Most people don’t know much about blockchain technology beyond the fact that it has something to do with the ever-fluctuating value of cryptocurrencies. But this technology offers so much more than a potential cash cow, especially when it comes to business security. In its most basic state, blockchain technology is an information and transaction processing protocol. This groundbreaking technology is being harnessed by smart contract services and developers, paving the way for secure business solutions.
There are a number of ways that a blockchain developer can utilize the technology to benefit all kinds of businesses.
Smart contract services provide enhanced speed and verification, as well as security and processing power for all types of transactions. Nowadays, large corporations and startups alike are utilizing smart contract services through decentralized applications (dApps) to stay ahead of the curve and protect the customer, as well as the company itself.
dApps are applications that runs on a decentralized network, using a peer-to-peer network such as Ethereum to operate. The difference between dApps and standardized apps is that the backend servers of dApps utilize blockchain technology instead of servers that use programming languages.
How Major Companies and Tech Startups Utilize Smart Contract Services
While blockchain technology is a new phenomenon in the world of business, some of the largest corporations are already providing these security solutions to clients. For instance, major tech giants like IBM and Microsoft are currently offering blockchain solutions to enterprise clients.
As blockchain technology continues to blossom into a highly coveted business security solution, there are also a wide range of tech startups that are capitalizing on dApps by developing products or services that depend on blockchain. In 2017, blockchain startups garnered nearly $4 billion in funding through the sale of tokens. In 2018 so far, that number has already surpassed 2017 with just under $6 billion raised, showcasing exponential growth for ICOs. As this trend continues to gain steam, it will help more businesses jumpstart their migration to the blockchain.
How Blockchain Can Impact Everyday Businesses
Not every business is a tech corporation or startup that’s eager to adopt blockchain technology, yet there are several real-world examples of blockchain integration in the agriculture, real estate, and healthcare sectors, just to name a few. For these types of industries, smart contract services can offer increased security, efficiency and transparency.
This is a major driving force behind the increased adoption of smart contract platforms, which enable businesses to accept cryptocurrencies and smart contracts in a cost-efficient way. By using these secure platforms, companies face minimal risk of legal or operational complications, as companies can develop and oversee their own smart contracts and payment processing.
There are a variety of concrete examples of how dApps are being used to create secure business solutions. One advantage of deploying blockchain technology is increased protections around online consumer data, reducing the growing threats on digital security. For instance, the startup KYC-Chain utilizes Ethereum to keep the identity of new customers safe through simple identification processes and regulations.
The growing crowdfunding space can also benefit from smart contract services, as they can provide personalized solutions to backers. By offering this high degree of customization, individuals are able to contribute more to development, while also promoting transparency and strict adherence to the boundaries of individualized contracts.
Since the Ethereum network promotes complete decentralization, dApps can create a more democratic system for businesses, giving each contractor access to updates and new initiatives. In turn, this also enables opportunities to construct a global workforce. Additionally, through smart contract services, businesses are able to simplify management of globally distributed workforce.
One example of this is the platform Colony, an “open organization” infrastructure that uses Ethereum to encourage people to invest time, expertise, and personal ideas into global projects. Through Stripe, Colony is able to conduct automated cryptocurrency transactions and ensure equal compensation across global workforces.
Using smart contracts through dApps also provide businesses with improved access to financial developments, especially those in developing economies. By eliminating intermediaries, business are able to do away with complicated remittance processes, online payment fees, and currency exchanges.
Your Business Can Benefit from Smart Contract Services Too
When a business decides to integrate smart contracts into its daily operations, the value of these security solutions becomes readily apparent. No matter the industry, smart contract services enable companies to achieve quick agreement verification, improved business relations with clients, and the ability to streamline contractual and legal matters in a safe environment using cryptocurrency transactions.
Blockchain technology can positively impact businesses of all shapes and sizes, but it’s critical that the company be prepared to adapt to the way that smart contracts will change operations. Therefore, businesses must carefully plan and strategize for the implementation of smart contracts. This is where blockchain solution providers can be an immense help in streamlining the transition into this new technology.
For example, Fueled offers dApp development services that are tailored toward creating aesthetically pleasing products that solve problems and generate a larger customer base. The Fueled dApp development team will help transform your product or service from a white paper concept to a fully actualized business, handling user testing, ICO funding, marketing strategies and more.
Tyler Koslow: Based in Brooklyn, Tyler has worked as an editor and writer for publications and articles related to business, music, and technology.
Agustin Sanchez: True North’s Country Director, was previously Head of Engineering and has led engineering teams of 50. He has a passion for blockchain and next-generation FinTech.