How Various Business Sectors Are Affected By Blockchain?

Blockchain technology has seriously and for a long time come into our lives -there is no doubt about it. But the majority still perceive the blockchain through the prism of cryptocurrency and ICO, and thus other technological advantages fade into the background and become unclear to people and businesses. The company’s size is not a limitation for the use of blockchain in business.

Business solutions on the blockchain can significantly reduce and even eliminate certain standard process procedures, which naturally only have a positive impact on business models and revenue. However, it is important to bear in mind that the blockchain is not a tool to solve all problems. Blockchain and blockchain development provides a set of tools that enable you to conduct business and invest more efficiently. It therefore plays a decisive role in whose hands are these tools and how they are used in practice.

The blockchain is developing in three directions with regard to business today. The first concerns the classic big companies. Such companies carry out their activities with blockchain tools. In their activities, they adopt blockchain tools that gradually adapt to their entire business model, but these companies remain centralized in essence. This results in a hybrid system that balances centralization with decentralization.

Blockchain is a practical means of achieving certain goals for such companies in its pure form. The use of blockchain tools is extremely advantageous for large companies. This enables them to reduce operating costs and time significantly in order to obtain and process the necessary information, as well as to increase the transparency, efficiency and traceability of certain actions and steps.

The second direction associated with the interaction between the blockchain and business is the emergence from scratch of fully decentralized platforms in which everyone can carry out business activities.

The key differences between conventional and decentralized applications must be mentioned here -the latter is much more security and transparency. All actions are carried out in a decentralized application using intelligent contracts that cannot be retroactively falsified or changed. Transactions in intelligent contracts are automatically closed once all the conditions of the transaction are fulfilled on both sides.

We therefore observe the emergence of three main business models using the blockchain:

The use of ready-made blockchain solutions by traditional companies without any changes to their own structure- such companies use ready-made blockchain solutions from the outside or hire contractors through decentralized business platforms;

The use of blockchain solutions developed by traditional companies or jointly developed with someone-these companies remain centralized, changing only part of the management and business processes that directly affect the use of blockchain tools.

Completely decentralized business platforms where everyone can become a goods and services provider.

Nothing special is the fact that big companies are implementing solutions on the blockchain. More importantly, blockchain tools are generally accessible, easy to use and do not require excessive investment and are therefore ideal for small and medium-sized enterprise development. This has already been realized by many small and medium-sized companies.