The new currency system Blockchain, operates virtually and is sourced through digital data encryption technology and is being facilitated as cryptocurrency to allow users to own, procure and transact all-pervasive money digitally. The idea of cryptocurrency is brought to the public domain and is facilitated to be used socially with the help of the Blockchain technology – and this is penetrating fast to allow people across the world deal securely and smoothly in the digitally driven economy.

To that effect, the reach of Bitcoins is expanding at a high pace and it is steadily shifting beyond just being a currency and is becoming more of a transactional system that induces more trust and ease among financial facilities, organizations and people.

Now, what makes Bitcoin mark its eminence and play such a role in the currency affairs and how it is growing so big to contribute to the digital economy. And for that matter, how Blockchain is making it grow so big to be a part of the mainstream financial system.

Everything that we need to know about the growing influence and character of Bitcoin in the modern economy, can be depicted through its technology counterpart, that is Blockchain. And knowing how Blockchain works should reveal all about it.

A smart ledger in action

What do you visualize when you hear the word ledger. Maybe an Excel spreadsheet. Blockchain is just like that sheet, but with a lot of functional and security perspectives attached to it. You can call it a smart ledger responding to the new world economic and transactional needs. Now, what are the key differences and opportunities that Blockchain puts across?

First of all, Blockchain is unchangeable – you can’t replace or tweak the data with any other values or details. Only new data such as credits to offset debits can be added to it. Which makes it highly reliable from the perspective of use and maintenance.

Secondly, the Blockchain platform is cryptographically secured and puts up with multiple layers of security and it’s hard to crack it. This makes it highly reliable as data leaks or maligning is the least issue with it.

Next best thing about Blockchain technology is, it puts up with a mechanism referred as consensus algorithm which takes mutual consensus of the spreadsheet users to determine what to be placed where.

On the top of this all, it provides smart contracts. Now, these smart contracts are representation of business processes in the form of codes. This allows the data to be attested and validated from different perspectives and ascertains the credibility and maintains the quality of information. This helps organizations build attestable processes.

Focused on business and society goals

Blockchain brings the whole functional channel of a business together to work closely. This is how it connects businesses and the people in and around it seamlessly to allow it to capture information and serve the purpose and goals of the entire entity at large, across the supply chain.

Suppose you are manufacturing a range of sweet candies. You would require raw material and basic ingredients to be procured from the source location. Now, these would be sent to the production facility with the help of loading units and transporters. Once the candies are manufactured these would be checked for quality and passed on to the approved lot. Now, the permitted material need to be packaged and labeled to be sent to the distribution point. Here further, as the product is all ready to be delivered to different manufacturers and retailers. Blockchain facilitates and optimizes the entire process from initiation to execution and from disbursement to payment by capturing the whole event and pooling, collating and processing data across the entire route – to help its stakeholders and users get the best value from it.

Here, a Blockchain can record and process registered attestations for different users including producers, facilitators, transporters, sellers and consumers – to help them commit to optimum processes and sustainable practices – by representing business workflow and establishing consensus among users to meet their goals.

IoT enabled supply chain

Going with the Blockchain technology powered by IoT- the next-generation internet solutions, businesses can have the ability to track data, process information and enforce compliance across supply chain – using the input to further optimize and strengthen their communication, facilitation and decision matrix.

How does it happen practically? Suppose, the ingredients you use for your candies are sensitive to temperature and in high degrees there are more chances of perishability. IoT enabled system would allow you with timely updates on temperature change, sensing local whether conditions and referring to expert predictions.

Further, it could let you depict the flow of action across the channel by referring to the time-taken and efforts made in executing a task through camera-captured events. This data churned out of it can be highly helpful in finding the lags and latencies in the process so that it can be corrected and fixed in time. This way the process can be optimized, and economies of scales can be implemented by sanitizing the process with IoT enabled data.

Also, while the candies are being delivered to different locations, with the help of location trackers the process of transportation and delivery can be optimized and effectively implemented and executed.

Empowering businesses through digital transformation

‘Smart Economy’ is a big-wide phenomenon and it can’t function when things work in isolation. All the resources, energies and efforts should come together and work in a collaborative environment and in a coordinated manner, to serve a bigger, boarder purpose. This is made possible with the help of Blockchain based digital system to pool-in and funnel all the important data and combine different services to produce richer information and seek better results.

With this different functional operators, contributors, and resources can come together and put in parallel efforts to achieve improved result working in a sync. We can already see manufacturers, retailers, bankers, analysts, and support agencies working together, eyeing at better opportunities and outputs. Digitally powered platform offered by Blockchain technology can help them refer to rich data in a dynamic manner and focus on achieving high-quality collaborative results.

In case of a candy business, manufacturers can digitally connect with retailers and users and collect data to find out what’s in demand and what should be done to tap more business further. This can help them in working on new flavors and package their product differently, referring to different data-suggested ideas, opportunities, trends and needs that are prevailing or seem to be hitting in the near future.

End Notes

All this clearly suggests that the Blockchain technology is going to make businesses meet better ways to manage, operate and transact optimally referring to trends and imbibing latest market traits through advanced data support. This should help people and society at large by contributing to the evolving digital needs and this will in turn help in impacting the bottom line and there further accelerating businesses and building smart economy.