Steemit Crypto Academy Contest / S4W3 - Understanding Blockchain Technology In Business And Finance by @jueco

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Hello Crypto friends,

What a wonderful opportunity it is to be among the participants of this week crypto academy engagement challenge.

The crypto-academy has really been of great benefits as it helps to educate it's users on the the operation and importance of the crypto space and how it affects our day-to-day activities.

This week engagement challenge is a top notch as it aims to increase our understanding of blockchain technology in business and finance.

As we know, the blockchain technology was first implemented with the development of the first cryptocurrency (bitcoin) which is mostly used for busineses and financial transactions.

I am very sure we will enjoy this ride, please stay tuned as we begin our wonderful adventure.

Before we can properly understand how the blockchain can be used in finance and busineses, we need to have a proper understanding of what a blockchain is.

A blockchain can be explained to be a ledger or a distributed database which is shared amongst the node of computer network.

A blockchain is popularly known for the significant role it play in the crypto space which is the maintenance of a secure and decentralized record of transactions.

The concept of a blockchain is that it guarantees the security and fidelity of a record of data and also develops trust without the interference of a third party.

Ever since the Introduction of the blockchain technology in the year 2008 when BTC was created by Satoshi Nakamoto, many other sectors has adapted the use of blockchain technology in their operations.

The health sector adopted the blockchain technology because it helps them to effectively store medical records without manipulation from external factors.

The blockchain technology can likewise be used in the world's financial sector and help improve lots of busineses.

Below are some ways the blockchain technology can be useful in the financial/business world.

• ENHANCED SECURITY:

The Introduction of blockchain technology to the financial realm has greatly helped to improve the security of financial transactions alongside records/details of business partners.

There have been numerous cases of fraud that came as a result of the vulnerability of the financial system of some busineses, but with the adoption of the blockchain technology, it will be very difficult for anyone to hack into the financial database of a business.

Taking the commercial banks for example, the commercial banks are most times vulnerable to attack from predators and this most times lead to loss of funds of users, but with the adoption of blockchain technology, such successful attacks have been reduced.

• LOWER COST:

Another very important use of the blockchain technology in the financial realm is that it helps to reduce the cost of maintaining a business.

For example, without the application of blockchain technology, many busineses will have to pay huge amount of money to different data servers for security of data.

Also it is quite expensive to make international transactions using the traditional business system.
For example to transfer funds from my country to another, a citizen will have to go through various processes and this cost lots of money.

With the adoption of blockchain technology, a user can easily transfer funds to anyone irrespective of their location on the planet earth.

• AVAILABILITY TO ALL USERS:

Another Importance of blockchain technology to the financial system is that the blockchain is readily available for any user to make use of.

To make transactions using the blockchain technology, a user doesn't necessarily have to leave his home, as all transactions can be easily done at home and at a very fast rate

• INCREASED TRANSPARENCY:

Another Importance of the blockchain technology to busineses is that it helps to reduce the rate of manipulation in a business.

One of the most unique properties of the blockchain is it ability to remain immutable.

With this characteristics, it will be very difficult to change any transaction that has been recorded on-chain.

Also, the blockchain technology happens to be decentralized in nature which means that it is not under the control of any central authority.

With that characteristics in mind, it will be impossible for any transaction to be hidden, all transactions will be treated as same and will be openly exposed before everyone, and this will thus help to reduce the rate of fraudulent practices in a business.

• TRANSACTION VALIDATION:

The adoption of the blockchain technology in a business helps to increase the rate at which transactions are validated.

In the traditional system, such validation passes through lots of process by centralized entities before it can be confirmed, but with the use of a blockchain technology, transactions are validated very quickly with a very high accuracy.

It should be of no surprise to us that there are numerous application of blockchain in business and finance, I will be discussing few below:

• SUPPLY CHAIN MANAGEMENT:

Supply chain as we know is a complex network which is responsible for the distribution of product from one chain of production to the other.

This network is responsible for lots of transactions and as such can be effectively managed with the help of a blockchain technology.

Without the implementation of the blockchain technology in it's operation process, it will be difficult to keep track of it's numerous transactions taking place concurrently.

• GAMING:

With the help of blockchain technology, new formats of games has been developed which helps it's players to play and earn the native token of the site while playing.

Another interesting part of such games is that the earned reward can be easily shared with other gamers which makes the game more fun and interesting.

And since it operates in a decentralized system, gamers are allowed to own such tokens without any disturbance from the central authorities.

• TOKENIZATION:

Another beautiful application of blockchain technology is in the real estate.
Here properties such as houses, estates, lands are tokenized on the blockchain hereby facilitating a direct transaction between buyer and seller.

Such form of transactions also play a great role in reducing the rate of scams in the real estate business.

Many have fallen prey to such scams and with the introduction of blockchain technology, such scams will be no more.

• PAYMENTS OF SALARIES:

The Introduction of blockchain technology has helped to bring about transparency in the payment of salaries.

Before the Introduction of blockchain technology, some corrupt leaders at the top in some companies have been involved in siphoning out of the salaries of the little employees.

