The brighter side of Block-chain technology. Why Walmart, FedEx, and IBM have adopted it so quickly?
What caused block-chain technology to evolve?
We are living in a time where all type of companies, either a giant tech company or a small business startup, are highly relying on big data. Big data is nothing but the collection of a large number of data which can not be analyzed with the traditional data-processing application. By diving into the big data, companies can understand the customer’s behavior, and based on it, companies can make a more profitable business model to generate more revenue. In fact, almost 61% of companies have stated that they need big data to streamline the business. Thus, it is pivotal for any company to look after their big data. But here what all companies are concerned most is how they make sure that this much of data remain secure and untouched by unauthorized people. In a more broader way, big data had following threads which needed to be compromised.
- What type of authority of big data needs to be shared and with whom.
- In cyber communication, how to make sure that nobody is interfering in it.
- And how data can be stored online where an unauthorized person can not reach, and even somehow he reaches there, how we make sure that the data can not be edited.
This all problem related to big data caused the birth of Block-chain technology.
What is block-chain technology?
Let me keep it very simple.
The blockchain is a more secure and reliable way of storing the data. Any data in the form of a block is shared among the block-chain network which is nothing but a LAN connection between more than 2 computers, sometimes known as a cluster. Anyone who is connected in the network can see the data, but not able to edit it. In order to edit it, he needs to have permission from all those computers which are connected in the block-chain network. Apart from this, in the block-chain technology, hash cryptography is applied on whatever the data is in the block which makes it beyond pliable.
The popularity of the block-chain technology.
- 65 percent of large enterprises have admitted that they are developing a block-chain environment within the business processes.
- In 2018, $2.1 billion has been spent on block-chain technologies.
- On linkedIn, Block-chain technologies related job has been tripled in the last couple of years.
- It is the estimate that global block-chain market can reach up to $20 billion by 2024.
- Finance services are using most of the block-chain technology. Study the following graph to know more about the block-chain industry’ market size in the US.
- 69% of banks are currently using block-chain technology. By adopting it, it is a report that $8 to $12 billion banks are saving annually.
Now, let’s quickly understand why block-chain technology is rising so fast?
Properties of Block-chain Technology
Block-chain technology has the top-notched characteristic which takes safe data storing to the next level. Let’s understand, which are the properties of the block-chain technology.
- Hard to breach
In the past, data of big companies like Yahoo and Uber has been stolen by hackers.This becomes very common nowadays as companies use some primary level of the firewall on servers to make it protected. In an honest way, this simply doesn’t work. But by using block-chain technology, it is very hard for hackers to breach the data as data is stored with the hash function of the cryptography. For an example, if a data contains ‘name’ then, it becomes, ‘3fab92f4525ef9179557f5c385c4749b’.
- A decentralized method of saving data
Companies are using two types of methods, centralized and decentralized, to store the data. But centralized data is having a few disadvantages over decentralized data. In the centralized data, all data is stored in a single place. Now, can you imagine how stupid this decision is? A small change or breach in the centralized data can disturb the whole operation of a company. Meanwhile, in the decentralized data, the same data is stored distributed way, in a peer to peer network. By doing this, if data of one peer network becomes infected, all other data of peer network remain safe. Also, in the block-chain technology, only after getting permission from all nodes of the peer network, one can edit the data.
- More privacy
Data of the block-chain remains sharable with all nodes of the peer network and they are notified with every change in the data. But there is some sort of privacy too. For Example, if you are sending some amount of money to someone over block-chain, then it only shows the amount, not the names of sender and receiver.
Because of these characteristics of the block-chain technologies, some major companies have adopted it in their business processes.
Top companies which have adopted blockchain technology.
Insight into the company
Walmart is the USA based multinational retail corporation which operates brick and mortar grocery stores across the USA and many more countries, and also does business through mobile app and website. The company is having $219.295 billion assets with $512 billion of revenue.
Why Walmart adopted block-chain technology?
A success rate of Walmart highly depends on the proper organization of the products. Time took to know the source of the product was relatively very high. Sometimes, it took up to 7 days. By introducing block-chain technology, it becomes easy for Walmart to know the source of any product in seconds. This is useful to plug out a duplicate product or infected product and deliver the best user experience to the users.
Apart from this, Walmart wanted transparency between business partners. Walmart wanted a safe platform where all business partners can see and update the products. Through block-chain technology, Walmart achieves it. Walmart brings all business partner on the same platform where without the permission of all business partners, nothing (data of product) can be changed.
The first product Walmart traced by using block-chain technology was spinach.
Insight into the company
FedEx is the America based multinational courier delivery service, founded in 1971 and having HQ in Tennessee state of the USA. In 2018, the revenue of the FedEx is $65 billion, with net income of $4.572 billion. Currently, FedEx has almost 500000 employees.
Why FedEx adopted Block-chain?
According to the vice president of the strategic planning and analysis, Dale Chrystie, FedEx was looking for some sort of more advanced tracking system, which lets them to track the parcel in no time. They were also looking for enhancing user experience in term of reducing the number of the lost parcels and delayed parcels. By adopting block-chain technology, all details of the parcel from the sorting facility of the FedEx till the package gets delivered to the customer can be stored in a secure way on a platform which can be seen by FedEx team, delivery drivers and customers.
FedEx has the fleet of 384 planes, more than so many commercial airlines.
Insight into IBM
IBM is a New-York based company, founder in 1911. Currently, IBM is active in the business of 177 countries, having almost 400000 employees. In 2018, IBM has generated revenue of around $80 billion. A major percentage of the revenue comes from the selling of hardware, middleware, and software.
Why IBM adopted block-chain?
IBM wanted a solution for its cloud-based services where all transaction occurs on the high speed and securely.Additionally, IBM desired that all the users can update the data on the cloud with minimal effort. Thus, by introducing blockchain technology, IBM becomes successful to create block-chain based hardware and software where data sharing is more secure and easy.
IBM has not only adopted block-chain technology but helping other companies to build the block-chain network.
Thanks to a few paramount properties of the Block-chain technology, it is no doubt that Block-chain technology will affect the tech industry on a large scale. Companies can make their data secured and distributed to make sure they will never suffer from data loss. A proper tracking system can also be developed with block-chain technology. Medical, banking and logistics industry will get the power to track almost anything which is on the block-chain network. This is how, our world will come under a single system in which data storing, data editing and data tracking will become immovable, quick and effortless.
About the author:
Vishal Virani is a Founder and CEO of Coruscate Solutions, a leading mobile app development company. He enjoys writing about the vital role of mobile apps for different industries, custom web development, and the latest technology trends.