Since the 1990s, the Internet has changed every aspect of business. For many of us, the first time we used the Internet for business or created a web page dates back 25 years. Today, virtually every corporation, government agency, college, small business, and non-profit relies on the web, and almost all of them have at least one social media account. Understanding what we know about the necessity of the Internet, it’s vital for companies to stay informed about the current climate, as well as the evolution of how we use the Internet for business. One of the most prevalent results of these technological evolution is blockchain technology.
What is Blockchain Technology?
A blockchain is distributed ledger—a series of digital data that is synched by consensus across multiple geographical locations—where the consensus is established using a form of cryptography. The transactions are peer-to-peer, and peers can be individuals, systems, or entire organizations that function as network nodes. A continuously updated and unchangeable record is established as transactions occur across the distributed network, each of which constructs a copy of any new transactional data. The data is verified through cryptographic keys, digital signatures, and algorithms until a consensus is reached, after which it is established as permanent record.
Why is Blockchain Technology Important?
Blockchain Technology is the clearest evolution of distributed ledgers, adapted by companies as a means to secure data transactions and maintain the integrity of records. More nodes in a blockchain means more agreement is required for data verification. Essentially, the ledger is strengthened by the amount of eyes that are checking any given piece of data, and when a blockchain network becomes truly massive, data corruption, loss, and unwarranted alteration becomes close to impossible.
Why Should You Use Blockchain Technology?
In the IT community, it is known that blockchain technology is highly transparent and resistant to change. Using this technology not only secures the transmission of data, it creates trust between your organization and its consumers. Using a blockchain is proof your company takes data accuracy and integrity seriously, and that you are willing to take measures to ensure their protection. The need for consensus makes blockchain records immutable, meaning the records can only be changed when a new consensus is reached. Even if a third party penetrates one of the nodes on the network, they wouldn’t be able to distribute false data within the blockchain without sending out alarms to the other nodes.
Benefits of Blockchain Technology
The following are the benefits of using blockchain technology:
· Provides transparency for any data passing through a network. If anyone submits changes, everyone is updated.
· Builds trust for consumers who need reassurance their data will be protected
· Can be used to verify any type of data, from sensitive financial and medical information to supply chain logistics.
· Decentralized, meaning each piece of data is backed up at countless locations, making it nearly impossible to affect the entire system with a single infiltration on one of the nodes.
Industries Using Blockchain Technology
Listed below are a few of the most prominent business industries that employ blockchain technology:
· Insurance companies use blockchain technology for record transparency and data integrity
· The automotive and retail industries regulate their supply chains with redundancy and to secure high volume financial transactions
· Healthcare organizations use blockchains secure sensitive medical data and maintain the accuracy of records that must be accurate
· Banking companies employ blockchain to create transparency, security and accuracy for financial transactions both big and small
· Government agencies use blockchain to secure the identities and privacy of countless individuals
Business and Government Contracting Opportunities
Government contracting is a lucrative endeavor, considered by many companies to be the end-all for corporate growth and long-term profitability. Contracting with a government agency is predictably strict, however, particularly in any facet that deals with citizens’ private data. One of the best ways to meet the government’s compliance standards is to employ blockchain technology, as it will separate your business from competing agencies who forego its use. According to dhs.gov, a permissioned blockchain is ideal to deliver a diplomatic consensus mechanism to time-consuming clerical operations; and the technology lends itself specifically to “public records, budget allocation, supply chain monitoring, and the government approval chain process.
Federal and State Government statistics for Blockchain Technology
The following are a few statistics on the use of blockchain technology in state and federal government operations:
· The US Department of Health invested $49 million to install artificial intelligence and blockchain solutions to reduce workloads and costs.
· Homeland Security has initiated a Silicon Valley Innovation Program that is open to US and international companies, with $800,000 set to fund proof-of-concept demos using blockchain technology.
· The Food and Drug administration has committed over $13 million for a blockchain projects at USC.
· Virtually every state in the Union has a bill that represents a blockchain initiative and related funding to study ways to integrate blockchain technology into the private sector. The NCSL provides a comprehensive list of blockchain-related legislature here.
This information was provided by Dorkin Technology Solutions, a leading research and development firm that provides project management, recruitment consulting, and IT management in aviation, government, IT, and data analytics. For more information on how we can help you employ blockchain technology for your business, visit our official site or send an e-mail inquiry to [email protected]
References:
· https://www.dhs.gov/sites/default/files/publications/2018_AEP_Blockchain_and_Suitability_for_Government_Applications.pdf
· https://www.dhs.gov/science-and-technology/svip
· https://www.ncsl.org/research/financial-services-and-commerce/the-fundamentals-of-risk-management-and-insurance-viewed-through-the-lens-of-emerging-technology-webinar.aspx