The Impact of Blockchain Technology on Different Types of Businesses

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Blockchain technology has come into our life seriously and for a long time – there is no doubt about that. But still, the blockchain is perceived by the majority through the prism of cryptocurrency and ICO, and therefore other advantages of the technology fade into the background, becoming unobvious for people and business.

For the use of blockchain in business, the size of the company is not a limitation. Business solutions on the blockchain can significantly reduce and even eliminate certain standard procedures from the process, which, of course, affects business models and revenues only positively. But it is important to take into account that the blockchain is not a tool for solving all problems. Blockchain and ​blockchain development company​ provide a set of tools that allow you to conduct business and make investments more effectively. As a result, it plays a decisive role, in whose hands these tools are and how they are applied in practice.

With reference to business, the blockchain today is developing in three directions. The first relates to the classic large companies. Such companies implement blockchain tools in their activities. They are adopting blockchain tools in their activities, gradually adjusting to their entire business model, but in essence, such companies remain centralized.

As a result, a hybrid system is obtained, balancing between centralization and decentralization. Blockchain for such companies is in its pure form a practical mean of achieving certain goals. For large companies, the use of blockchain tools is extremely beneficial. This allows them to significantly reduce the operating cost and time to obtain and process the necessary information, as well as allows to increase the transparency, efficiency, and traceability of certain actions and steps.

The second direction associated with the interaction of the blockchain and business is the emergence of fully decentralized platforms from scratch, within which anyone can conduct business activity. It must be said here about the key differences between conventional and decentralized applications – it is much more security and transparency of the latter. In a decentralized application, all actions are performed using smart contracts that cannot be falsified or changed retroactively. Transactions in smart contracts are closed automatically as soon as all the conditions of the transaction on both sides are fulfilled.

Thus, we observe the emergence of three main business models using the blockchain:

●    Use of ready-made blockchain solutions by traditional companies without anychanges to their own structure – such companies use ready-made blockchain solutions from the outside, or hire contractors through decentralized business platforms;

●    Use of blockchain solutions developed by traditional companies or developed jointly with someone — such companies remain centralized, changing only part of the management and business processes that blockchain tools directly affect the use of blockchain tools;

●    Fully decentralized business platforms, where anyone can become a supplier of goods and services.

The fact that large companies are implementing solutions on the blockchain is nothing special. More importantly, blockchain-tools are generally accessible, easy to use and do not require excessive investments, and therefore are ideal for the development of small and medium businesses. Many small and medium-sized businesses have already realized this.

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