What would the world look like without having a bank to store your money? What if you could pay someone digitally without having to worry about sending your sensitive financial information through a third-party app? Those are the exact problems Blockchain hopes to solve.
As a professional, technology like this is compelling. It could transform the way you accept payments from customers, or make payments to your employees. In a nutshell, it could shape the way you do business. So, should you be paying closer attention to Blockchain, or is it still too early in the game? Let’s dive in.
What is Blockchain?
Blockchain is an open, decentralized database of every transaction involving value that uses math and cryptography to eliminate the need for a third-party to be present to facilitate the exchange. That value includes the transfer of money, goods, or services.
One of the most important parts of Blockchain is the community behind it. The authenticity of each person within the transaction is verified by the entire community of Blockchain users to prevent fraud and other financial difficulties. If someone has access to the Internet, they can make a Blockchain transaction.
Why Is This Making Such an Impact?
Many analysts believe that in as little as a decade, Blockchain could be the new normal. It’ll make it easier for people to pay taxes or send money overseas where financial institutions aren’t well-established or accessible. The goal is to limit financial fraud since the transaction is publicly recorded.
The parties with the biggest concerns over Blockchain are understandably legal, financial institutions, and governmental offices. The worry is that for legal offices and banks, handling money and legal transactions, such as wills and trusts, can become difficult. Many estimate that Blockchain could even make them obsolete. Other worries stem from the impact of bypassing financial intermediaries, which will make it harder for government to regulate financial transactions.
Should Your Small Business Listen Up?
Although it’s unlikely that Blockchain will impact small and medium-sized businesses anytime soon, it’s good to keep an eye on what’s happening. 10% of global GDP is estimated to be on Blockchain by 2027, according to the World Economic Forum survey presented at Davos. The key is to understand the specific use cases for your small business and then decide from there whether or not it’s worthwhile to you now.
This technology is quickly progressing with several patents already being filed. You don’t want to be left behind or get caught off guard as it continues to progress.
When and if it does catch fire, plan to see some significant changes. The way you create and sign contracts will change. The way you pay your employees will change. Even the way you cast your vote as a citizen could change. By keeping a pulse on this quickly evolving market will help you know when and if to lean into the change.
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