In today’s business world, blockchain is becoming a fundamental tool that your business can use to secure your products. Blockchain’s position in businesses is just like a laptop compared to a paper. Both laptop and paper can be used for documentation, but the laptop is faster, more secure, more convenient, more accessible, and allows room for better collaboration. However, blockchain is one step ahead, it’s not owned or governed by any specific person. It is decentralized!
Blockchain is a type of distributed ledger that records transactions between two parties securely without any intermediaries. When a transaction is executed, the record of the transaction is sent to everyone in the network, allowing the database to exist across multiple locations and multiple participants. In other words, it is a decentralized, self-maintained, fast, affordable, and transparent recording system.
Blockchain can record anything, it could be a tangible asset such as a house, cash, car, and it could also be intangible, such as a painting or a tweet! If you have heard about NFT that allows a person to sell the ownership of his or her arts, just for your info, it uses blockchain. Basically, anything that has a value can be tracked and traded on a blockchain system.
If you’re not from the IT industry, this article explained blockchain in layman terms.
Blockchain for Business
Image source: inc.com
Implementing blockchain in your business means allowing your team members or clients to record or view the same information, which leads to efficiency, trust-building, and less friction between each other. Blockchain delivers these benefits based on these four attributes unique to the technology:
Shared ledgers are updated only after the transaction is cryptographically validated by all relevant participants involved.
When an event is recorded, copies of the records are automatically created for the participants in the channel. Every single partner shares and sees the transactions.
In blockchain, more blocks can be added but once added, they cannot be removed. Hence, there’s a permanent record of every transaction which attracts trust from team members and stakeholders.
In a private blockchain, only the authorized entities have access and are allowed to create blocks. That being said, random people won’t be able to create and access the blocks as they like.
How blockchain can boost your business
Blockchain technology has evolved rapidly since the introduction of bitcoin. Your business can take advantage of blockchain through smart contracts. Originally introduced in 1993, a smart contract is a code stored on a blockchain that works when predetermined conditions are met and verified. Besides, smart contracts too can automate a workflow, triggering the next action when conditions are met.
One of the companies that use blockchain for their business and smart contracts is the gigantic IBM. IBM has been using blockchain which is based on Hyperledger Fabric version 1.0 from the Linux Foundation. IBM’s blockchain is a public cloud that customers can use to build their blockchain network.
Aside from smart contracts, blockchain can enhance security, especially for sensitive and crucial data. Not only records created can’t be altered or changed, but it is also encrypted from end-to-end. This feature made blockchain one of the main tools to prevent fraud and unauthorized activity. It makes it hard for hackers to alter data since information is stored across a network of computers rather than a single server.
Next, greater transparency is one of the ways blockchain can benefit your business. Since blockchain is using a distributed ledger, transactions and data recorded are identical in multiple locations. All network participants who want to access this will see the same information at the same time, which provides full transparency. All the data and transactions are immutability recorded and time and date stamped. You can be assured that there’s no internal traitor making unauthorized transactions behind your back!
Last but not least, blockchain gives instant traceability. Blockchain creates an audit trail that documents the provenance of an asset at every step of its journey. In industries where consumers are concerned about human rights issues surrounding a product, or worried about counterfeiting and fraud, this trail helps to provide the proof. Learn how blockchain help in tracking and tracing your products here.
Blockchain and LuxTag?
All in all, blockchain is indeed a need in your business as it brings a lot of benefits in terms of smart contracts, security, transparency, and traceability. Implementing a blockchain system in your business would also secure your products from being counterfeited and help you in gaining trust from your customers.
Here at LuxTag, we implemented a blockchain system that enables your products to prove your brand’s authenticity, and protect it from counterfeit. BrandTag a SaaS solution allows each of your products to get a unique identity that can be verified no matter where the product is being sold. It helps your customers to verify the authenticity of your product, know about your product history, and be updated with the latest promotions. Learn more about BrandTag here.
Let your product do the work for you.
Combating counterfeiters is exhausting, we get it. That’s why we developed BrandTag. With BrandTag, your products will promote their authenticity and protect themselves from being counterfeited, with just a scan!