What Does BlockChain Mean for Digital Transformation?

​“We are all now connected by the Internet, like neurons in a giant brain”
--Stephen Hawking

​The world today is more connected than it has ever been before. Technology is advancing at an exponential rate and it is bringing people together like a small global village. Thanks to these technologies, a consumer’s role and demands are shifting in the marketplace. New trends are setting in which influence and sway a customer’s expectations.

Image Reference Source: https://kaula.jp/2017/09/22/applying-blockchain-to-iot/

Every few years, new technology is introduced in the market. Digitally the world is constantly evolving with newer software. For example,

• Web 2.0/3.0
• Augmented reality
• Contextual marketing
• Artificial intelligence
• Big Data

In order for companies to remain competitive, organizations must upgrade and evolve their digital transformation drive to focus on the new areas of technology. Blockchain is one such technology which has had an enormous impact on the market. 

What is Blockchain?
​
“The record-keeping technology behind bitcoin…blockchain is a distributed, decentralized, public ledger." 
Source: https://www.investopedia.com/terms/b/blockchain.asp
Blockchain is an encrypted digital ledger, recording transactions chronologically and publically. The recorded data cannot be altered without changing all subsequent blocks and it is readily available for cloud-based solutions and software.
One of the prime benefits of blockchain is the ability to enable secure transactions which also supports today’s flexible mobile payment systems. Security, networking and data preservation play a very significant role in ensuring cybersecurity of information being shared of any contemporary business.
Approximately 94% of companies have increased focus on digital transformation and most admit that digital is central in their business strategy. More than 1/4th of these companies have invested in Blockchain technology as there is going to be a significant growth by the year 2020.
Source: https://www.itproportal.com/features/what-does-blockchain-mean-for-digital-transformation/

Image Reference Source: https://www.business2community.com/b2b-marketing/b2b-digital-transformation-primer-2018-02017353

Blockchain and Digital Transformation

Digital transformation is a complex challenge taken up by an enterprise but the integration of Blockchain and IoT makes the process smoother. The ease with which multitude of electronic parties can securely communicate, collaborate and transact shows greater agility and efficiency.
It is believed that by 2021, prominent value chains, enabled by blockchain will extend their digital platforms and reduce transaction costs by 35%. Robert Parker, VP of IDC Group, believes that this year will see a transition to more consortia-based initiatives and whole value-chains will come together to “take advantage of the immutable records and the distributed ledger capabilities in blockchain.”
Source: https://www.ledgerinsights.com/riskblock-acord-blockchain-standards/
Blockchain transformation may have started with Bitcoin in 2008-2009, but the growth has not stopped since then. Its impact can be seen and felt in all industries. The change being witnessed is transforming the customer experience. Let us have a look at different sectors affected by blockchain:

Technology

Companies like Microsoft, Amazon, IBM and SAP are said to have introduced a version of blockchain-as-a-Service to go with other services they are offering.
Source: https://www.forbes.com/sites/danielnewman/2017/11/07/5-predictions-on-how-blockchain-will-drive-digital-transformation/#3b5fc379b95c
​

• Cloud Storage: Traditional cloud storage used to be vulnerable to security threats and hacks, however blockchain transformation makes it a decentralized system and hence less likely to be exploited.

 

• Energy Management: Power is needed to do everything in this world. Unfortunately we have limited resources and methods to fulfil the energy requirements are also low. Blockchain helps change how energy is stored, distributed and produced.

 

• Cyber Security: Companies spend a lot of resources to ensure their data is protected and confidential. Since blockchain changes how security is implemented, it changes how data is stored and hence denies hackers one place to hack.

 

• Internet of Things: Blockchain’s ledger technology makes things transparent while offering more security and opportunities. Devices communicate with less friction and more information is passed between a trusted network of devices. 

Image Reference Source: https://www.i-scoop.eu/blockchain-distributed-ledger-technology/blockchain-iot/

Media

This industry is not only evolving each year but it is also a lucrative multibillion dollar one. Blockchain makes this industry more accessible to consumers as well as content creators.

• Advertising: This is a core business model for many companies, which provide services for free. For example, Google and Facebook. Blockchain powered browsers can protect their privacy and turn off advertising.

 

• Market Analysis: Evaluating and forecasting is a complex procedure and cannot be done by humans alone. Blockchain market evaluation tools, hold immense amount of data and make it easier and quicker for businesses to make better decisions.

 

• Gaming: Decentralized gaming platforms helps independent developers release their games in a previously closed market.

Law

Strict guidelines are enforced which ensure low crime rates and blockchain transformation helps in the following way:

• Police: Blockchain helps maintain the integrity of the evidence and data collected. It can also be shared with no fear of evidence tampering which adds necessary layer of security.

 

• Gun Tracking: Illegal gun sales are a rising concern in many states across the world. Blockchain technology would make it possible to account for and track guns as soon as they leave the factory. Thus reducing illegal gun usage and export.

Transportation

• Business Transportation: Blockchain helps easy data coordination using DLT, automates and personalises transport solutions, and even offers secure, cost effective routes to transport sensitive products. Making this technology a boon for logistic and supply chain industries.

 

• Automotive: Self-driving cars have already arrived and companies like Volkswagen, Porsche and BMW have their own or are creating their own blockchain apps.

Public Services

Governments are constantly improving how they provide services to the average and everyday people. Blockchain transformation helps them in the following ways:

• Governance: Transparent voting systems which minimize frauds and protect a citizen’s right to vote along with ensuring low and order is maintained helps governments bring about the much needed change and growth to the people.

 

• Healthcare: Sustainable, saleable and secure healthcare is of utmost importance to the people. Blockchain transformation makes it possible for hospitals and medical staff to communicate and share data more effectively and hence provide better treatment.

 

• Education: Not only government but private organizations also use the blockchain educational apps. Verifying academic credentials, the transparency and freedom to retrieve or check data also reduces the need for paperwork.

What Next for Blockchain?
​
New technologies are constantly revolutionizing businesses but digital transformation is not just about technology and trends, it is about the customer’s experience. Businesses need to evolve because the customers’ expectations are evolving.
Source: https://www.forbes.com/sites/danielnewman/2017/10/24/blockchain-and-digital-transformation-go-hand-in-hand/#4a0f1b7a46f7
This hacker proof technology is being considered a foundation on which the world economy can base its digital transformation. The promise it holds to push out the middleman from most business processes, ensures it is not going away anytime soon.
If you would like to achieve a blockchain transformation or discuss how potential threats to its growth can be eliminated, contact the App Scoop mobile app developers team on: https://www.app-scoop.com/contact-us.html.