What Is The Business Value Of Blockchain Technology?

Over the years the world of business and finance has always had one problem when it comes to scaling its product and services, until now, there has never been a solution to this problem because the infrastructures where these products and services were built simply allowed it to be easily influenced by a third party, thus, the process of winning against these challenges became extremely complex.

Permissionless Infrastructures

When it comes to business, the less control a third party has over the system, the better it is, but given the structural set of most current businesses, their building environments are larger "permissioned" thus very much exposed to internal exploits. You see, every system has its flaws, although centralized systems are known to be highly efficient due to the obvious case of central management, all isn't good with this structure of development, it only just gives room for internal attacks.

When a system is not open-sourced and decentralized like crypto businesses, the attack factor shifts to internal players and while people believe its better than having the system vulnerable to public attacks, the truth is that internal attacks have some level of immunity and can easily escape being caught because it's obviously an insider job and the infrastructures simply allows the parties involved to clear all trails.

That said, with a decentralized system, covering one's tracks becomes largely difficult because public matters have 10x the number of internal investigators and this brings us to the value of blockchain to businesses:

Traceability

Yes, a lot of people do not realize how difficult it has been to keep track of everything in a company ledger and sometimes system exploits may lead to some data being erased or manipulated. This has a three-way effect on the business because it exposes the company to certain monetary attacks, puts the employees in a position of losing their job and also puts customer or consumer information or data at risk, all of which effectively beats down the business's chance of survival.

With blockchain, a couple of these realities change. The idea of having a distributed ledger technology to power businesses and provide an alternate database for trade and service information means that the system is exposed to fewer internal attacks because firstly, there isn't a way for third parties to access the system's data from within and with encryption technologies, sensitive information can be kept off the public radar with maybe a multi-sig key security layer to ensure that these data is kept amongst founding bodies rather than employees.

Added to this, the ease of keeping track of trade and consumer data means businesses can scale much more easily because this simply takes away that layer of having to operate a ledger efficiently and still account for all the data within this ledger. Blockchain takes that burden away and simplifies the process by offering a tamper-proof ledger infrastructure for logging any amount of data and likewise easily accessing them when needed.

This builds a new layer of business reality because it cuts the bullshits of having to double-check and review a large amount of data sets just to verify some information, with blockchain, once the first query returns no result, it's settled that none of such related trade or service ever happened, or if it did, then it was processed off-chain so the employees are to be tasked for it. By this, businesses are assured to always have the full value of all business transactions moved to the company and accounts and not exploited by the internal parties who simply want heftier shares of the profit pie.