The “Blockchain” is the latest “buzzword”. Almost all the top executives across various industries have heard about it, some have considered adopting it, and then there are those who would want to know more about it. IBM — the tech giant, involved in the development and implementation of distributed ledger technology through its participation in Hyperledger project and Blockchain as a Service (BaaS) offering has released three guiding principles for enterprise blockchain adoption.
According to IBM, an understanding of these three principles will help key decision makers and top-level executives gain a better understanding of the benefits of blockchain technology and how their business can get the most out of it. The three principles as published by IBM in a press release are as follows;
“Blockchain as the potential to transform trade, transactions and business processes.”
Blockchain was originally designed as a ledger to record all cryptocurrency (Bitcoin) transactions happening over the network. Blockchain will provide businesses with a smart, tamper resistant infrastructure to conduct monetary transactions and business processes. The nature of blockchain further enhances the transparency and legitimacy of operations by creating immutable records.
“The value is in the ecosystem as the blockchain network grows.”
It is a well-known fact that Bitcoin is the most secure cryptocurrency network out there at the moment. The network’s security level is directly related to the number of participants and the total hashing power. The second principle of enterprise blockchain adoption states the same. It mentions that the blockchain’s value grows with the business and a robust distributed ledger ecosystem is essential to support large business networks and innovative business models. The second principle advises companies to opt for a tried and tested blockchain protocol instead of attempting to create something from scratch.
“Blockchain can significantly improve visibility and trust across business.”
IBM’s third principle has a direct correlation with the first principle. For starters, blockchain imparts unprecedented levels of transparency and accountability in comparison with existing solutions. Also, transactions on blockchain platforms happen much faster than conventional systems, at a fraction of the cost. It also eliminates the unnecessary intermediaries and middlemen otherwise involved in transactions.
Speed, transparency and cost efficiency are three attractive qualities for any company. By utilizing blockchain technology, they can achieve all these things. The applications of distributed ledger are not limited to one single industry segment. Many businesses across domains can take advantage of the technology to enhance their performance and further strengthen the bottom line.
Ref: PR Newswire | Image: NewsBTC