The technology world is growing very fast, and digital transformation has become a key driver for businesses. The latest technology emerging now is Blockchain from this wave of digital transformation that promises to reshape the way we do business.
However, blockchain is in its initial stages, and understanding how it works can be difficult. Many organizations are hesitant to invest in it or consider implementing it. This article sheds light upon what blockchain technology is and why it’s important for your organization’s future success.
Table of Contents
What is blockchain?
Blockchain is a digital database that records transactions across many computers. It’s a public database that anyone can view and use to record any kind of data. Moreover, the blockchain can also be thought of as the internet for money. It’s an open-source system where all participants have access to each others’ information, creating an uncensored network where everyone knows what’s going on at all times.
Blockchain, or Distributed Ledger Technology (DLT) isn’t just limited to cryptocurrencies like Bitcoin or ether. In fact, most experts agree that blockchain will affect every industry imaginable!
Digital Transformation And Blockchain
Blockchain is a new technology that is changing how we do business. It’s a distributed ledger that records transactions and data in a way that is secure, transparent, and verifiable. Blockchain provides trust through transparency — all parties have access to the same information at once — and its security will help keep your data safe from hackers.
Business Benefits Of Blockchain in Digital Transformation
The benefits of blockchain in digital transformation are many. Here are some of them:
Lower Costs
Blockchain reduces the cost of creating, managing, and validating data by eliminating the need for middlemen like banks and other financial institutions.
Increased Security
With a distributed ledger system that uses cryptography to ensure integrity throughout its network, businesses can trust their systems will be secure from hackers or cyberattacks.
Improved Compliance
Companies using blockchain technology have more control over who has access to their data because it’s not stored on any single server but rather across multiple computers worldwide. This means organizations no longer need to worry about having one person with full access over everyone else’s information (e.g., an employee).
Automation
In addition, companies won’t need any additional infrastructure when adopting new software updates since they’ll be automatically updated through consensus. You no longer need to rely on manual processes such as file management systems or email servers.
Do’s And Don’ts Of Blockchain In Digital Transformation
As the blockchain revolutionizes the way we do business, it is important to consider how you can use this technology in your organization. In this article, we’ll talk about some of the dos and don’ts of blockchain in digital transformation.
Dos
- Use blockchain as a tool for customer engagement.
- Use blockchain technology to create secure, tamper-proof recordkeeping for your business.
- Use blockchain to make your business more efficient.
- Use blockchain to store and share data between disparate parties.
Dont’s
- Don’t expect instant results from blockchain technology.
- Don’t use blockchain technology without having a thorough understanding of how it works
- Don’t use blockchain technology if you don’t understand how it will affect your business model or product.
- Don’t use blockchain technology without considering how your customers will receive it.
How To Assess Your Organization’s Blockchain Readiness In Digital Transformation
- Check the maturity of your organization’s blockchain readiness.
- Check if your organization has the right skills and resources.
- Check if your organization has the right culture.
- Check if your organization has the right processes in place for managing blockchain projects. This includes governance structures and processes for hiring new people with expertise in blockchain technologies, such as developers or software engineers; legal counsels; compliance officers (to ensure compliance with applicable laws); risk managers who understand how to assess risks associated with using this technology; IT architects who can help design secure systems to keep sensitive data secure on-chain so that only authorized parties to have access to it (including lawyers).
Conclusion
We’ll continue to explore the relationship between blockchain and digital transformation. There are many ways that you can use these technologies together, and they will continue to evolve as we move through this exciting time in history. However, as with any new technology, there are some growing pains along the way— it’s just the beginning of the revolution that we are witnessing, in how business gets done in our world.
Digital transformation is one of DEHA’s strategies to drive change. By leveraging blockchain, cloud computing, and big data we have strengthened our technical competencies in digital transformation with a portfolio of services that support our clients to actively create and capture value. Contact us for a consultation call today.
