Blockchain Technology in Business

Blockchain: An overview and its role in the digital transformation of businesses

In recent years, the term ‘blockchain’ has become increasingly familiar. The future of blockchain raises many questions. People associate blockchain with cryptocurrencies, but that’s not the whole story. In fact, the other major use cases of blockchain aren’t much explored. Many companies are currently considering blockchain to transform their business operations. Many advantages make this technology valuable for businesses. Let’s dive into the main points related to blockchain technology and its role in digital transformation.

What is Blockchain?

Blockchain is a distributed database that allows users to create and maintain secure transactions across multiple computers. In other words, a blockchain is a distributed ledger shared across a network. The structure of data in a blockchain is entirely different from that of traditional databases. In a blockchain, data is stored as blocks that are linked together as chains. This unique feature of blockchain provides security and safety without the involvement of a third party. 

Blockchain: How does it work?

A block of data is created whenever a transaction is made on a blockchain. Each block is connected to its preceding and succeeding blocks. Blockchain blocks contain cryptographic hash points as well as transactions from previous blocks. It is not possible to modify data stored in a blockchain. Once a block has been created, it can never be altered without changing all previous blocks. This property makes blockchain ideal for applications requiring transaction security and immutability.

The future of blockchain in digital transformation

Blockchain has gained momentum in recent years, considering its transactional transparency. The use of blockchain in cryptosystems like Bitcoin has popularized the technology. The most appealing feature of blockchain technology is that transactions can be conducted without involving third parties. Despite the challenges, the current scenario shows no signs of slowing down. In fact, the blockchain trend could evolve more rapidly in the future. 

Blockchain technology is being used by businesses in several domains mainly to ensure the security of their functionalities like: 

Identity management: Organizations can use blockchain technology to track user identities and interactions.

Records management: Blockchains offer organizations a way to store and manage records more effectively.

Conflict resolution: Blockchain technology can help resolve disputes more quickly and effectively.

Anti-corruption: Blockchain can help to prevent corruption from occurring with its attributes like high-level security and authenticity.

Is blockchain a good option for digital transformations for businesses?

The use of blockchain in digital transformation can be beneficial for businesses for a variety of reasons. Let’s see the most important among them: 

Cost savings: Businesses implementing blockchain technologies save on processing, storage, and data handling expenses.

Security of information and data: Blockchain technology prevents unauthorized access to data and information.

Transparency: All participants must agree on any changes or deletions of data. This characteristic of blockchain technology may contribute to increased data transparency.

To conclude

The blockchain industry is seen to be getting more significant day by day. The capability of the technology is not just limited to cryptocurrencies and bitcoin. It can support applications related to finance, manufacturing, and several other similar industries. There are many benefits to using blockchain in digital transformations. It reduces costs, increases security, and provides transparency. If you consider using blockchain in your business’s digital transformation, it will definitely pave the way for many futuristic developments in your business.

The Impact of Globalisation on World Economy

Globalisation isn’t something that started yesterday; infact, it has been existing ever since humans started moving from one place to another in the world. With that said, globalisation has become rapid recently, and it has become global advancement all thanks to technological growth that has facilitated the increase of globalisation around the world.

It is no hidden fact that globalisation has had an impact on almost all parts of modern life, most notably in regards to the global economy.

Put simply, globalisation is seen as the phenomenon which aims to increase business operations on a global scale, and it is facilitated by technological, political, and environmental advancements which create a favorable platform worldwide. The impacts of globalisation on the world economy is quite evident when it comes to buying and selling. Take, for instance, in the US, close to 36 percent of all shoes, and clothing is made in China, with only about 4 percent made within the shores of the country.

Impacts of Globalisation

Increased competition

When there are multiple producers competing for a stake in the economy, it is always a positive sign for consumers, as such competition will bring about the production and delivery of quality goods and services. This means better products at a competitive price.

Foreign direct investment

Globalization leads to more foreign direct investment. Since trade among different economies occurs at a more favorable rate, FDI tends to increase and benefit from it.

Technology development

One of the by-products of globalisation is an increase in competition, and competition doesn’t just bring out the best in people, it also brings out the best in nations as well. Improved competition as a result of globalisation helps to bring about technological innovation, most especially when there is an increase in foreign direct investment — all of these help to enhance economic output via efficient processes and method of production.

If you ask most economists about the impact of globalisation on the world economy, they will echo the same thing that it offers a massive benefit to economies in the world. It achieves this by creating a more efficient market, enhancing competition amongst individual economies, and facilitating an increase in wealth among economies in the world.

Yes, globalisation might look like a costly venture, but the long-term benefits, and sometimes the short-term benefits are essential to economic growth. This is part of the reason why the consensus among economies is that globalisation is beneficial to individual economies in the world, and as such, it should be welcomed by individuals, businesses, corporations, and government as a whole.

Positive effects of Globalisation

  • Free trade opportunities between countries help avoid business complications. Moreover, this effort supports economic growth in developing countries.
  • Knowledge sharing and technology transfer between nations have become easier.
  • Localisation opportunities provide direct benefits for developing countries to scale technology rapidly.
  • Mix/Match high-cost country units and new economy units to control the cost of goods/services and directly benefit the end customer.
  • Helping developed countries to continue to focus and invest in research, technology development and innovation.
  • Precise and specific responsibility matrices between developed and developing countries fetch long-term benefits. 

Negative effects of Globalisation

  • Employment threats to developed countries over skilled and unskilled resources.
  • Manufacture of harmful products by developing countries that do not support the environment. (e.g. products such as leather, castings, batteries, surface treatments, etc.)
  • The quality level of products and services will always be a difficult issue that developing countries will have to deal with until they reach the required maturity level. 
  • Cultural differences among countries working together on globalisation.
  • Changes in foreign exchange, national policies and regulations affecting globalisation goals.

Bottom line?

Globalisation has had its impact not just on individual economies around the world, but also on lives, businesses, and corporations. Its impact on a global scale has led most economists to agree that it is beneficial to the world economy.