Bitcoin has made quite the mark in the past few years, and understandably so. With a skyrocketing worth that plummeted just as quickly, causing speculation around whether or not Bitcoin is built to last, the news is filled with all things cryptocurrency. Nevertheless, despite the controversy there is actually a lot more to Bitcoin than meets the eye. While bitcoin dice gambling sites and retail purchases are a great way to spend Bitcoins, businesses are starting to look at how they can use them – or, more specifically, the technology they run on called ‘The Blockchain’.
So, What Is the Blockchain?
The Blockchain is the technology that makes Bitcoin, well, bitcoin. It enables this digital currency to work without a centralised authority, and is essentially a distributed ledger that stores each and every transaction that takes place using the currency. Every payment that has ever taken place with bitcoins can be seen and accessed by absolutely anyone. Now, I know what you’re thinking – how can it be safe if everyone can see it? Well, with the Blockchain being accessible to everyone, it means that the ledger is stored across thousands of computers all over the world. This makes it practically impossible to hack, or for anyone to fake a transaction or Bitcoin.
How Can It Be Applied to Businesses?
So now that we know what the Blockchain is, how can this possibly benefit businesses? Well, here are just a few ways to get you started:
- Smart Contracts
Smart contracts are self-automated computer programs that will carry out the terms of any contract automatically. This enables another level of financial security that ordinary contracts just don’t have. Businesses can use these smart contracts to completely bypass regulation and lower the costs of many of the most common financial transactions. These contracts are unbreakable too! In short, smart contracts are low-cost, secure and unbreakable and are all available thanks to Blockchain technology.
- Cloud Storage
Storj is a blockchain-based, encrypted and distributed cloud storage facility, but don’t worry – just because it works on the Blockchain, it doesn’t mean that anyone but you can access your data. This particular cloud storage has higher availability than most average cloud storage systems, has end-to-end encryption, and is extremely fast, giving you practically instantaneous access to your data at any time on a much more secure and trustworthy network.
- Supply Chain Communication
Blockchain technology within the supply chain could provide permanent, auditable records that can allow stakeholders and more to view the state of a product at any single step. In traditional supply chains, it’s rare that a company will collect, produce and assemble the final product. Instead, they’ll bring in different materials and components from other suppliers and assemble the product themselves. If there’s a hold up in one area, then this could disrupt the entire supply chain. Blockchain could increase transparency, and ultimately avoid these disruptions on a much more reliable scale.
There is plenty that Blockchain can do for businesses, and the possibilities truly are endless when using Bitcoin as a currency. From increased security, to improvements in business activity, this phenomenal piece of technology is changing plenty of industries for the better, and will continue to long into the future.