One of the top-rated digital risks of the 20 th century is cyberattacks and the total number
of cyberattacks is expected to double by 2025. Cyberattacks not only disrupt normal operations
but may cause damage to important IT assets and infrastructure. Every company, be it small or
large, need to embrace new solutions to prevent the growing incidences of cybercrime. One
such means by which companies can create more secure digital infrastructure is blockchain.
With an increasing demand to defend against cyberattacks, it is better to have a smart
and reliable partner who can help you understand and implement blockchain solutions for your
business. This blog gives you a detailed overview of the future’s most demanding technology –
blockchain.

What is Blockchain Technology?

Blockchain technology is a shared, decentralized, distributed, and immutable ledger that
records the origin of a digital asset and tracks those assets in a business network. It is
sometimes also referred as Distributed Ledger Technology (DLT) as it distributes digital assets
transparently through the use of decentralized processes.
Let us take the example of Google Doc to simplify this analogy. When you create Google Docs
and share it with others, the document is distributed instead of copied or transferred. Everyone
has access to the document and sees the changes recorded in real-time. Block-chain is more
complicated than this but its functioning is apt like this.

Benefits of Blockchain:

The smart use of blockchain technology proved to be beneficial for various business sectors as
it addressed many business issues effectively. The following are the main benefits of blockchain
through which industries are taking added advantage:

Enables Trust between Participants: Trust is the most important factor in business dealings that involves transactions or data sharing. Many times you don’t know the party involved in the dealings and at that time trust
plays a crucial role. Blockchain creates trust between different entities without the need for any intermediary. Bitcoin and Cryptocurrencies are the best examples of how blockchain enables trust between parties who are unknown to each other.
Enhances Security and Privacy: Blockchain uses end-to-end encryption to create unalterable records of transactions or data sharing. This leaves no space for unauthorized activities and frauds. In traditional computer systems, data is stored altogether in servers, but in blockchain, it is stored across a network
of computers, to prevent your valuable data from hacking. Additionally, blockchain improves
data privacy by removing identifying information so that the source cannot be known.
Cost Reduction: Blockchain saves costs for enterprises by offering automation in data amendment and aggregation, data reporting, and audit processing. One of the main advantages of blockchain technology is the elimination of middleman or third-party providers that offers the above processes.
Speedy Tracking of Origins: Blockchain technology traces the origin source of transactions or data or items in seconds. This allows an organization to better manage inventory, respond to problems and confirm the authenticated sources of data or transactions. This benefit of blockchain is very useful for the retail industry to identify the source of goods and keep watch on the quality standards they are following.
Real-time Time Stamping: Blockchain technology strictly follows immutability which means transactions or data sharing once recorded, can’t be changed or deleted. Every transaction on the blockchain is date-stamped in real-time enabling secure and reliable inspection of information.
Full Control of Data: You have individual control of data meaning you can decide which data you want to share,
with whom you want to share, and for how long you wish to share. This gives you added advantage of data protection.
Transparency: As blockchain is a distributed ledger, all participants share a copy of the documentation. Everyone can view the information of transactions or data shared. If data is updated or changed, everyone gets notified about the same in real-time. Top business experts agree with the above benefits and are confident that blockchain will bring disruption and business transformation, not sooner, but in the next 5 to 10 years. Now, let’s see how you can implement blockchain technology.

How to Incorporate Blockchain:
Though blockchain is a new technology and has yet to show its impact on various businesses, it is going to stay for a long time. So as a business leader, implementing it is a good idea to apply its benefits to your daily business functions:
Explore Pilot Projects: Before implementing, you first need to identify pilot blockchain use cases that are currently being employed in the market and their benefits to businesses. This will answer why your business needs blockchain?
Start Small: Once you identify a use case similar to your business goals, start implementing blockchain technology on a small scale. You can test, use, and analyze the results once implemented. If you get positive outcomes, you can try the same implementation roadmap on a large scale.
Develop a Proof of Concept (POC): POC is a process that determines the practical feasibility of blockchain implementation for your business. Identify a problem that needs to be resolved using blockchain and develop your POC accordingly.
Select a Blockchain Platform: Now it’s time to select a reliable blockchain platform. Don’t get misled by impressive marketing tactics and fall for the wrong choice. Select a platform that best suits your budget as well as has a solid history of being successful in your preferred field. Some of the good blockchain platforms are Ethereum, AWS (Amazon Web Services), Microsoft’s Azure, and Oracle.
Test Existing Blockchain Technologies: If you are SMB or startup, check the technologies provided by the blockchain platform selected. Check whether these technologies fulfill your business needs and test them to make sure it functions the way you expect them.
Onboarding Other Participants: As you share data or transactions with other partners and stakeholders, you need to liaise with them from time to time. You need to build a robust governance framework for the efficient functioning of the ecosystem. While onboarding other participants, you must ensure they have realized the benefits of their investments and remain in-network.
Operate and Manage the Network: To get started with blockchain, you need to build an initial block on your own. Create a secondary connection to record the internal responses and build the groundwork for nodes to send and receive information.
Deployment: Now you are ready to deploy blockchain technology for your business. Host all your applications on the main chain and deploy them on a cloud server so that everyone can have access to it anytime, anywhere.
If you are unable or doubtful of carrying all the above steps, it is better to pick a trusted partner who will help you at each stage and satisfactorily implement blockchain for your business.

Precautions When Investing in the Blockchain Technology: The following are the quick things to consider while investing in blockchain:

  • First conduct a strategic evaluation to check if implementing blockchain for your business is truly feasible or not.
  • Check what upgrades are required in your existing IT infrastructure and the cost you need to bear for the same.
  • Be prepared for the strategic failures as a result of the unstructured implementation of blockchain.
  • Think of it as your long-term investment and don’t be greedy to get your investment covered in just a few months.
  • Check how and when you are going to implement it and inform the same to other participants to avoid delays in implementations.

Conclusion:

Cyberattacks are becoming more frequent, targeted, and complex. As a business leader, you need to understand the targets of attacks and consequences and build your cyber security wall to prevent predicted and future attacks. With the increasing threats of hackers mishandling your data, blockchain is an advanced shield to prevent data security beaches. If you are still not taking steps to protect your valuable data and IT infrastructure, rethink the tremendous amount of damage hackers can do if they gain access to it.

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