What every business should know about Blockchain

If you keep your ear to the ground for innovations poised to transform the business world, you’ve probably heard of blockchain technology. But if you’re not quite sure what blockchain is or how it can benefit your business, you’re in the right place.

What is blockchain?

Blockchain is a digital ledger technology that enables secure, transparent and manipulation-proof transactions. Blockchain creates inherent trust because it groups data into encrypted blocks that are very difficult to change without also changing all subsequent blocks.

Unlike traditional databases, blockchain is not controlled by a single authority. It is a decentralized system distributed in a peer-to-peer network, which makes it resistant to censorship and fraud.

Blockchain has the potential to replace outdated business models and intermediaries across various industries, including healthcare, supply chain, identity management, financial services and energy. But in many cases, blockchain can be integrated with existing systems to increase efficiency, security and transparency.

Why is blockchain relevant for your company?

The business is built on reliable relationships with customers and suppliers. The smooth flow of reliable information between people is the lifeblood of these relationships. Blockchain is relevant to your business because it builds trust with a speed and transparency no other technology has ever offered.

What should you know about blockchain?

It is important to understand that blockchain’s widespread use is inevitable, thanks to the synergy with artificial intelligence (AI). Each technology makes the other more functional. Businesses are already using the two technologies to streamline processes, predict outcomes and resolve disputes.

“Blockchain drives efficiency and trust without an intermediary involved,” said Vantage Bank President, Jeff Sinnott. “You can use blockchain to manage service level agreements in your contracts, for example. But you need AI to optimize the business logic and responses related to smart contracts. Then you have a fully automated solution with complete transparency and traceability.”

How should you prepare for blockchain?

Here are three actions you can take today to stay competitive as blockchain evolves.

1. Identify opportunities where blockchain can better serve your customers.

Think of a pressing problem your business is facing. Blockchain can help you securely share records, cut transaction fees, bring transparency to your supply chain, and streamline contracts, accounting, and audits.

2. Manage employee expectations.

“Your teams should understand that blockchain should not be a threat to replace them. Blockchain will increase their productivity, create more value for customers, and ultimately make their jobs more interesting and the company better,” Sinnott said.

3. Engage with others in your industry.

Attend conferences, talk to other businesses about their use of blockchain, and look into a specialized blockchain vendor to understand the solutions it offers.

What should your bank do?

Your bank should understand the efficiencies blockchain brings to credit risk assessment, customer relationship management, account security and international payments so it can pass these benefits on to you.

“If you want to scale your business, blockchain will help you scale much more efficiently,” Sinnott said. “And your bank should be a knowledgeable, trusted partner in this effort.”

Learn more about blockchain and other new trends at Vantage Innovationpp.