When Santoshi Nakamoto presented his invention –Bitcoin–to the world in 2009, he had no idea that the world would accept this innovation so willingly. Blockchain technology has been gaining a lot of traction over the past few years because of its industry-disrupting capabilities. As a result, many industries are falling over themselves to incorporate this tech. Many analysts believe that the blockchain technology is “on par with technologies like personal computers and the internet”— its importance can not be denied.
Bill Gates called this the Tour de Force of technology!
However, should all companies adopt the blockchain? What are the things that one must think about before incorporating the blockchain?
To make this decision easier for you, we have prepared a guide for you that will compel you to upgrade your business to blockchain technology.
What is Blockchain?
We know that not all of us in the business community are tech-savvy. Therefore, to give you a sense of how exactly does this technology work?
Here is a short description:
A blockchain is, as its name implies, is a series of linked data blocks. It acts like an electronic ledger that keeps records of all the happenings around it. Each of these data chunks or blocks is secured and “chained together” using cryptographic principles. The reason why the blockchain has obtained so much admiration is that:
- A single entity does not own it, making it decentralized
- As mentioned earlier the blockchain is immutable, so no one can tamper with the data that is inside the blockchain
- The blockchain is transparent due to the encryption so one can track the data.
Take shipping lettuce from farm to fork as an example. The farmer producing the lettuce will harvest and then pack it and add a digital record of it in the blockchain retail. From there, each transaction that occurs along the way will be verified and then added into the trail. In a way, blockchain technology specialists have likened it to “a series of handshakes.” Meaning that each company that comes in contact with this trail will add their side of the story to it. And will not be able to alter the existing blocks of data in the process.
Hopefully, the above example has simplified how this tech works!
And has made it abundantly clear why businesses are bending over backward in incorporating the blockchain technology
Benefits of blockchain technology
The most significant advantage of blockchain is reduced operational costs. By cutting out the middleman, this tech has made it possible for SMEs, sole proprietors, and even large corporations –who have adopted this method of doing business– to cut costs thus, generating more revenue.
By eliminating intermediaries or data gatekeepers, blockchain allows companies to quickly and easily trace their products back to their roots. This ease of traceability was unimaginable before the advent of blockchain.
The decreased workforce causes an efficient system of delivery. That results in not only saving money but time as well. According to a recent study, Walmart, since utilizing blockchain technology, has saved the time needed to trace the food from farms to store shelves from 7 days to 2.2 seconds!
Reliability, transparency, and authenticity:
The efficiency that blockchain provides has made reliability, transparency, and authenticity possible. And lest we forget — impenetrable security. As each block of data is immutable and shared across multiple systems in multiple countries– and verified before it’s recorded– it is naturally more secure.
Read more: Dubai Leading in Innovation as Usual and How You Can follow Suit?
Dubai set to become the first city to be fully powered by blockchain by 2020
What more could you ask for? The dream city is now planning as part of the Dubai Blockchain Strategy to be first in the world that is entirely equipped with the blockchain. Moreover, this strategy will heavily focus on generating new grounds for investment, industry creation, and increasing the government’s efficiency and ease of business setup in Dubai. Based on this, it is clear blockchain will be instrumental in ushering in the new wave of innovation and will change the way business is done. Additionally, it will also be conducive to the building of smart cities. That is touted to be where the developed world headed.
Possible applications of blockchain on your business setup
Now, we are going to give you some ideas regarding blockchain and how you can employ it in your business to get ahead of your competition.
Payments and money transfer:
You can quickly adapt blockchain technology to send or receive payments. This technology allows the secure transfer of funds anywhere in the world at affordable rates.
Another easy application for SMEs that they can utilize in their business immediately is Cloud storage. You can cut back on costs significantly by storing your data in these storage clouds.
Marketing is truly the king nowadays. With such fierce and intense competition, you need to be at the top of your game always! But for small-business owners and budding entrepreneurs, it can prove to be challenging to stand out. Blockchain can prove to be a lifesaver in such a situation as it enables marketers and promoters to keep track of their customers ‘ information and consumer behavior. With this valuable information, marketers can then devise marketing campaigns that are specifically targeted to their intended audience. This strategy helps bring in a better return on investment.
How to prepare your business for blockchain disruption
Whether you like it or not, blockchain technology is here to stay and will most definitely change the way we do business in the next few years. So, what can your business do in the face of such an active adversary?
- First, don’t think of it as your enemy; instead, embrace it with open arms and try to tailor your business according to its demands.
- Evaluate the technology you use to determine where information crosses trust boundaries and whether your business could benefit from the blockchain.
- Identify how this technology can help you in gaining customers
- Learn more about blockchain
- And lastly, Get help from experts in the field. Remember that you do not have to do everything on your own!
KWS Middle East is a platform that provides business incorporation services. Our in-house professionals are enthusiastic and well-versed in the business setup procedure. So, if you are thinking of starting a business in Dubai, then call us we will be happy to assist you!
Contact us today to book our commitment-free consultation call!