are much more efficient than a network of centralized or disparate systems, and are even interoperable, meaning that companies operating on different blockchains can still talk to each other and work together.
Blockchains save time because all the transactions are processed and validated instantly – there’s no hanging about and waiting for one to come back from lunch before a shipment can be signed off.
When combined with smart contracts, blockchain technology has the ability to massively increase the speed and capacity of any system where multiple processes are involved.
The Big Boys are Already in the Game
With the above examples, we hope you can see how blockchain solutions have the ability to change the nature of any number of industries, from international banking to airplane repair. It is no surprise that blue chip companies like IBM, Amazon, Alibaba, JPMorgan, Nike and many more are getting involved in blockchain technology, as they can see all too clearly how it has the ability to transform how they do business.
Blockchain also has a range of high-profile supporters, including UN Secretary General António Guterres and President of the European Central Bank Christine Lagarde, so it is inevitable that the technology will play a part in the future of business and banking.
Whether your startup can truly benefit from blockchain technology is something only you can know, but if it your potential business would benefit by improved transactional transparency, security, cost, or speed then it might well be something worth researching and embedding from the start.
