In recent years, new trends and development have hit the business world from all directions. In a wide range of digital transformation, if the company is survive, strategic decisions on how to arrange business processes and integrate it into operations, it is critical. For this reason, the management team cannot slow half a shot in the innovation potential to know digital technology for its company, this is crucial.
The block chain is one of the core technologies of this transformation. The basic characteristics of the database technology have been outlined in 1991, but until 2009, the block chain was first used in the practice of digital currency bitcoin. Since then, the possible use of the block chain will develop rapidly. However, in many fields, this technology is still in its infancy. Despite this, the experts are convinced that the block chain will have a fundamental impact on the business world in the next few years.
1. Block chain as a standard for digital transactions
The block chain is not centrally stored, but a virtual database stored in the network, and each user in the network has a local copy of a database. The decentralized structure is combined with the use of the encryption program, ensuring that any information in the database cannot be secretly manipulated by the user. In addition, each transaction must be sent to the entire network as a block of password-protected blocks and is verified (working certificate).
In this way, the block chain creates extremely high trust in the transaction of the point-to-point, and does not require intermediary to supervise the transaction. As B2B and B2C companies are increasingly turning to digital markets, the block chains may become key technologies for digital transformation. It creates trust and security for consumers, customers, trade, and business partners in anonymous world of cross-border digital connections.
2. Block chain as an accelerator for business processes
In digitized transformation, the speed is one of the key factors that stand out in the competition. More importantly, the business processes of storage and transfer data in the block chain are extremely secure.
On this basis, you may have a fully automated transaction in different business sectors. This process is not only reliable, safe, and the speed is extremely fast.
3. Block chain is a game rule change in the supply chain
Digital transformation gave the huge space of the company’s reorganization supply chain. The block chain can be an important component that is involved when it is distinguished from the competitors in the next few years, it may prove to be one of the factors that change the rules of the game.
The deposition property of the block chain has created the largest transparency in each transaction in the supply chain – from the procurement of raw materials and the sales of distribution and final products. Each transaction can be recorded on the block chain with a fast and convenient marginal cost. In this way, the risk will be reduced, and the final customer can track the source of the product throughout the supply chain.
4. Block chain as a connection architecture
Digital transformation is rebuilding the company’s communication infrastructure. The Internet of Things connects various devices, and the machine’s communication simplifies industrial production, cloud-based services allow everything that is ubiquitous to access data, information, and applications. This development provides a lot of opportunities for the company to completely redesign the production and workflow.
It is estimated that by 2025, more than 75 billion Internet accessories will be used. More importantly, the block chain may become a key technique for data management.
However, growing connection levels, also bringing more and more challenges to the company in handling this data. The new block chain platform is operated using a more streamlined equity verification, which can safely and transparently manage the large amount of data generated in the business process of digitized transformation.
5. Block chain as a platform for intelligent contracts
The digital intelligent contract has long been used in a variety of business processes. However, in order to conclude them, you usually need a central IT system that guarantees data security and an intermediary that ensures compliance with rules.
The block chain will make these two situations in the future. Intelligent contract not only safely stores information in the block chain, but also automatically modifies information in a trustworthy manner. The intelligent contract can be set according to the protocol reached in advance and is basically tamper-proof and transparent. In this way, they can thoroughly change the digitization of the business process in the future.
6. Block chain as financial function fuel
The success of the block chain in creating and managing the encrypted currency such as Bitcoin shows that this technology has led to the revolution of currency and finance. In terms of financial functions, it can also control many processes through a virtual dispersed account as a distributed book technology. Financing, payment processes and internal transactions have been implemented as a block chain.
Compared to “centralized book” technology, “distributed book” technology can be used as a demultiplexing management of data as a block chain.
The attraction of the block chain on financial functions is not only the security and accuracy of digital assets in real time. Combined with other digital transformation techniques, such as artificial intelligence, block chains will be more and more commercial intelligence and business analysis related solutions in the financial sector in the next few years.
7. Block chain is a successful factor in competition
For many companies, especially those smaller companies, block chains listen to a distant dream, only big companies or special high-tech industries have the opportunity to enjoy.However, this attitude will soon become dangerous, especially in B2B competition.In the near future, many major companies will ask their contractors, such as cargo suppliers, convert their interface processes into certain business processes of block chain technology.For this reason, the discussion of the block chain is essential for the survival of all companies that do not want to lose their arms in the commercial world during the digital transformation.