How Promising is Blockchain for Business? By TNTMAX: IT Services NJ

 

Ever wonder if there is an easier way to complete transactions without having to deal with online wallets, banks and third-party applications? Well, it is possible – and all thanks to blockchain.

Imagine 4 friends – Jack, Sam, Ted and Phil – meet up for dinner and after they are done, Jack pays the bill and all of them decide to split the expense between each other.

Phil sends his share to Jack via online money transfer and the transaction goes through without a hitch.  Ted and Sam send their respective shares to Jack but their transactions don’t go through. The failed transactions site some issues at the bank. That’s when Jack learns about the many ways a bank transaction could fail. It could be due to technical issues at the bank, one of their accounts was hacked, daily transfer limits being exceeded and sometimes additional charges associated with transferring money.

Cryptocurrencies were created as a solution to this type of problem. Cryptocurrencies are a form of digital or virtual currency that run on a technology known as blockchain. Thanks to blockchain, cryptocurrencies are immune to counterfeiting, don’t require a central authority and are protected by strong and complex encryption algorithms. In a market of more than thousands of cryptocurrencies like litecoin, aetherium, c cache and so on, one reigned supreme –  that is, the bitcoin.

Let’s continue with our example. Let us say Ted and Sam send Jack 2 bitcoins each as their contribution to the previous night’s dinner. But first, let’s assume Phil, Ted and Sam have 3 bitcoins in reserve while Jack has 5. First, Phil sends 2 bitcoins to Jack and a record is created in the form of a block. The transaction details between them is permanently inscribed in this block. This record also holds the number of bitcoins, each of the friend’s hold.

So, after Phil’s transaction, Jack has 7 bitcoins while Phil has 1. Following this, Sam and Ted send 2 bitcoins to Jack and a new block is created for each of these transactions. These blocks hold the information of transaction details as well as how many bitcoins Sam, Ted and Jack have in reserve. These blocks are linked to each other as each of them takes reference from the previous one for the number of bitcoins each friend owns.

This chain of records or blocks is called a ledger, and this ledger is shared among all the friends, which acts as a distributed ledger. This forms the basis of blockchain.

What happens when Phil has only one bitcoin left, and he tries to send 2 more bitcoins to Jack? The transaction will not go through because all of his friends have copies of the ledger and it is clear that Phil has only one bitcoin left. His friends will flag this transaction as invalid.

Even better, a hacker will not be able to alter the data in the blockchain because each user has a copy of the ledger and the data within the blocks are encrypted by complex algorithms. All of this is made possible with the help of blockchain technology.

 

Blockchain can be described as a collection of records linked with each other, strongly resistant to alteration and protected using cryptography.

 

Now, let us have a closer look at the transaction between Jack and Phil and determine how it works. Every user in the bitcoin network has two keys: a public key and a private key. The public key is an address that everyone in the network knows of, like an email address of the user. The private key is a unique address that only the user has the knowledge of, something like a password. First, Phil passes the number of bitcoins he wants to send to Jack along with his and Jack’s unique wallet address through a hashing algorithm. All of this is part of the transaction details. These details are encrypted using encryption algorithms and Phil’s unique private key. This is done to digitally sign the transaction and to indicate that the transactions came from Phil. This output is now transmitted across the world using Jack’s public key. With this, the message or transaction can be decrypted only by Jack’s private key, which only Jack has knowledge of.

 

This is just one of several ways in which blockchain is used in real-life applications. Now, let us discuss the several ways blockchain will affect businesses.

 

Is blockchain relevant for businesses in NJ?

 

As experts in IT services, NJ ‘s TNTMAX considers it hugely important for business owners to explore the benefits of blockchain technology in their work.

Let us consider the advantages for putting blockchain into a transaction processing system:

1. Saves Time: Transaction time from days to near instantaneous

2. Removes Cost: Overheads and Cost intermediaries are significantly reduced

3. Reduces Risk: Since it is secure, it reduces tampering, fraud and cyber-crime.

4. Increases Trust: This is achieved through shared processes and record keeping.

 

Now, let us see how and when we could apply blockchain technology in small and medium businesses, and what blockchain business ideas can be used.

Unfortunately, the concept of blockchain is confusing for most business owners. Plus, there are so many myths about this technology that only a handful of people are brave enough to start working with it.

Our goal is to help you get past the confusion and embrace the change that is inevitable!  (Of course, it’s our job to keep our finger on the pulse of IT, so if you’re looking for IT services NJ businesses can trust, reach out to us at TNTMAX in Bergen County.)

 

Myth 1: There is only one blockchain – This is certainly not true. There are many different blockchain options. Each provides various options to fulfill unique niches and needs. So, you can choose the system which will suit your business the best.

 

Myth 2: Blockchains are absolutely secure – There is no 100% secure system in the world. But in this system, hacking will be recorded and wouldn’t go unnoticed by the redundancies built into the system.

 

Myth 3: Blockchain is open for everyone – Blockchain is a database where all members have access, but access can only be given to the stakeholders. Moreover, a private blockchain can be built on top of a public blockchain, providing access to only those users, who actually need it.

 

Myth 4: Blockchain is only used by criminals – Anyone can use technology for good or bad, and blockchain is no different. However, blockchains record all actions and no one can delete this data. Any transaction can be back-tracked – making it harder for criminals to succeed.

 

Myth 5: Blockchains cannot be used for businesses – Blockchains were created to protect to protect blocks of data, verify information and record all actions. From this point of view, blockchain is an irreplaceable technology for any sphere with sensitive data.

 

Our team of experts of IT services in NJ suggest that the confusion surrounding blockchain prevents us from fully comprehending its value. It is not simply a trend, it is the way we all are going to do business with in the nearest future. And the sooner we understand that, the faster we can acclimate to growing our businesses with blockchain technology.

 

How can we use Blockchains for business?

 

• Payments: As discussed earlier, using blockchain to make money transaction, you exclude banks from this chain and their fees as well. This means that you send your money directly to the person you need to without any intermediaries.
• Smart Contracts: The blockchain platform evicts the chances of delays, suppression or any outside effect. It provides comprehensive financial security, monitors the terms of contract and is unbreakable.
• Distributed Storage in Cloud: The platform helps store data using the same amount of hardware and saves a tidy sum. So, in case your business has a big data department, blockchain is a great technology that can help you to lower your expenses greatly.
• Digital Identity: With this system, it is much more convenient to keep track and monitor digital identities. And the best feature that it brings to the table, is identity authentication, where blockchains can help to keep the entire process secure.
• Notary:  To certify a document in most countries, you will have to pay a lot of money. With blockchain you will spend only $0.50. And if you deal with such a business, this blockchain business idea will assist in keeping adrift.
• Gifts and Discounts: Various loyalty programs greatly help to keep communication with the customers and to show them that they matter. As said earlier, blockchains can make sure for us to tackle different types of scams and create unique gift certificates which would be easy to certify.
• IoT Systems: IoT devices collect megatons of data. All of this information, needs to be processed and stored somewhere in a secure database. Blockchains fit this criteria the best.
• Supply Chain: Usual software that manages supply chains are very simple and in case of a crash, there are higher chances that you might lose all your money. Blockchains record every change and transaction, allowing for redundancy enough to back track any failure or crack in the chain.

 

Every day we see new blockchain business opportunities and how many blockchain startups are appearing all over the globe. It all proves that this system is a bridge to the future for IT services in NJ.

 

If your Garden State business is interested in learning more about how blockchain could benefit your workflow or growth, contact TNTMAX, IT services in NJ.