Most people use Blockchain and Bitcoin interchangeably, and it is understandable since cryptocurrency has been the most popular use case of Blockchain technology ever since its inception.
As time has progressed, we have realized that Blockchain’s application extends far beyond just cryptocurrency. In fact, it can be deployed in almost every industry that uses trust to form agreements between two or more entities.
With startups being set up by ambitious and young entrepreneurs at exponential rates, it is getting increasingly evident that the existing systems in use cannot handle the inflow of so many contracts and large volumes of data without someone’s trust getting breached. With the introduction of Blockchain, many of these businesses are looking to streamline their systems by breaking free from the traditional centralized systems.
Here are a few Blockchain applications that will transform the way one looks at and runs their day-to-day businesses.
1. Cloud Storage
Up until now, cloud storage has been largely controlled by a handful of powerful corporations that rent out their own storage space; this is a prime example of centralized data storage.
Offering exactly the opposite solution to the storage problem is one company named Storj. Storj ingeniously uses blockchain to make decentralized cloud storage work. Instead of renting out storage on a centralized server, all the computers in the company’s Blockchain use each other’s unused hard disk space to keep data- much like renting out an unused room of one’s house. Granted, the technology is still in its nascent stage, but the opportunities for cost reduction and internal security are unprecedented.
2. Employee Compensation and Bonuses
Calculation of compensation and bonus packages has traditionally been a long, complicated, and time-consuming process. For overseas employees, the dynamic exchange rates and the transferring fees from banks in different countries also make the process a costly one for corporations.
Incorporating Bitcoin into the system eradicates the need for an intermediary in this process. The underlying Blockchain technology also ensures easy tracking of its finances throughout the transfers across the world.
3. Smart Contracts
Smart Contracts are computer protocols intended to digitally facilitate, verify, or enforce the negotiation or performance. In layman’s terms, they work like a ticket machine, where the person who inserts money into the machine can trust that his ticket will be produced if the payment is made.
Smart Contracts remove the need for third parties to enforce contracts, thus significantly reducing transaction costs. This also brings us to the topic of native tokens that can be used in an internal network to grant ownership, pay for work, transmit data, and almost any other way that the company can design to use as a token of trust.
4. Background Checks
Companies have traditionally outsourced background checks for new employees to third-party companies specialize in this field.
Unfortunately, this leaves room for human error as everything from names, addresses, past experiences have to be checked manually. As a better alternative to this long and expensive process, Blockchain offers businesses a decentralized and comprehensive system of employee records that can be accessed instantly. The records are also reliable and up to date, leaving very little room for error. This also relinquishes the company’s need to approach third parties to carry out background checks, bringing down costs.
These are some of the most useful and cost-effective ways to address centralized systems’ current issues by incorporating Blockchain into their businesses.
As more and more companies join the system, it only adds more security layers in the system, integrating data while keeping it decentralized and free from misuse.