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Feb
14

Blockchain – The Next Generation Business Revolution

All these years, the corporate sector has been working in the respective silos. Customer identity and records were restricted to the sector in which a customer was dealing. With technological growth, the need of the hour was the quick flow of information and prompt decision making. For all those who have been hoping for this transformation, blockchain is good news.  In recent years, block chains have emerged as a path-breaking revolution in business technology. People who are working on use cases claim that it is going to be the potential game changer in the field of business. The emergence of the digital five forces – social, mobile, analytics, cloud and internet of things are creating a robust base for the growth of block chains.

For laymen, blockchain is a synonym to cryptocurrencies, which is not true. Cryptocurrency is an application of the block chains, but it came into existence much before the earlier application started. Also, cryptos became very popular, owing to their basic nature, but the other applications are not yet known because they are in the growth stage. Blockchain technology has many other advantages than just Bitcoins or Ethereum.

Let us understand this by an example: for ensuring a customer if an insurance company could have access to customer records which have been generated by the healthcare sector (right at the source) and later shared on a pooled platform for use by other sectors like insurance, bank, pharma etc. Imagine how much time will be saved by the insurer to collect those bulky documents from the client. They can instead focus on the non-trivial issue. The reduction in turnaround time (TAT) would not only result in cost saving for the companies, but it would also help the customer by way of structured documentation, eliminating chances of fraud.

A couple of questions that a layman could have on blockchain are – what are block chains? Is this a software or technology? How can it transform the way we do business? What is the value proposition? And, what is the future of block chains? This article answers all these questions for you.

If you are not able to understand what blockchain is all about, then it is a series of blocks joined together in a chain through a code, which is not easy to crack as it is a cryptographic hash of the previous block, a timestamp and a transaction date. One can visualize block chains like a Jenga where blocks are placed one over the other, the moment a block is pulled out from between, the entire Jenga collapses. So when someone tries to tamper a block, either the chain will collapse or send out warning signals to the other participants. The blockchain is technology. It can radically transform business transactions as has been evident by the use cases in this area. The most remarkable results have seen blockchains used to store information, reducing intermediaries, and enabling better coordination between companies.

The initial results show that it is going to be highly beneficial for sectors like healthcare, pharma, diamond business, and financial services. Amidst intense experimentation, industries from financial services to healthcare and the arts have identified hundred plus blockchain use cases. Few examples could be new land registries, to KYC applications and smart contracts that enable actions from product processing to share trading.  Besides this, block chains also have the benefit of eliminating fraud, identifying anomalies in the system and exercising robust internal controls.

Currently, blockchain for the industry is what the internet was in the early 90s. There is hope, but at the same time, there is doubt. While some people believe it is going to be very useful, others feel it is adopted by the companies directed towards modernization.

Currently, blockchain for the industry is what the internet was in the early 90s. There is hope, but at the same time, there is doubt. While some people believe it is going to be very useful, others feel it is adopted by the companies directed towards modernization.

Nevertheless, this ambiguity has always been whenever a technological innovation has happened. Blockchains currently are in the growth stage. If one was probe deeper in the details of the blockchains and the way it operates, it might come across as an expensive but a worthwhile investment. If you look at all the sectors together rather than breaking them up. If there is one technology which can put them together for conducting business, it shall be blockchain.

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