Businesses worldwide are committed to digital transformation as technology integration surges to an unprecedented high. It is becoming much more difficult to achieve growth without incorporating certain technological platforms into your business model. This has proven to be a challenge for some industries, as is the case within the banking and loan industries, but it has been relatively easy for others. If one thing is to be said about digital transformation, it should be said that incorporating blockchain technology into commerce is inevitable.
Incorporation of blockchain technology is crucial because it allows a seamless platform for currency integration, developer tools, and a set of plausible solutions for associated issues that go along with these technologies.
Giving Customers Control
Something that is always at the forefront of digital transformation and its associated risks is how technology will impact customer relations. For most businesses, digital transformation is often the right step if customers need to have access to greater service. It gives them an opportunity to speak with customer service professionals, access all relevant information, save money by decreasing the use of money-wasting practices, and be well informed regardless of the time of day. Blockchain only aims to increase these modes of customer control through innovative platforms.
Security is arguably one of the most important aspects of company-customer relations. A customer who knows that their personal information is safe generates lasting trust in your business, which in turn allows for customer recommendations. Blockchain technology, even in its initial stages, is proving to be one of the most secure platforms for housing information and currency.
Blockchain security works like this: Every interaction on the platform is recorded and each record in a transaction is tied to the previous. Unlike modern banking and healthcare platforms, which require that an interaction works with secure credentials, no changes can be made to blockchain interactions unless someone with unauthorized access figures out a way to change each piece of recorded data in an interaction individually. These pieces of data can number in the thousands in any given set. Leaving you there for a few thousand years trying to crack the first character.
Transparency in an Age of Confusion
The need for transparency in business actions comes hand in hand with security. The Equifax breach of 2017 is perhaps one of the best examples explaining why transparency is currently so important to individuals worldwide. While Equifax knew about the possibility of compromised customer information, they did not inform customers about this information until well after the breach had taken place. This posed a problem for the approximately 148 million people impacted. First, the transactions linked to their personal information were not available to them. Then, there was the problem of Equifax’s honesty – instead of letting customers know about the unauthorized transactions and the steps they took to control and repair the situation, Equifax instead chose to tell customers months after the initial breach. Blockchain solutions decentralize your data taking it out of a third party’s control and allowing you to have a transparent environment from start to finish.
By adopting a blockchain platform, industries that work with sensitive information – like healthcare and monetary-based industries – can avoid situations like the Equifax breach. Full control and peace of mind regarding company data is where blockchain solutions are starting to see an incredible value.
How Is Blockchain More Transparent and Secure?
Blockchain technology’s security is inherent in its name. When working with digital blocks, it is impossible for any transactions to take place without impacting the other blocks directly. Cryptography’s added security permits only verified users who have access to certain secure credentials. Unlike passwords, these credentials are based on the integrity of these immutable blocks – meaning that if any part of the block is compromised, then those credentials are essentially deemed useless. The “block” part of the blockchain equation is arguably what keeps it most secure. Anyone with the right credentials can have full informative clarity when monitoring their customer data.
However, in the event of a breach, the breach is then limited to that block. A hacker, in order to be successful, would not only need to have access to the credentials of thousands of different blocks, but would have to subsequently alter those blocks to make any sort of widespread impact like the Equifax breach.
Everything aside, what really makes this system more secure and more transparent is that it is decentralized – meaning that the entire dataset cannot be altered from a single point. Currently, blockchain developers are confident that data is secure enough under the layers of protection that blockchain platforms offer and it has far surpassed the security capabilities of modern technologies against being hacked.
Combining Learning Curves With User–Friendliness
One of the biggest issues those looking to integrate blockchain technologies run into is the issue of customer servicing. Blockchain technology takes some time to learn – for both businesses and their customers. It is a far more complex interface than traditional methods, but this complexity provides the increased security that the platform aims to provide.
Decentralizing information gives the power back to customers, but it simultaneously permits fewer people to have access to the platform’s vital information. Overall, this is a good thing, but strides are still being taken when it comes to servicing the many needs of blockchain customers. As emerging tech evolves and develops as does its ease of use. We will begin to see the blockchain adoption rate drastically increase as platforms become increasingly user-friendly and integrate seamlessly into our lives.
About the Author: Joseph Snyder
A serial entrepreneur for over fifteen years, Joseph Snyder is the CEO of the publicly traded, revolutionary blockchain development company Lannister Holdings, based out of Phoenix, Arizona.
Opinions expressed here by Contributors are their own.