BayaniChain

Moving Traditional Business to the DeFi world

Moving Traditional Business to the DeFi world

We all remember then-Google CEO Eric Schmidt’s first mainstream mention of the term ‘Cloud Computing’. The idea that you can significantly reduce capital expenditure by utilizing off-premise computing services meant that businesses could forego the rising costs of energy, computing infrastructure, cooling services, securitizations while having access to improving computing power which allowed them to further scale their operations more efficiently than investing in on-premise technology.

 

This business model gave rise to highly profitable ventures such as Microsoft Azure, Amazon Web Services, and Google Cloud Platform together with many other similar platforms. As of date, 95% of Fortune 500 companies are now using Microsoft Azure to grow their businesses. Cloud computing’s ability to solve the limitations on the computing side enabled economies to scale much faster.

 

As technology progress, the world becomes increasingly aware of the economic and security vulnerabilities bought by corruptible data. Consumers of the web started to call and cry for increased data security and transparency. 2021 saw 1,291 data breaches, an increase from 2020’s 1,108 breaches and even more so from 2017’s 1,529 breach incidents.

 

Consumers now fear that corporations are being less and less transparent about reporting these breaches while companies struggle to invest for centralized server security. More investment follows marginal returns, as hacking methods become more efficient in data system penetration. The companies’ priority should be on solving issues on data storage, security, and management to continue establishing trust from their consumers.

 

Web 3.0, or the decentralized web, presents the business world with a tool for securing their data. The distributed and decentralized ledger technology present in blockchains enables security improvements on the server side. Consumers are provided the ability to view how the network uses their data across the chain. In return, it creates transparency and trust that continues to lure more investors and supporters onto the blockchain. The Web 3.0 model features 

 

Blockchain’s distributed and decentralized ledger technology enables security improvements on the server side and al. By embracing blockchain technology, enterprises can build applications to be distributed across blockchain nodes rather than having them on servers owned and managed by a single authority. This results in a network full of transparency and data integrity.

 

Errors or falsification in the chain can quickly be detected and the responsible party can easily be identified. Appropriate actions can then be immediately done to correct the process. The automotive industry in particular has never shied away from this innovation. In fact, with blockchain networks, car manufacturers can easily locate missing or counterfeit parts, streamline vehicle inspections and thus speed up and increase production. 

 

Aside from this, Web 3.0 allows enterprises and consumers to transact with each other by removing the use of middlemen. This means businesses can directly negotiate with other businesses and suppliers as well as consumers without unreliable third parties. Blockchain’s infrastructure supports transparent and efficient transactions by introducing faster and secure payment solutions while preserving verifiable and immutable records.

 

Smart contracts allow the system to execute transactions upon meeting predetermined conditions and eliminate the people factor. Suppliers and retailers can use smart contracts to ensure supply chain visibility and easily resolve disputes through real-time communication hence, creating relationships built on trust.

During the start of the pandemic, government authorities forced many sectors to halt operations and transactions. Since humans are prone to the virus, businesses have no choice but to limit the number of people in operation. The traditional chain of processing became impaired and more tedious without human intervention.

 

This made the process slower, less efficient, and prone to error as manpower constitutes most of the logistics and production. Blockchain networks on the flip side offered solutions to the problems. As blockchain networks become embedded in the production system, manufacturers and businesses will be able to reduce operational costs. Productions will be ramped up as errors are lessened or even averted. Every item in the manufacturing process undergoes a meticulous inspection and cross-checking within the blockchain resulting in high-quality items. Logistics on the other hand will be more streamlined and safe since updates can easily be recorded on the network and every participant can view it right away. 

 

Although the adoption of blockchain technology has been growing for the past years, it may take some time before the full implementation of blockchain in all sectors. Deloitte’s Insights 2020 Global Blockchain Survey shows that 39% of the 271 respondent companies say that their companies already jumped to the blockchain trend compared to the 23% from the 2019 survey. Surely, a 16% increase in blockchain implementation is a huge jump; however, there are still companies that are skeptical about the features and also the pitfalls of the current blockchain tech. 58% of the surveyed industries are concerned about cybersecurity especially in the era of digital space, enough that 21% of them acknowledge the issue as a legitimate concern that can hinder in their progress in blockchain and digital asset adoption.

 

Take note that blockchain has its inherent cryptographic measure that somewhat assures safety from cyberattacks. Additionally, its distributed nature offers a degree of transparency that allows for the detection of attacks in the system. Aside from this, the absence of established regulations concerns and troubles the industries. Since blockchain architecture surpasses borders and spans different countries, governments implement their own regulations and positions on the tech.  Other states establish laws differently from other government authorities which may or may not be in favor of the innovation.

 

Despite the fact that such an issue exists, industries are confident that they will be able to meet regulatory guidelines and see it as a challenge. The rapid adoption of blockchain networks will soon push authorities to address the lack of regulatory harmony and work together to establish the best practices. 

 

Web 3.0 and blockchain technology proves time and time again that they are the future. True enough that there are issues to be addressed but it is also a fact that the system continues to innovate itself in order to surpass its boundaries and address the raised issues. Blockchain was once perceived as merely a foundation for cryptocurrency.

 

Today, world and industry leaders recognize it as a powerful solution that enables the development of different sectors of businesses. The same people are confident to invest millions in this technology and believe that blockchain systems will continue to gain traction and revolutionize the global business community over the next few years.

 

Reference:

https://www.ibm.com/topics/blockchain-for-business

https://www.ibm.com/ph-en/topics/smart-contracts

https://www.investopedia.com/tech/forget-bitcoin-blockchain-future/

https://www.forbes.com/sites/forbesbusinesscouncil/2021/08/04/how-businesses-can-keep-up-with-defi-disruption/?sh=7e96a4855584

https://www.frontiersin.org/articles/10.3389/fbloc.2021.610476/full

https://www2.deloitte.com/content/dam/insights/us/articles/6608_2020-global-blockchain-survey/DI_CIR%202020%20global%20blockchain%20survey.pdf

 

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