Blockchain is being slowly but surely implemented in real-world solutions to help companies improve business metrics, security or create entirely new products to gain a competitive advantage.
Why companies use blockchain?
Blockchain is a chain of blocks that contain data stored on multiple computers or nodes of the network. This decentralization aspect allows blockchain to provide a substantial advantage when it comes to safety and transparency.
Simply put, it is almost impossible to hack a blockchain or to alter the data recorded in the blocks, as in most cases, every node of the network holds a complete copy of the entire blockchain. A hacker would need to launch an attack on thousands of computers at the same time to compromise a blockchain.
This makes the technology especially attractive for companies that deal with sensitive data, such as personal IDs or healthcare information, and for companies that require greater transparency when it comes to financial operations or supply chains.
Blockchain can even be used to prove the authenticity of goods when combined with real-world hardware such as NFC chips. In fact, multiple companies are developing solutions to allow customers to check the authenticity of products with a simple phone tap.
Blockchain and ICOs
Another benefit of blockchain is that it allows building whole ecosystems with a tokenized economy. Essentially, a company issues tokens that are being sold to investors during an ICO stage. When the product launches, those tokens can be used to purchase goods or services of the company and can be traded on various cryptocurrency exchanges.
Tokens with high liquidity that are actively used for purchases grow in value. Some mechanisms allow boosting the value growth, for example, as tokens are being used as an internal currency, part of a commission can be burned with every transaction slowly reducing the supply. If the demand stays at the same level or grows while the supply decreases, the value of tokens rises.
This creates a whole micro-economy on a single-project scale that can significantly boost the market capitalization of the company.
Companies that already use blockchain
Below is the list the hottest major companies of 2018 that are already using blockchain powered solutions composed by Yahoo Finance:
- Global Blockchain Technologies
- Bank of America