Blockchain Technology in Business

Blockchain is an emerging technology offering growing potential to businesses.

To clarify, blockchain technology records transactions across multiple computers. It’s a highly secure, communal chain of data that enables networks to:

• exchange assets,
• verify and store information, and
• record transactions.

The records created are secure, transparent and tamper-proof.

Cryptocurrencies such as Bitcoin and Ethereum use blockchain technology. While this is perhaps the most familiar application of blockchain, the technology offers other impressive advantages, especially for business operations.

As more organisations embrace blockchain technology, the market is set for huge growth. Its current value (2024) is $19.7 billion. Fast-forward ten years to 2034, the predicted value is $2,450.4 billion. That’s an incredible increase of 62% (compound annual growth rate). (Source: Custom Market insights.)

How does blockchain technology work?

The four steps involved with blockchain technology are:

1. Transaction recorded. A blockchain transaction shows the movement of physical or digital assets from one party to another in the blockchain network. It is recorded as a data block (this is the “block” in “blockchain”).
2. Consensus gained. The distributed blockchain network participants must agree that the recorded transaction is valid.
3. Blocks linked. Transactions on the blockchain are written into blocks equivalent to the pages of a ledger book. A cryptographic hashtag is created, securely linking the blocks (hence “chain”) and preventing editing.
4. Distribution. The system shares the blockchain ledger with all participants.

Blockchain’s flexibility, efficiency and security offer advantages in a variety of business functions:

• Contracts with terms written into the code ensure conditions cannot be changed and signatures are collected and stored securely. Blockchain technology automates the agreement execution when all the conditions are fulfilled. (Alongside blockchain opportunities, explore the benefits of digital signatures for contracts.)
• Supply chain stages are tracked and recorded securely, helping logistics and eCommerce organisations.
• The pharmaceutical sector is infiltrated by fake medicines. Blockchain technology can monitor a medicine’s lifecycle from manufacturing to distribution, ensuring its authenticity.
• Media and entertainment organisations value the privacy protection blockchain technology offers for content creators.

In addition to these private sector examples, governments use blockchain technology. This is ideal for securely capturing sensitive information. In addition, potential exists to use the technology’s transparent, secure nature to combat corruption regarding funding and voting.

Blockchain technology is one way that businesses can achieve greater efficiency via technology. There are many different opportunities. To explore the wider technology options and potential for your company, talk to the friendly experts at EMH Technology without obligation. We love exploring how emerging technology can improve processes and outcomes for organisations.