Crypto Academy Contest / S4W3 - Understanding Blockchain Technology In Business And Finance by @beckie96830
Hello everyone, a warm welcome to the third week of the 4th season of the steemit challenge. I'm indeed happy to be participating in the challenge series this season. I hope everyone joining is happy to do so too.
The crypto academy community wants participants to discuss Understanding Blockchain Technology In Business And Finance. In this post, I will be responding to the assignment given.
Explain in your own words, how the blockchain can be used in business and finance?
Blockchain Use in Business and Finance
Blockchain and its related technology were introduced by Satoshi Nakamoto in 2009 when the first Bitcoin transaction was manifested on the Bitcoin Blockchain. Ever since this event, the efficiency and security of blockchain technology have been emulated and adopted across multiple areas of our daily lives and across different key sectors, some of which include DeFi transactions, Business, supply chain, Agriculture, healthcare systems, voting systems, Internet of things (IoT), gaming, organizational structures, etc.
No doubt the adoption of Blockchain technology in some of these areas has further improved the benefits and usability of data in such areas as it introduces the concept of decentralization as a primary element in the systems, making them more secure and trustless.
The adoption of Blockchain technology in Business and Finance has greatly improved the way business transactions, contracts, and deals are handled and negotiated, while delivering absolute data security, anonymity, and high efficiency. Some of the ways Blockchain can be used in Businesses and Finance include the following:
1) Improved Security
The security architecture of the business and Finance industry relies solely on technologies developed, managed, and delivered by companies like Interswitch, Stripe, Amazon, Google, Microsoft, etc. This makes it almost impossible to guarantee the security of information generated, used, and accessed by these businesses. The adoption of Blockchain technology will add robust security using encryption and cryptographic function features that ensure that every transaction is properly vetted and validated.
2) Record Transparency
Blockchain-generated data is known to be immutable, this implies that using Blockchain technology in Businesses will ensure a high level of transparency as recorded on-chain transactions can not be manipulated or deleted. Also, every validated on-chain transaction is updated across all connecting nodes, making it impossible for data manipulation.
3) Payment Validation
A Majority of business models involve transactional exchange which would require a means of validation before the transaction can be deemed complete, traditional finance systems rely solely on the intermediate entity to verify the validity of a transaction. For this reason, Blockchain technology uses a series mechanism to process transactions in stages to ensure that the exact quoted amount correlates with the initiated amount.
4) Low Cost and Throughput
The use of Blockchain technology in Business is relatively cheaper than using a traditional system. For instance, using Blockchain technology can allow the management of business information with less equipment than buying and setting dedicated servers for data access security. Also, improved Blockchain technologies like the lightning network used in the Bitcoin network can greatly reduce the time required in processing transactions.
Explain in you own words the applications of blockchain in business and finance?
Blockchain Application in Business And Finance
There are several notable applications of Blockchain technology in business and finance, some of which include the following:
1) Ledger Management
Blockchain technology is applicable in online ledger management systems like financial account statements, company accounts records, transaction history, payroll, etc. where reliable and trusted information has high priority. With the adoption of Blockchain in such systems, the security and immutability of stored information are guaranteed, thus maintaining perfect business records and transparency.
2) Data Interoperability Systems
Blockchain technology is also applicable in systems that require Interoperability of generated data across multiple sections like in the healthcare industry. Implementing and using Blockchain technology in healthcare systems rely on the interoperability of generated data by healthcare organizations. This results from how generated data is stored on-chain, such that nodes (health personnel) can easily access, investigate and verify the on-chain patient's data regardless of the organizational level without altering previous records and medical history.
3) Supply Chain Management
Blockchain technology is applicable in supply chain management systems as it has the ability to keep track of multiple transactions concurrently and secured. This is mostly adopted in transport systems which ensures that logistics transactions are handled efficiently with data alteration.
Blockchain-based games have created the opportunity for gamers to earn a token reward for playing games, and collect valuable in-game collectibles that can be traded with other gamers, this is achieved by the use of NFT technology. Another standout feature of Blockchain-based games is their decentralized nature, this enables gamers to own in-game tokens, and collectibles without alteration from the host company (game developers).