And most times, there is usually a delay in the payment of salaries due to one reasons or the other but with the implementation of the blockchain technology, salaries can be easily paid without any form of fraudulent act involved in it.

• ONLINE LEDGER:

In the traditional system, there is usually a shelf that is made just to store all documents of the business or the records of the business transactions.

With the implementation of a blockchain, all records can be stored digitally and there will be no Importance of the shelf anymore.

Also, when the records are stored on the blockchain, it can be accessed anytime and anywhere, be there be fire outbreak or loss of device.

No doubt, blockchain has brought lots of benefits to finance and business but we still need to cast our minds back to the reason the blockchain technology was developed.

The blockchain technology was fully developed in the year 2008 when bitcoin was established by an anonymous user with the name Satoshi Nakamoto.

Bitcoin was developed to provide solutions to the financial crisis that occured in the year 2008 whereby the commercial banks were unable to satisfy the financial needs of it's users, and this was due to the fact that the whole funds was under the control of the central authority.

So it is right to say that the goal of blockchain technology is to ensure that the world's financial crisis that occured in the year 2008 doesn't re-occur again by ensuring the following:

• DECENTRALIZATION:

One of the cause of the world's financial crisis that occured in the year 2008 was due to centralization of users money.

The blockchain technology has helped to ensure cryptocurrency is fully decentralized and not under the control of the central authority.

With this, every individual is in full control of their funds.

It also has the goal of spreading this decentralized system across the financial system.

• LACK OF MIDDLEMAN:

Another goal of blockchain to the financial system is that it seeks to completely eradicate the use of middleman in financial transactions.

There do this by facilitating a p2p network that helps to unite buyers and sellers together.

• TRANSACTION SPEED:

Another goal of blockchain to the financial world is to help increase transaction speed.

Our traditional financial system has a very slow transaction speed but the Introduction of blockchain technology seek ways to increase the transaction speed and at a very low fee.

There are lots of ways cryptocurrency has affected busineses today, shown below are some ways:

• ENCOURAGES INTERNATIONAL TRADES:

One unique way that cryptocurrency has affected busineses is that it helps Facilitate international transactions.

Unlike the use of fiat currency that can be only used within a country, cryptocurrency can be used to facilitate trade with anyone on any part of the world

• TRANSACTION SPEED:

As earlier explained, the traditional financial system tend to process transaction at a slow rate when compared to that of cryptocurrency.

The use of cryptocurrency for transactions has greatly help in improving transaction speed of so many busineses.

Another effect of cryptocurrency to busineses is that it helps them manage cost by using very little as transaction fees.

Unlike our conventional banking system that uses large amount of money as transaction fee.

There is no doubt that as we time goes by, the more the world will come to accept the use of blockchain technology in it's activities.

I strongly believe that blockchain still has more than enough to give to us, as we are yet to use it to it's full potential.

To show that cryptocurrency has a future with us, the big companies like Tesla have began accepting it as a medium of payment.

We won't be wrong to say that the future of cryptocurrency in businesses is still developing since it is yet to be adopted by lots of higher industries.

Although a quite number of big industries has accepted the use of cryptocurrency but a larger number are yet to accept it.

Taking example of the performance of the blockchain technology and cryptocurrency in other sectors of life like the health sector, sport sector, gaming and also the music industry, we can confidently say that cryptocurrency has a bright future with businesses in our world today.

There are a quite number of examples of blockchain applications that are being used in business and finance, they are:

• FILAMENT:

Filament can be explained to be a blockchain project that was developed in the year 2012 which has played a major role in the powering the growth and interaction between IOT, blockchain technology.

Filament serving as a business produces software and hardware solutions through the use of blockchain technology for IOT devices.

This is made possible through the creation of their embedded products that accepts the use of blockchain technology within the IOT network, where IOT transaction are created and properly managed without any complaint.

• INVESTMENT PURPOSE:

Another method in which the blockchain technology can be applied in business activities is what we as investment opportunities.

The investment opportunity is usually made possible due to the high volatility of the cryptomarket.

Business owners can easily buy commodities at a low price in the cryptomarket market using any of the crypto wallet and then sell at a high price.

• FUTURES TRADING:

Futures trading is another way the big banks and other industry make money.

They perform what is known as a technical analysis on crypto markets and then proceed to crypto exchanges like binance and poloniex to make trades and earn profits from such trades.

• P2P SYSTEM:

The p2p system which is known as a peer to peer is another very important operation that came about through the collaboration of the financial system and the blockchain technology.

This system helps to facilitate easy trade of cryptocurrency assets to fiat currency and vice-versa

This operation helps business men to easily buy and sell cryptocurrency and it also profits the exchange hosting this p2p, as they earn passively from liquidity fee.

Indeed, the blockchain technology has a lot to offer to the financial and business sector.

The implementation of blockchain technology will help increase transaction speed and also reduce transaction cost.

Another Importance of blockchain technology to busineses is that it helps to ensure absolute security of the financial records of a business.

I sincerely appreciate the host of this contest as it has been really interesting making research to provide answers to the asked questions.

I eagerly anticipate the next contest.