All businesses are based on transactions. However, the routing of these transactions is often done through external intermediaries, such as banks, lawyers, and agents – which can lead to slow and costly processing. The blockchain technology has the potential to reduce the role of intermediaries, drastically accelerating the transactions of multiple participants and reducing costs, while ensuring the protection of all parties. People, businesses, machines, and algorithms would be released to make transactions and communicate with each other with less friction. This is the blockchain promise.
However, the blockchain revolution has not yet arrived. There are adoption obstacles (such as control and organization problems) and the technology is still being explored and validated. While some industries have begun to experiment with blockchain and accounting books distributed, it is possible that their widespread adoption will occur in a few years. However, the potential impact that this technology can have on the world of business is interesting – and immense.
The blockchain as a service allows companies to experiment with the technology of accounting books distributed in the cloud. Eliminating the need for a large initial capital investment, BaaS is perhaps the simplest and least risky route to the adoption of the business blockchain. You can use BaaS to:
• Experiment and try the blockchain to see how it could benefit your business
• Use open standards to create networks of private and consortium-based blockchains
• Perform prototypes, test and develop custom blockchain applications and smart contracts
The benefits of blockchains
There is no doubt that the blockchains and distributed accounting books will change the rules of the game. These are some of the expected benefits:
The blockchain is a true peer-to-peer platform that will reduce the need for some types of external intermediaries such as banks, lawyers, and agents.
Blockchain can streamline the execution of the process in multiple-party scenarios – and allow faster transactions that are not limited by office hours.
The information of the blockchains is visible to all participants and can not be altered. This will reduce risks and fraud and build trust.
The distributed accounting books will offer a fast ROI helping businesses create more optimized, efficient and profitable processes.
The nature of distribution and encryption of the blockchain makes it difficult to hack. This is promising for business and IoT security.
The blockchains are programmable – which will make it possible to automatically trigger actions, events, and payments once the conditions are met.
Uses and Advantages of Blockchain
Blockchain has the potential to make the exchange of currency and information safer in a variety of industries, getting easier data transfers between entities. We can assess its use in various sectors or industries.
In the Health
The use of digital signatures in data based on Blockchain, accessed when multiple users authorize it, can control the availability of medical records and thus maintain their privacy. A conglomerate composed of insurers, patients, doctors, and hospitals, can also be part of the complete Blockchain, reducing fraud in payments in the health sector.
In the Financial sector
Today interbank transactions can take many days to be approved and finally entered, especially outside office hours. With Blockchain, they are processed at any time, and the time to be completed can be reduced to minutes.
In Legal Services
The Blockchains are trained to agglutinate a lot of data, like whole contracts. Certain industries can benefit through “smart contracts” or systems that impose, or facilitate, the execution of contracts through the help of Blockchain. The intermediary, as an entity that monitors compliance with the law, can be eliminated from the equation by these intelligent contracts, if the payments are completed according to agreed parameters. The peculiar nature of the intelligent contract means that the latter, through electronic means, is easily complied with, ensuring that its control does not fall on one single part.
Access or modification without authority of a vital defense infrastructure, such as a network firmware or operating system, can lead to national security being seriously compromised. The computer systems and defense infrastructure are usually distributed in different locations. If this distribution is based on Blockchain technology along with more than one data center, access is dependent on a consensus when modifying and preventing attacks on vital parts of equipment and networks.
The traditional operation of most government entities causes delays in information exchanges, worsening the service to the citizen. Using Blockchain to link data between departments, makes the provision of information happen in real time, once the citizen and entity agree to share data. The use of Blockchain can also reduce corruption and increase transparency in government areas around the world.
Without neglecting that they have to be in a reliable environment. Therefore Blockchain has the potential to change the way in which the digitized company approaches large data, with greater security and data quality.