In today’s technology-saturated world, businesses face some tough decisions. What technologies will yield the greatest ROI? What business solutions are most pertinent to our company and customers? What technology initiative will help us stay relevant and competitive?
While such questions are difficult to answer regardless of circumstances, they become complicated by the fact that businesses are operating in a landscape that evolves and changes on a near daily basis. Determining which technology solutions will provide the most value in the long term has never been harder, and is forcing organizations to plan their investments carefully.
One new technology producing revolutionary results for companies is blockchain. The relatively new technology is being adopted across many industries and those embracing it are gaining a competitive edge. For example, Danish shipping giant Maersk is poised to save $38 billion annually by digitizing it’s supply chain with blockchain technology. And blockchain news site Ledger Insights estimates the technology could save the trucking industry $800 million annually.
There’s currently a lot of buzz surrounding blockchain, but when it comes to taking advantage of this new innovation, businesses can become especially overwhelmed. So, how do you know if blockchain is a good investment for your business? Here are four things to consider:
Due to it’s decentralized nature, blockchain is an exceptionally secure technology. Information housed on a blockchain system is stored in blocks. These blocks are linked so no individual block can be altered without changing each block in the chain. Since the blocks are decentralized, the information stored within them is virtually incorruptible. For this reason, blockchain is uniquely suited for storing sensitive data. The system is less vulnerable to attacks by hackers and internal corruption.
The decentralized nature of blockchain technology has other benefits as well. With blockchain, companies don’t have to rely on physical infrastructure to meet their data storage needs. This gives companies more flexibility because the blockchain system can be scaled to meet their individual needs. They don’t have to invest in a certain amount of storage up front. Decentralization also protects companies from outages by ensuring that one breakdown doesn’t effect the entire chain.
One of the reasons blockchain is so secure is because it’s highly automated. Transactions made on the blockchain are automatic, which makes this technology especially suited to executing contracts. Known as smart contracts, transactions made on the blockchain eliminate the need for a middle man. Goods, services and funds can be exchanged automatically as long as both parties agree to the terms. In addition to simplifying agreements, smart contracts can also help companies save money by reducing the fees usually paid to a third party to execute a contract or transaction.
It’s important to remember that blockchain is still a relatively new technology. The stability of blockchain networks has yet to be tested on a large scale. Reports indicate that blockchain remains slower than other processing systems and shortcomings have been found when processing a high volume of transactions. Experts predict transaction processing speeds will increase as more companies adopt blockchain technology. And like any new technology, performance is likely to increase as more people work to hone and perfect blockchain.
Treehouse Technology Group is helping companies tap into the power of blockchain. We’ve worked with several companies to develop blockchain solutions tailored to their individual parameters. If you’re interested in revolutionizing your company with blockchain and want to work with a company with a successful track record, contact TTG for a free consultation. We specialize in helping companies develop robust solutions best suited for their specific business needs.