“Power to the People”: this was one more brilliant and exciting title for one of World renown strength coach Pavel Tsatsouline’s books, recycling the tone of voice of USSR (where he was born and started his career) propaganda in a witty, humorous style with only one aim in mind: helping people grow stronger.
The blockchain, a distributed database technology that appeared in 2009 with the launch of Bitcoin, holds promises for secure, transparent and tamper-proof transactions: a way to give power to the businesses – which are, to date, organizations made of people. This technology still being a little new to the public’s eye, let us examine some of its main opportunities.
- Highway to trust
The blockchain is a distributed, public ledger that contains the history of every transaction ever made on the network. This transparency and immutability instill trust in the system and allow businesses to streamline their processes.
The decentralized nature of the blockchain means that there is no single point of failure and no need for a third party to verify transactions. This makes the system more resilient and trustworthy: it is not a human but a totally impartial algorithm that sorts transactions out. If everybody agrees on an algorithm, there is no risk of bias or conflicting interests.
- Streamlined processes – Businesses can use smart contracts to automate repetitive tasks, such as tracking shipments or verifying identity documents. This can save time and money while reducing errors.
- Improved security – The cryptographic nature of the blockchain ensures that data is secure and tamper-proof. This can help businesses protect sensitive information and reduce fraud.
- Increased efficiency – The blockchain can speed up transactions by eliminating intermediaries and reducing processing time. This can lead to increased efficiency and lower costs for businesses.
- Increased Security = Enhanced operability
A blockchain is a digital ledger of all cryptocurrency transactions. It is constantly growing as “completed” blocks are added to it with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
The information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet. In early December of 2022, the public hospital in Versailles (France) got ransomed by malevolent hackers: the authorities had to close it for days and transfer all the patients into other hospitals which, along with the costs, was pretty risky in some instances. Blockchain, in this case, could have prevented it.
The most important advantage of blockchains is that they’re immutable. Because they’re decentralized across every computer that stores one, it would be incredibly difficult to make any changes without consensus from the network majority. That makes blockchains ideal for recording not just financial transactions but also events, votes, identity management systems, and much more
- Focus on useful agents
The immutability of the blockchain means that once data is entered into the ledger, it cannot be changed or deleted. This ensures that all transactions are recorded accurately and cannot be tampered with. The transparency of the blockchain allows all users to view the entire history of a particular asset, ensuring that there is no hidden information. The decentralization of the blockchain means that it is not controlled by any single entity, making it resistant to censorship and tampering.
“Exact words of the Text. But do you understand it? Do You believe it?” ( Prof. Rasczak in Starship Troopers.) What it translates into, in the real World, is the end of parasitic middlemen. Operating costs of many software solutions go through the roof because of intermediaries and not all of them were created equal (from a business perspective). Many fields face rapid incoming mutations due to technology changes. The future is, for many of us, uncertain and we will need creativity in order to partake in a simplified, more efficient and automated Web3 environment – if it is to come to fruition, which is impossible to predict at the time due to legislation-intensive environments. Still, the blockchain architecture is an opportunity for business scaling and streamlining.
4.Cheating reduction through smart contracts
The smart contract is a concept that sounds complicated to the untrained ear but in fact, it is nothing more than what we already showed earlier when we were discussing the trust aspect of Blockchain: the program verifies the contract, once both parties have consented to the terms.
The use of smart contracts can help to reduce the occurrence of cheating in business dealings. By automating transactions and creating an immutable record of all agreements, smart contracts can help to ensure that all parties involved in a transaction uphold their end of the bargain. This can create a more trusting and transparent business environment, which can ultimately lead to reduced instances of cheating.
This architecture of the deal is already familiar to many Web sellers using big platforms like Amazon or Fiverr where the company is a third-party, in charge of contract application. This classical verification process does not only cost time in proper design: it is also quite labor-intensive!
5.Creating customer engagement
In a world where customers are bombarded with marketing messages from all directions, the blockchain provides a way for businesses to cut through the noise and reach their target audiences directly. With the help of smart contracts, businesses can automate many of their marketing and sales processes, making it easier to engage customers in a meaningful way.
The public grew accustomed to freemiums and micro-transactions over the past decade. Ben & Jerry’s got a brilliant idea in 2018 when they partnered up with Poseidon to offer their customers the possibility to buy fractions of carbon-credit on a blockchain, thus making them aware of their impact on the environment. There was the physical transaction (ice-cream for money) and an optional blockchain transaction, appealing to the public sense of responsibility and identification to the cause of climate change.
The blockchain also has the potential to revolutionize loyalty programs. With traditional loyalty programs, businesses have complete control over how points are awarded and redeemed. This often leads to customers feeling like they are being taken advantage of, and many loyalty points go unused as a result. With the blockchain, businesses can design loyalty programs that are transparent, fair, and easy to use. Customers can easily see how many points they have earned and how they can redeem them. This type of program is much more likely to encourage customer loyalty in the long run, especially now that the public is more and more aware of the many CRM tips used by big companies.
The future is exciting: technology is rapidly evolving at a pace so high that we cannot say anymore whether it adapts to us – or we adapt to it. Blockchain is a promising environment for customers and businesses alike, potentially benefiting every economic agent. This, in a sense, is real power to the people.