What is the goal of blockchain applications in finance and business and how does cryptocurrency affect business?
Goal of Blockchain Applications in Business and Finance
I think the primary goal of Blockchain Applications in business is to improve on the faults of the existing system and eradicate the intermediary entities established between businesses. The adoption of Blockchain in multiple areas has greatly improved the operation and adaptation of such fields. This creates and promotes a better enabling business environment built with robust security and trustless based operation.
Blocking has no doubt created an avenue for an individual to earn from previously untapped industries like gaming. Highlighting the application of Blockchain in gaming, the previous gaming ecosystem before the advent of Blockchain-based gaming systems is a large centralized system with a lot of subscribers, that barely reward users except through hosting online gaming competitions, and the use of a third-party platforms like Twitch and YouTube streams. But Blockchain changed this, allowing gamers to monetize their hustle.
Cryptocurrency and Business
Cryptocurrency is the primary element that utilizes the Blockchain consistently. Ideally, the advent of cryptocurrency has positively impacted many businesses as it strives to improve inclusivity and wide acceptance in finance, through monetization of new untapped sectors and the creation of millionaires from crypto trading.
Utility crypto tokens have greatly impacted business dealing as it creates an alternative to the traditional fiat currency making it easier to handle business transaction easier and efficiently. While cryptocurrency has championed many feats, it also lead to the creation of other tokenized businesses like Non-Fungible Tokens (NFT) which has created a wide array of business models ranging from exchanges, trading, etc.
What is the future of cryptocurrency in business and finance sector. Also give some examples of blockchain applications that are being used in business and finance?
Future of Cryptocurrency in Business and Finance
The future of Cryptocurrency in business is still in its development phase as the technology is yet to be adopted by a majority of large institutions like banks, governments, etc. But I must say that Blockchain technology has a bright future. Taking a sample size of the performance of Cryptocurrency and Blockchain technology in sensitive areas like DeFi transactions, gaming, and healthcare systems, it's safe to say that the technology has proved to be of great importance and strategic in delivering what is required.
I'd say that Blockchain technology is by far one of the most unique discoveries of the 21st century, and I believe the future of Cryptocurrency and Blockchain technology in business and finance will further improve the sector if given the chance by big business and large corporations across multiple sectors.
Blockchain Applications Used in Business and Finance
There are some notable Blockchain Applications Used in business and finance, some of which include the following:
1) DeFi Applications
The adoption of Blockchain technology in finance is the most crowned achievement of Blockchain technology as it provided an alternative way of handling financial transactions through cryptocurrencies. The ideology of cryptocurrency and its related technology was created to combat the effects and drawbacks of a centralized finance system which is controlled by governments and central banks that bring about financial control, regulations, manipulations, and a trust-based system.
The cryptocurrency ecosystem has grown tremendously in recent years, with an estimated value of over $1 Trillion worth in transactions and holdings across multiple exchanges and crypto-wallets. This speaks to the wide acceptance of cryptocurrency and its technology. Though the growth hasn't been easy, centralized systems move to impose regulations and control on the decentralized asset class. Another deterring issue is that of theft and scam, as dubious individuals create various means and avenues to steal from inexperienced individuals using the system.
Filament is a Blockchain project created in 2012 that has championed the growth and synergy between Blockchain technology and IoT. Filament as a business creates hardware and software enterprise solutions using Blockchain for IoT devices. This is achieved through the creation of their embedded products (development blocklets) that support the use of blockchain technology within the Internet of Things (IoT) network, where IoT data transactions are generated and managed without experiencing the problems of delayed process time, and data security
Blockchain technology has no doubt improved the day-to-day affairs of business activities, as its adoption across multiple business sectors ensures improved security and efficiency of the adopting system. Though some sectors like the healthcare sector are yet to fully embrace blockchain technology and its benefits. The limitations of the current healthcare system create problems of data inconsistency, insecurity, reduced integrity, and a trust-based system. But with the introduction and adoption of blockchain technology in the healthcare ecosystem, data security and interoperability are guaranteed through the use of cryptographic algorithms and decentralization of on-chain data.
Thanks for reading!