We’ve previously written about the future of blockchain technology and how industries are starting to take advantage of its security and data management capabilities. Sage has also recognised the business benefits of blockchain and created the below guide on how the technology actually works. Hopefully, this will help breakdown the complexities of blockchain for those thinking of incorporating it into their business.
While blockchain was initially created to support and record cryptocurrency transactions, today it is used to improve everyday business processes. For example blockchain can be used for:
● Smart contracts
○ As blockchain technology makes it impossible for information to be changed or corrupted, it’s perfect for verifying and processing contractual agreements without a governing third party. Companies already use smart contracts to facilitate a range of operations such as processing real estate agreements, lodging insurance claims, and even reimbursing customers for flight delays.
● Payment and money transfers
○ Over 1,000 companies currently use blockchain to process cross-border fiat payments. Santander, UniCredit and UBS are just a few of the companies that use blockchain to send and receive money as it’s quicker and cheaper than traditional money transfer methods.
● Distributed cloud storage
○ Any user that has the proper decryption code and an internet connection can access information stored in the blockchain. With its security and reliability giving it a leg-up on other cloud storage platforms.
● Digital identity and signatures
○ As a more secure alternative to traditional passwords, blockchain confirms an individual’s identification through unique digital signatures and cryptography key. Online accounts, e-residencies, passports and birth certificates are some of the services that could benefit from the extra security provided by blockchain.