Common myths about Blockchain Blockchains are now on everyone's lips. If you read our previous research on this topic, you should understand what the advantages of the technology are and how promising it is. However, only a handful of people are brave enough to start working with it. Why? It can be explained with the prejudices which come to mind every time we hear about Blockchains. It's high time to dot the t's and cross the i's. Let's get over all the myths about Blockchain to understand what blockchain potential applications we can use.
Common beliefs about Blockchains
There is only one Blockchain For those people who have just started figuring out what Blockchain is, it may seem like there is only one unique Blockchain platform. In fact, there are lots of blockchains. Each has its own differences due to the purpose it has to serve. Which means that you can apply blockchain for small business too. For instance, Bitcoin uses public blockchains and half-public platforms which have some access limitations. For the most complicated tasks, there are private systems open only for very few members.
Blockchains are absolutely secure Yes, blockchains were created to provide users with a new level of security because of its distributed structure. Customers tend to believe that the system is impossible to crack. It is not true. There is no 100% secure system in the world. But the fact of hacking will be recorded and it wouldn't go unnoticed.
Blockchain is open for everyone Blockchain is an open database where all members have access to it. It is the basis of Blockchain. But, as we've already mentioned, access can only be given to the stakeholders. Moreover, a private blockchain can be built on top of a public blockchain, providing access only to those users who need it.ere,
Blockchains are only used by criminals This myth is more connected with cryptocurrencies. Bitcoin is considered to be untraceable and therefore is used only on the black market. However, this is not true. As you remember, Blockchain records all actions and no one can delete this data. Along with all that, the transaction can be tracked back once a customer has cashed out cryptocurrency.
Blockchains cannot be used for business Many people simply don't understand what the nature of Blockchains is that's why it is difficult for them to imagine what are blockchain applications. In plain
English, Blockchains were created to protect blocks of data, verify information and record all actions. From this point of view, Blockchain is an irreplaceable technology for any sphere with sensitive data. All these myths prevent us from believing that Blockchain is not only a trend, it is the way we all are going to do business in the nearest future. And the sooner we understand that the better position we can get with our businesses. Now, let's get back to the topic and figure out what real-life blockchain technology applications we can take advantage of.
How to apply Blockchain technology to your business In this block, we wanted to collect only those approaches which you can easily apply to various kinds of business and really benefit from it.
examples of blockchain technology
#1. Payments We all know that blockchains began from cryptocurrency and it is obvious that they work perfectly with payments and money transfers. But why is the use of blockchain so beneficial for small businesses? Fees. It's all about fees that banks charge when you need to pay for something or transfer money to somebody. With the blockchain technology, you don't need to pay to the banks which dramatically cuts your expenses. In the transfer chain, there are no more intermediaries, only you and a person you send your money to. If your business is located in several countries or you have a remote team of employees, Blockchain based business model implementation is a necessary step
#2. Smart contracts This terms appeared about 25 years ago, however, only after the project Ethereum was launched, the smart contracts system became widely publicized. To put it shortly, it is a distributed system that manages all smart contracts. The platform excludes the possibility of delays, suppression or any outside influence. The system provides comprehensive financial security, monitors the terms of the contract and is unbreakable. If in your business you deal with lots of contracts (especially, if you need to sign a contract with every client), Smart contracts are the best solution for you. What can we say if the biggest and the most powerful banks in the world take this system into account?
#3. Distributed storage in the cloud Distributed storage in the cloud. To understand how it works, we need to look at Storj, the company which offers cheap and fast cloud storage. Their system is built around blockchains. The platform helps store more data using the same amount of hardware and saves a tidy sum at the same time. So in case your business operates big data, blockchain is a great opportunity to cut down your expenses.
#4. Digital Identity If you still don't understand why this issue is so urgent, then you need to see the fraud statistics of all internet operations. To tell you the truth, the size of
your company doesn't matter here because fraud happens just as much in big companies as it does in the small ones. With the help of blockchain technology, it is much easier to track and monitor digital identities. And the best thing it does is identity authentication, where blockchains are needed to secure the whole procedure. While the usual authentication methods use the system based on passwords, the blockchain system only checks whether there was a correct private key.
#5. Notary You may not believe this fact but blockchain can work as a cheap notary system. Blockchains are able to provide evidence of existence, ownership and validate the identity of sets of data. What blockchain can also do is generate prior art or certify the ownership of any type of data. Believe me, it is a very cheap method, unlike the usual one which will cough up the cash for you. For instance, to certify a document in Europe, you'll have to pay more than 200 euros. With the blockchain platform, you'll spend 0.2 euros. And if you deal with such certificates, this blockchain business idea will help you stay afloat.
#6. Gifts and discounts These steps are inevitable if your business is connected with the e-commerce sphere. Various loyalty programs help you engage customers and show them your care. And, again, blockchains can help us avoid different types of scams and create unique certificates which would be easy to verify.
#7. IoT systems IoT devices collect megatonnes of data to learn how you behave, what you like, how you live and so on. All this information needs to be processed and stored. And blockchains fit these criteria the best. We can explain it with two facts. Firstly, blockchain can communicate with all your devices simultaneously. And secondly, it saves lots of money because it eliminates the central hub and acts as a bridge between all IoT devices.