Francis Fukuyama, a political economist, did predict a future where the importance of social capital would increase just as physical capital, and only economies with a high level of social trust would have the capability to create large-scale organizations; those that can stand the competition in the new economy.
Fast forward to two decades later, here comes an incredible tool that is stirring up the foundations of social capital at the level of every transaction; the name, blockchain! It is gathering momentum as the data technology underneath the cryptocurrency called Bitcoin. But the interesting thing perhaps is the expansion of blockchain technology far beyond the confines of currency and resolving issues as regards social trust around the globe.
The blockchain is a secure, shared data layer that can be used by enterprises to digitally track the ownership when it comes to assets across trust boundaries, setting up new opportunities for imaginative new business models and cross-organizational collaboration. Being a shared source of trust, it is capable of extending the scope of digital transformation from a single company, alongside the processes it shares with customers, suppliers, and partner.
Almost all business around the world can tap into the benefits of adopting blockchain technology. At the moment, the majority of focus is on the financial sector, where blockchain can be used to speed up transfers and bring associated costs down. Embracing this technology comes with so many advantages.
Blockchain put users in control of the transaction and information, which is not necessarily in the best interest of the companies involved. And those organizations who do not give users the control, they may find themselves at the receiving end of the stick much quicker.
Giving way to A Trustless Environment
Blockchain technology enables a trustless ecosystem. Business has a whole lot to do with trust in one way or the other, and it is fast becoming a precious commodity. Multiple parties may no longer rely on inter-mediation to minimize counterparty risk, which is a must for the future of business.
Another reason to embrace this technology is the fact that it allows for a complete ecosystem, which is possible to view by all parties involved. This is another reason third parties should be eliminated.
Data Quality Improvement
Regardless of the niche that your business belongs, collection and processing of data is of paramount importance—or ensuring that the data is genuine while using it to identify problems, needs, or improvement if need be. Unfortunately, this process is not suited for traditional solutions, and blockchain can create a significant impact in this area.
Transactions at the Speed of Light
The financial sector can be bogged down by delays in clearance and settlement, and blockchain can be the much-awaited solution. For now, a large part of these projects is still in the proof of concept stage, but what is inevitable is the change to the distributed ledger.
I guess you’re nodding your head in affirmation and you’re about to open your arms to grab the blockchain technology, having digested the information in this blog post. Embrace it, leverage it and be better for it.