Transforming Business by leveraging Blockchain
Blockchain has become a gold mine for uncountable people across the globe. A lot of people are crazy about this technology, right from the developers to the common people. When we hear the term “Blockchain,” two things that spark in our mind are- “Cryptocurrency” and “Bitcoin.”
Undoubtedly, the success of Bitcoin brought Blockchain mechanisms or technology into the spotlight. But, apart from these two, there are plenty of other applications as well. In this article, we will be discussing it thoroughly.
What is the Blockchain mechanism?
Blockchain is a distributed or decentralized ledger, and on it, the data is stored in the form of records and transactions. All of these transactions or records are unalterable. In short, nobody can change or modify the data once it is recorded.
Inside one block, about hundreds of transactions are included. And every fresh block is chained or recorded to the earlier block. This leads to the creation of a blockchain. The ledger’s copy is always kept by the node or participant within the blockchain network.
So, if anyone still tries to change the data in the ledger regardless of the rules, all the other nodes or participants will disallow the change. And this change will not be validated according to the rules. It creates a system where a single truth source is there about the data on which every person can trust.
This makes it easier for businesses and organizations to do business with other entities without the involvement of a mediator. Blockchain also offers a concept called “Smart contract.” It refers to your business intelligence and application.
Challenges that several industries face:
For understanding how blockchain development and mechanism can revolutionize businesses, there needs to be a clear understanding of multiple challenges that several industries like pharma, automobile, and automotive are facing currently.
Firstly, let us consider the automotive industry. The economic loss or cost because of the fake automotive parts or the counterfeiting of the parts will increase drastically, as per the World Trademark Review. Counterfeiting the automotive parts is responsible for the economic loss or cost. It also puts people’s lives in danger inside the vehicle. Besides, it damages the automotive Original Equipment Manufacturers’ or (OEMs) reputation as well. Latest technologies such as 3D part printing make it easier to create fake parts, and this has catalyzed the problem.
Another problem the automotive industry is facing is associated with their vehicles or products’ recalling. Several companies out there invest huge money to recall their products. And this particular activity harms their profit. The product recall needs to have maximum accuracy.
But several OEMs make use of window-based methods that are similar to the trial-and-error method, and the recalling accuracy proves to be poor. All these challenges can be mitigated with enterprise blockchain development.
Another classic example of counterfeiting is the pharmaceutical industry. The fake drug market is of massive size.
How does Blockchain offer the solution?
The challenges associated with counterfeiting are addressed by Blockchain. Several industries offer multiple blockchain platforms or core engines like Ethereum, Multichain, Corda, and Hyperledger. SDKs come along with these platforms, and this can be put to use for developing apps. In short, business transformation using Blockchain is possible.
Some blockchain platforms or core engines focus on specific applications. For instance, Ethereum offers the correct support in developing apps associated with cryptos. Corda offers support to several built-in modules for the apps related to finance. On the other hand, Hyperledger is put to use for enterprise apps.
Information associated with the automotive parts, such as supplier code, serial number, timestamp, date, and others, will be recorded on the Blockchain via automation. An experienced Blockchain solution and services provider will help you to do so seamlessly.
Similarly, when it comes to transporting, unloading, and loading, the related information gets recorded on the Blockchain at the node of the transporter. Also, when the center of parts distribution of an OEM receives the parts, the information is recorded as well. The node of the OEM owns the dealer within a ledger. All the transactions are validated by the ordering nodes before inputting them inside the Blockchain.
A mobile-based application is provided to a customer. When a part is bought by a customer, the QR code can be scanned, or the serial number of the part can be entered in the app. The app will connect with the blockchain network to get the parts’ status, and the customers are informed about whether the parts are genuine or fake. If it is a fake part, the OEM can be notified by the customer from the app itself.
When Blockchain is integrated with technologies such as AI and analytics, it can boost the efficiency of organizations. Some of the applications offered by a reckoned Blockchain consulting company are as follows.
- Supply chain- Commodity contracts, 3D printing IP protection, and smart contracts with IoT
- Manufacturing- Product recalls, material tracking, and end-to-end digital thread- 360-degree traceability
- Finance- Imports invoicing, leasing, settlements, and clearing
Every sector needs to take blockchain technology seriously. The tamper-proof, decentralized, and unalterable nature of the blockchain mechanism makes it perfect for streamlining the trading of assets, payments, securities issuance, retail banking, and settlements.
Blockchain mechanism is no longer just limited to cryptos and bitcoin, and it can be used for various other purposes. So, if you want to implement Blockchain in your business, opt for blockchain consulting services.