In 2023, blockchain technology, one of today’s rising technology trends, entered our lives with cryptocurrencies, but it was not limited to the field of finance. It has brought digital transformation in many areas.
Blockchain technology, which has led to major changes especially in the business world, has also pioneered technological transformations in how organizations and companies do business.
First of all, in order to comprehensively understand how blockchain technology has changed the business world, let’s start by understanding what this technology is.
What is Blockchain Technology?
Blockchain, as its name implies, is a specialized database system that is stored and encrypted in the form of blocks.
Data stored in blocks is not tied to any administrator or headquarters, it is stored in a decentralized form and distributed across a network of computers.
Each new transaction is recorded on top of the previous one and each time new data is entered, the blockchain is updated. Thus, no data is ever lost or deleted.
How Does Blockchain Technology Work?
Blockchain is recorded with a cryptographic signature called hash. Every block is chained to the previous block.
This process, which is repeated with each new data entry, prevents the data from being changed.
This step, which is carried out only over the computer network since it does not need a central administrator, prevents any errors that may occur with human participation. Distributed data is not stored in a single place, so it can be recovered in case of any error.
Moreover, it enables data sharing of a common group within a company or a common group in inter-company business networks. Only those with permission can access this data and every access is recorded.
It is nearly impossible for people or parties with access to the data to modify it. The blockchain is updated with every transaction, every step is recorded. Blockchain technology ensures digital security by preventing the alteration of recorded data.
Therefore, blockchain technology is a preferred option by many organizations, companies or individuals who want their critical data to be protected against possible cyber-attacks.
In Which Areas Is Blockchain Technology Used?
Blockchain technology is used in many areas such as education, health, politics, finance, energy or commerce. Blockchain enables the recording, protection and sharing of the data in these sectors.
It enables companies to carry out transactions easier and faster, while also ensuring data security. Blockchain technology eliminates intermediary institutions and accelerates transactions over a digital network.
Thanks to blockchain technologies, manufacturers in the field of commerce, for instance, can closely monitor their products, control the supply chain and monitor the entire process transparently.
Many institutions or companies in the health sector prefer blockchain technologies in order to store patients’ information in an organized system and to access medical records more easily.
Thanks to today’s technologies, blockchain technologies can be integrated into existing applications in many areas.
How Has Blockchain Technology Changed the Business World?
The expansion of the use of Web 3.0 and blockchain has brought along many changes in the way of doing business in many fields of work. Many sectors in the business world have incorporated these new technologies into their working methods.
Blockchain technology allows data to be recorded and tracked without requiring corporate or individual involvement, while at the same time facilitating business processes and providing companies with a huge profit.
Moreover, it provides savings in the company budget by reducing the costs spent on intermediary institutions by eliminating third parties. Also, digital and smart contracts between companies using blockchain technologies increase operational security.
The companies’ data sharing is protected through the cryptographic code provided by blockchain technology.
Blockchain technology, which has started to be used in many sectors because of all these advantages, brings many developments and innovations from the finance sector to the health sector.
Blockchain technology, which started its adventure primarily in the field of finance, is commonly favored by banks in particular. The protection of data in a block encrypted recording system in a digital and secure environment allows banks to provide a high level of service to their customers.
Customer transactions such as credit withdrawals, debt payments or money transfers are recorded through blockchain technology. Data analysis becomes easier in their next transactions at the bank.
HSBC, a British bank, for instance, uses blockchain technology to ensure foreign currency flows between its global branches. HSBC is also known to utilize blockchain technology in automobile sales.
In the field of trade, blockchain technology makes it simple for supply companies to get information about the status of their goods.
Companies operating in the field of food production and supply can closely monitor the entire process from the production, preparation, packaging and distribution of these products.
On the other hand, Carrefour, a French-based supermarket chain, is also known to use blockchain technology to track more than 30 product lines. Thanks to this technology, it states that its sales have increased and the number given will increase even more.
Moreover, large companies such as Nestle and Unilever closely monitor when and where each product comes from or how it is stored via blockchain technology.
CONA, the bottler of the world-famous cola brand North American Coca-Cola, also emphasizes that it handles its orders and shipments via blockchain.
Amazon, one of the world’s largest e-shopping sites, uses both blockchain technology and blockchain cryptocurrency. With Amazon’s own Amazon Managed Blockchain system, Amazon continues to cooperate with its partners while supplying its products.
In the field of health, blockchain technology is used to securely store and share patients’ electronic health records.
IBM, one of America’s largest IT technology companies, is known to carry out people’s health status, vaccine tracking and COVID-19 test results through blockchain technology with the Digital Health Pass application it launched during the pandemic.
Likewise, Block Pharma, a blockchain company, uses blockchain technology to ensure security in the pharmaceutical production and distribution sector and to closely monitor the distribution of medicines.
Google, one of the world’s leading companies in the field of technology, draws attention to its active use of blockchain technology.
Google, which offers data storage to customers, integrates blockchain technology into its systems through Google Cloud, the cloud data storage platform, and offers it to the user’s service.
Xbox, Microsoft’s own application, also utilizes blockchain technology to inform game publishers about the copyrights of games. Since 2018, Xbox has further developed this system, which they have been using since then, claiming that they can do this in seconds and save time.
We know that blockchain technology, which brings a new perspective to the way of doing business, is already active in many areas.
In the future, it is predicted that cryptocurrencies, which are blockchain technology products, will be used not only in business order but also in payment systems.
It is also estimated that blockchain technology will serve in many more areas with developing technologies. This technology is expected to become a part of our daily lives.