The Benefits of Adopting Blockchain Technology
[ Part II of II ]
Blockchain technology comes with its own set of risks and benefits to both veterans and beginners. The majority falls into the latter category. In part I of this article, we have looked at the risks associated with implementing Blockchain. Risks are slightly different from hurdles and cons. In part II of this topic, we look at the benefits associated with it.
Potential Short to Middle-term benefits
At Morpheus Labs, we have constantly promoted the usage of Blockchain technology in organizations today. One for obvious reasons, we are a company with expertise in providing blockchain solutions. Secondly, there are real tangible benefits for organizations to start adopting this technology. The benefits of adopting blockchain have far-reaching effects beyond just cost savings. It has the capabilities to change an organization’s overall business model and landscape.
A point to note:
This article is based on overall generic sentiments. Blockchain technology is relatively new and there is not enough data in the market for each industry to give a proper feasibility analysis. There would certainly be inherent risks associated with it. You might want to read the risks associated with it in Part I of this topic. Morpheus Labs will not be responsible for any outcome pertaining to this article.
Cutting out middle-men
Blockchain technology means distributed systems. With it, there is a high probability that your organization is able to cut away the middle-men in some / most of your transactions. Middle-men agencies may charge prices that are exorbitant and it does not really add value to your organization. Furthermore in the entire process chain, if every step of the way, you and your fellow stakeholders cut down on non-essential middle-men activities, the savings would compound and lower the cost of all involved.
This also improves transparency. When there is transparency, there is a correlation rise of trust between direct stakeholders. Accountability issues are mitigated and the business productivity may increase.
Transparency and records
This leads us to the next tangible benefit. Transparency and unchangeable records form solid bedrock foundations. No one is able to single-handedly change records, enabling organizations within the ecosystem that have access to the blockchain network to view records. Decisions can be accurately made and this also cut down on unnecessary paperwork, leading directly to improved productivity.
As mentioned in the above benefit, transparency improves relationships between stakeholders as the trust factor is somewhat increased. This factor would most probably bring about a positive psychological change in those involved.
Improved quality of data
Blockchain technology allows for the non-manipulation of data. Using the distributed ledger network, the consensus process means stakeholders involved in the ecosystem are able to sieve out unnecessary data and disallow the addition of unwanted information. In effect, only validated data is added into the blockchain blocks which is then almost immutable.
When information stored is verified and non-susceptible to manipulation, data quality is improved. Stakeholders involved are then able to ride on this and enact on information that is of quality, minimizing human-related errors and unnecessary red-tapes associated with it.
With the implementation of blockchain, organizations are able to tweak and customized solutions for their own purposes. Developers are able to play around with ideas, solutions and more without worrying about destroying or spoiling existing frameworks. Organizations would be able to give liberty to creativity knowing that their data is safe and secured should anything go south. This would give organizations the ability to loosen stringent measures that were once in place to prevent data-loss, spoiling existing frameworks and more.
A higher level of security
No one is able to alter the blocks in the blockchain network. The quality of data is immutable and stored on networks accessible only to those who have permission. For networks that do not require permission, the blocks are safely secured too and no one can hack into it and manipulate the data.
Furthermore, no one part can have access to the information that is stored on the blocks. As of the time of writing, no one has been able to hack blockchain due to the way it was designed. It will stay this way for a very long time to come.
Long term benefits
The above-mentioned benefits — if implemented optimally — would be considered short to mid-term benefits. The longer-term benefits might see radical changes to an organization business scape. This would lead to overall cost-savings and dynamics of the organization involved.
Assuming blockchain technology has caught up with the rest of the stakeholders in the ecosystem, it would lead to faster transactions, improved productivity and overall lowered costs on a permanent basis. Information is no longer limited by permission and human errors can be kept to the minimum. This results in time-saving and smoother flow between stakeholders in the ecosystem.
With the rise of blockchain adoption among those in the ecosystem, new markets may be formed, coopertition would become a norm and new opportunities will arise.
There are certainly other benefits that are not mentioned here. Not all benefits would be applicable to all organizations. Blockchain is a new technology and with it, there are certainly benefits, hurdles and risks involved. After all, as with all other technologies, no one system is perfect and we must find ways to tweak and optimize it for each to its own. What may work for one does not equate to success for another.
Due diligence and feasibility studies are strongly recommended. Morpheus Labs wishes you all the best in implementing blockchain technology. If you ever require any assistance, please feel free to reach out to us.