Many know about blockchain because of crypto, but in recent years, we’ve witnessed many more applications in various industries. Blockchain has the potential to provide benefits in different spheres. In this article, you will learn about blockchain and how to implement it in your business with our blockchain development tutorial.
Blockchain is a distributed ledger with a database that contains information about all the transactions made between the parties which are participants in a process. The data included in the blockchain is secure since the chains are not stored on any particular service but exist on all computers connected to the network. The main feature of blockchain technology is that transactions are carried out without the participation of intermediaries, such as banks, in financial transactions. This implies a number of advantages that are very beneficial for businesses in various industries.
Blockchain principles are:
You can get started with blockchain and use it as a technological backbone of your business. The implementation of blockchain technology will help you solve many problems in your company.
The most popular platforms are:
• Ethereum. It is one of the most commonly used blockchain platforms with a developed infrastructure for creating smart contracts and developing decentralized applications.
• Hyperledger Fabric. It is a promising platform for developing enterprise-oriented blockchain solutions. It appeared with the support of IBM and currently does not have its own cryptocurrency.
• Cardano. It is a new type of active blockchain platform. The key difference from other platforms is that Cardano has a separation of computing layers: the first layer is designed to work with the internal ADA cryptocurrency and the second one is for creating and processing smart contracts.
The choice of platform depends on the complexity and purpose of the solution.
Many industries have found it beneficial to use blockchain technology. Here are several examples.
The financial sector. This industry has become a pioneer in the use of blockchain. The idea of cryptocurrency transactions between wallets is easily transferred to the banking system. Blockchain-based cross-border money transfers take minutes, while through the SWIFT international payment system, the transaction usually takes up to three business days, especially if there are no correspondent relations between the sender and recipient banks. Blockchain can be used both to verify customers and, in the future, to report to regulators.
A consortium of European banks led by Switzerland’s UBS has launched a blockchain platform. EU banks are assigning a 20-digit identifier containing all information about the company to each legal entity in a distributed ledger on the platform. With the technology powered by blockchain, each entry is undeniable but can be updated with the next entry. The entire history of a particular company and operations with its participation is also visible in the chain.
Logistics. Blockchain technology has provided many benefits in logistics. The participants can use special software that records all transactions in the chain at each stage of the transportation of goods. A warehouse or customs officer, as well as the recipient of the goods, confirms the fact of delivery and acceptance of the goods with their unique signature. Each participant in the process has a private key that allows them to identify senders and recipients. Blockchain makes it impossible to capture cargo by transferring it to another person.
Large companies like DHL, together with the consulting company Accenture, have developed a drug supply chain tracking system. According to this system, every product is assigned a unique serial number, which records every step from its production to purchase. The distributed database shows that the medicine came from the manufacturer and is not fake.
Real estate. In the real estate sector, blockchain technology can be beneficial at all stages of fundraising. Within a short period of time, blockchain can be applied in real estate transactions when transferring the purchase price of real estate. It can be safely done by using established cryptocurrencies, as well as through ICO - initial coin offering (tokenization). The first such experiments have already been observed on the market. For example, Sweden is working with a digital cadastral register based on blockchain technology.
Another value of blockchain technology in real estate is the implementation of smart contracts. These are electronic contracts based on a computer protocol that can track the fulfillment of conditions or rules indicated in the system and perform specified actions in accordance with the triggering event. Thus, there is no need to conclude additional agreements in writing on paper.
In the long term, blockchain can help to significantly increase real estate market transparency and resolve issues related to the relationship between principal and agent.
The price of blockchain implementation may vary. It depends on such factors:
CPI Tech will provide the most optimal solution for your project, depending on its scope and objectives. Book a free consultation with our digital technology experts to get an estimation of the development cost of your specific project.
Blockchain technology is a useful tool for various business industries. Developing a Blockchain-based platform is a complex process that requires a professional approach to identify how the technology can solve the business issues, define the platform for blockchain development, conduct ideation and proof-of-concept, create the necessary tools and analyze the functionality of the solution.
CPI tech knows how to use blockchain technology to your best advantage. Our team of blockchain experts will implement visionary software solutions in your project.
Contact us to discuss the details of blockchain platform development to power your business!