A successful business always keeps up with the times. It implements new ideas and technologies. So naturally, modern undertakings should be relevant and technologically advanced. One of the exciting and functional technologies is Blockchain. But like many other popular ideas, this system has become overgrown with myths. We will dispel them today!
Common Myths About Blockchain
There are many misconceptions associated with Blockchain technology. For example, some people argue about unreliability, while others are firmly convinced that there can be no application other than in cryptocurrencies. Let’s take a closer look at each myth and debunk them!
There is only one common to all Blockchain
Naturally, this is not true. Newcomers in IT often believe that the Blockchain is a different platform or a unified algorithm – this has nothing to do with reality. Naturally, the statement about “the only algorithm” comes from distrust of the founder of the technology – cryptocurrencies. However, blockchain technologies are used not only in cryptocurrencies but also in small businesses. It makes it possible to configure data access only for a few people for critical tasks.
Blockchain has perfect security
This is not a myth. Indeed, this technology is distinguished by excellent protection. Otherwise, the cryptocurrency market has yet to reach its current popularity. Although there is still an opinion – “If it is created by a person, then it can be hacked,” – yes, there are no 100% adequate protection systems. But blockchain hacks are incredibly rare, and violators usually fail to get away with impunity.
Only criminals will use Blockchain
A myth that gained popularity at the dawn of the formation of cryptocurrencies. The roots of this misconception lie in the lack of taxation and the problem with tracking transactions carried out by notional bitcoin. In addition, since Blockchain does not allow deleting data, there are no opportunities to “hide” something.
Blockchains cannot be integrated into business
The last of the common myths about the uselessness of the system. People often see the word Blockchain – mining. Combining cryptocurrencies (an element of the market) and a security system leads to wrong conclusions. Blockchain can be used to protect customer data and simply financial reporting.
It can take a long time to debunk myths. But let’s move on to a much more significant part – how to use Blockchain technologies in business!
How to Apply Blockchain Technology
Without further ado, let’s get down to the possibilities of Blockchain!
No fees when paying
Thanks to coding, you can avoid paying bank fees and pay directly to the client. This is not tax evasion because the concept implies the transfer of funds, not the “opacity” of transactions. Such payment is also convenient if you have employees who work remotely and live in another country.
You can sign smart contracts
Although the term itself is old, the development of Blockchain technologies breathed a second life into it. By itself, it is simple. All thanks to the high level of protection of the algorithm and the ability to clearly define and flexibly configure conditions. As we said, the technology is far from new, but the algorithm can be used in your business due to the impossibility of rewriting the contract terms. Flexibility is an essential trait in the IT-industry.
Use in cloud computing
Cloud computing is our future. They may not replace physical storage media but will seriously compete with them. We will again give an example of the excellent security and flexibility of the algorithm. Also, Blockchain in cloud computing is especially relevant because of the convenient and efficient data encoding, which prevents any hacking or damage to information.
Improve the delivery system
Do not be surprised, but there is a place for this algorithm in delivery companies. As we say throughout the post – data security is paramount. If your company is engaged in logistics or delivery – then pay attention to Blockchain algorithms. They will make the same chance of losing any data impossible. Companies have yet to decide to integrate this technology into their business, but we are sure that such adequate protection will become more popular.
Thinking about how to use secure databases can take a long time. However, many more opportunities and prospects await us in the future. Let’s look at them!
Future of Blockchain Technology
Technology is constantly evolving. Cryptocurrencies entered our lives only with the rise in Bitcoin prices and Blockchain with Ethereum. Web 3 development is already one of the most promising areas in IT today. In the future, crypto-currency technologies will be actively used in small and medium-sized businesses. Consider their potential and fantasize about the future.
Let’s start with the cryptocurrencies themselves. The fact is that the hub of most crypto-units is China. Despite the Chinese government’s tight control, restrictions, and general hostility to Blockchain and mining, about 50% of the “players” in the crypto market are still concentrated in the country. This state of affairs leads us to an unexpected conclusion – the systematization of cryptocurrencies and their binding to a certain standard. Although today there are tokens pegged to the dollar (and not only to it), they are not widespread and are used to pay commissions and not for trading.
The next likely step will be integrating the Blockchain system into the banking sector. The mass use of cryptocurrencies and their methods will likely be around for a while. But the simplification of transactions and the use of tokens to pay commissions is reasonably expected.
Soon Blockchain will begin to penetrate the business – as we said above, any field of activity that requires large databases will most likely switch to this coding technology. Of course, the transition will take a while and years, but we are confident it will happen. In the future, more and more countries will probably begin integrating cryptocurrencies into their financial sphere.
It should be noted that although cryptocurrencies remain a volatile asset, this does not mean that the associated technologies are the same. The lack of stability is primarily due to financial specifics rather than the algorithm.
Wrapping Up
The Blockchain is a complex technology to implement into your business workflows, as it requires a lot of technical knowledge from the implementer. The experienced software development vendor can help you. The company experts will give you an in-depth consultation as to disturbing tech questions, and carefully guide you through the process of the Blockchain-based software development in order to deliver you a powerful solution that will boost your business performance and increase profitability.