Everyone has heard at least something about cryptocurrencies and the blockchain on the basis of which they are made, but very few understand that this technology can be potentially used not only in the financial sector but also in medicine, trade, logistics, gambling, for protecting copyright and even at elections.
More than 12 years have passed since the first cryptocurrency emerged — blockchain technology has made great progress. The platforms of the fifth generation have entered the market, and many of the problems bitcoin had faced (and still continues to struggle with), such as excessive power consumption, the necessity to buy expensive mining equipment, scaling difficulties, and low throughput are already a thing of the past.
In addition, blockchain platforms offer more than purely financial functionality. Nowadays these are entire ecosystems on the basis of which new startups are deployed. So what can blockchain give to businesses and individuals? More on this below.
Why do businesses need blockchain?
A distributed ledger, smart contracts, and the principle of decentralization that they embody provide a range of benefits for businesses. Here is the list:
- Protection. When you are about to sign an agreement with a partner you cannot fully trust, there is no better solution than blockchain. A distributed ledger is implemented in such a way that no user can manipulate it at their own discretion. And self-executing smart contracts provide a 100% guarantee of the execution of any transaction.
- High speed. Unlike banks and other financial institutions, all transactions within the network occur instantly, thanks to the high throughput of the platforms (now they provide 100,000 or more transactions per second, which corresponds to such financial giants as MasterCard and Visa).
- Low commissions. There are no intermediaries in this system (the fulfillment of the conditions is ensured by smart contracts), so the commissions are minimal, for example, 1%, or even 0.5%. How much does your bank charge for a money transfer?
- Reliability. A decentralized network is very difficult to hack from the outside (or very expensive, and therefore impractical) since millions of machines will need to be attacked immediately. Thus, using blockchain-based products, a business receives an almost 100% guarantee of its security.
All these advantages will be very useful for a financial business, logistics, and trading company, as well as for the protection and transfer of copyright and property rights to real estate, based on the blockchain, you can create a decentralized data storage, for example, patient information and many others.
Let us consider Qchain, a modern blockchain platform, as an example. As in any other modern decentralized network, it has all the advantages listed above, and its set of products will suit a wide range of potential customers:
- A decentralized exchange where users can buy and sell their goods and services.
- Decentralized data storage with almost 100% protection provided by several systems.
- Tools for creating your own token and launching ICO based on this platform.
- Service for receiving passive income from staking.
- Decentralized Magic Lotto with completely fair and transparent draws.
And this is just the beginning. In the near future, the team plans to expand the functionality of Qchain, so its scope will only grow.
True, blockchain and the decentralization that it represents will not replace many of the systems we are used to, but they will certainly be able to compete with centralized products in many sectors of the economy. And given all their advantages, we can confidently claim that in the coming years, decentralized blockchain platforms and their products will rapidly gain popularity all over the world.