Originally known as the technology behind Bitcoin, blockchain’s potential now reaches far beyond cryptocurrencies. While Bitcoin was the first practical application of blockchain, its reach now spans multiple business sectors. In this article, we will explore the various blockchain applications for businesses to enhance security and transparency. Given the importance of staying ahead with these technologies, especially for SMEs, the DigiAdvance project offers a series of courses on Machine Learning to exploit its potential fully.
Blockchain, often described as a “chain of blocks,” enables the secure, transparent, and immutable recording of transactions, addressing some of the internet’s most pressing challenges in authentication and security. For those new to the concept, this video offers a simple explanation: How a blockchain works – Explained simply.
Beyond its role in securing cryptocurrency transactions, blockchain has found uses across various sectors, from supply chains to identity management. Blockchain is becoming a transformative platform, with protocols that could set a global standard for secure records and identity management. In 2016, the World Economic Forum recognised blockchain as one of its Top Ten Emerging Technologies, highlighting its potential to transform and enhance trust in industries and services worldwide.
Nearly 90% of businesses are adopting blockchain solutions
Globally, 87% of surveyed companies in the U.S., U.K., and China plan to invest in blockchain solutions within the next year. Additionally, 77 of the top 100 public companies worldwide are using blockchain, with many preferring Hyperledger Fabric as their framework. In Spain, enterprise adoption of blockchain technology is also progressing, with 10% of companies already working with blockchain technology. This trend is driven by small and medium-sized enterprises, with over 60% of microenterprises investing more than half of their budget in blockchain initiatives.
How Blockchain is transforming operations in key sectors
Industries everywhere are using blockchain to transform their operations, from payments to supply chains, proving its transformative impact. For example, blockchain is revolutionising cross-border payments, reducing transaction times from days to minutes and cutting costs by up to 40%. In supply chains, blockchain is enhancing transparency and traceability, helping combat counterfeit goods, which represent 3% of global trade, according to the OECD. For instance, Bumble Bee Foods uses blockchain to trace the journey of its seafood, giving consumers verifiable data on sourcing and production to build trust. Additionally, blockchain innovations extend into intellectual property management, as seen with IPwe’s collaboration with IBM to develop a platform that tokenises IP assets, making transactions faster, more transparent, and reducing costs.
Global investment in blockchain technology is rising quickly, driven by its power to simplify data exchanges between multiple parties. The impact and potential of this trend are clear.
SMEs can also benefit from blockchain: smart contracts, innovative payments, better tracking…
Despite its potential, a key barrier for many medium-sized enterprises (SMEs) adopting blockchain is their limited understanding of how to use it effectively. However, blockchain offers numerous advantages that can significantly enhance business operations, as illustrated in this video guide: SME guide on blockchain and DLT (distributed ledger technology). For instance, enhanced supply chain management is possible through greater visibility and transparency. Blockchain makes it possible to track every step a product takes, creating a more secure and trustworthy supply chain.
Additionally, smart contracts automatically execute, control, or document legally relevant events and actions according to the terms of a contract. This eliminates the need for intermediaries, helping to reduce operational costs while increasing trust.
Blockchain also offers improved payment solutions by facilitating secure, faster, and more cost-effective transactions. It minimises delays and reduces the number of intermediaries involved, thus enhancing the efficiency of payments.
When it comes to raising capital, SMEs can explore new financing methods such as Initial Token Offerings (ITOs), opening opportunities for growth and innovation outside traditional financing routes.
Moreover, data security and decentralised cloud storage capabilities within blockchain ensure that sensitive business data is protected from unauthorised access, tampering, and cyber threats. This decentralised approach allows businesses to maintain control over their data while ensuring high security and privacy.
Level up with DigiAdvance courses
Within the context of a rapidly changing digital landscape, advancing key digital skill capabilities in the SME sector is crucial to adapt to these trends. The DigiAdvance project aims to address digital skills gaps in the SME sector through the provision of low-cost, demand-driven, tailored training in key digital technologies for SME owners, managers, and employees.
With this objective in mind, DigiAdvance offers three dedicated courses on blockchain technology. The course on Blockchain Challenges and Issues addresses key challenges facing blockchain, such as scalability, security, and regulatory hurdles, providing strategies to navigate these issues. Blockchain Promises and Societal Impacts examines the potential of blockchain to transform various sectors and its broad impact on society. Finally, Obstacles Facing Blockchain Emergence focuses on the barriers to widespread adoption, including technical limitations, cultural perceptions, and policy-related challenges.
Blockchain aims to boost business security, efficiency, and transparency. In a world rapidly moving towards digitalisation, leveraging blockchain is not just beneficial—it is a necessity for staying ahead and maximising potential.