General introduction

Why do businesses want to deploy Blockchain in their organizations?

Applying blockchain to the business is one of the most important factors that promotes the adoption of new technology and is likely to become a technological revolution. Blockchain has a lot of value and potential. That's why big companies like Microsoft, IBM, Amazon, Facebook have spent a lot of time and effort researching the system.

But as businesses' adoption rates for blockchain increase, the question is why should they use it? Companies want to know whether or not they need blockchain and why they should, especially with the decentralized feature being one of the system's leading pillars. Will blockchain help them manage businesses effectively?

The article will help you understand why blockchains are right for companies even if the decentralized feature is not necessarily for them. Blockchain is such a powerful tool, such a troubling force, but because it is applicable in so many cases, it can provide many benefits.

 

Consider the other pillars

If decentralization is one of the main pillars of blockchain, another important factor that helps technology develop is transparency. Transparency in companies and corporations has reached new levels of importance in the digital age.

In many respects, when people become more aware of the importance of data, they demand protection and accountability. GDPR in Europe, Facebook's Cambridge Analytica scandal are just a few of the fuss. These events have pushed the company's need for transparency into being part of an online organizational culture when it comes to personal data.

The need for transparency in business structures has become more and more popular because shady working activities are lurking somewhere. Sweathop workers at clothing manufacturers and animal slaughterers at food processing companies must be transparent - and this is what blockchain can provide: real, immutable evidence. .

For example, a company using blockchain technology in its supply chain can definitely prove that their coffee beans are fair trade; Their food is clean; Manufactured 100% vegan or sourced according to the sticker.

Furthermore, consensus classes where group members are discouraged from cooperating with the rest help increase transparency and create more contradictions for regulators to engage. and blame.

Reliable performance

Another aspect of blockchain, though perhaps not a pillar, is definitely a plus. It is the ability to increase efficiency in many different fields and situations. When we talk about disruption, especially in company areas, it is often due to an inefficient system that needs to be changed to become better.

In businesses, efficiency is often limited because of insufficient levels of communication and lack of trust between associated parties. Again, with the example of a supply chain, moving goods from farm to factory requires farmers, carriers, border guards, regulators and other companies to work together. , communicate and trust each other.

Accordingly, they apply different systems and practices - from paper and even fax, to different digital software. But if we can put all the parties into a blockchain system, the technology can immediately eliminate the need for trust because it is transparent and immutable, making the efficiency suddenly soar.

We have seen examples of this increase in efficiency in the supply chain through   IBM TradeLens . This is seen as an effort to digitize global supply chains using blockchain.

More than blockchain

Part of the reason businesses ask why they need blockchain is because of a misunderstanding of how blockchain and Bitcoin (cryptocurrencies in general) can operate independently.

Many businesses are concerned about cryptocurrencies because of the way the market has described Bitcoin: volatile, dangerous, unregulated, etc.However, some businesses are gradually getting smarter and tapping into a world. Potential is not cryptocurrency.

JPMorgan was once one of the fierce Bitcoin critics but now has launched its own cryptocurrency - JPMorgan Coin. The coin is leveraging the ability of blockchain to transfer global value without the same retention points and regulations as seen with traditional finance.

Not necessarily a significant change on the outside, but on the inside there needs to be a lot of improvements in bank costs and speed of payment for the company and its customers.

Unfortunately, some companies do that just for marketing purposes. One of the most prominent examples is the "Long Island Blockchain", which has moved from an Ice Tea company to a blockchain business by adding an implied, exaggerated word to its name.

It was this change that boosted the company's stock significantly, but even so far, it is still in  the  FBI's sights because it is suspected of insider trading.

Starting point

As stated at the beginning, businesses' adoption of blockchain has a huge impact on the development of technology. Currently, it is necessary to connect decentralized blockchain with centralized blockchain until there are appropriate decentralized governance solutions and models that allow us to distribute value more easily than for businesses themselves.

However, this does not happen right away, but for a long time and without the courageous pioneering of some businesses, we will never be able to push technology further.

 

Contact information

EG VIET NAM TRADING SERVICES COMPANY LIMITED

 Address: 22 Quach Vu Street, Hiep Tan Ward, Tân Phu Distrist, HCM City

 Phone: (+84)86 705 74 79

 Hotline:  (+84)86 707 74 79

 Email: info@egvietnam.com

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