Blockchain Technology
Info Tech in a Global Economy
September 18, 2021
Blockchain technology has created its niche as a decentralized, distributed ledger that records the provenance of digital assets. Its strength comes from the fact that data on a Blockchain can’t be changed, making it a real disruptor for firms in fields like payments and cyber security. In another way, a blockchain is a public digital ledger of transactions that has the potential to store data in a way that is impossible to hack or manipulate. Moreover, the technology allows a secure way for individuals to deal directly with each other, without an intermediary like a government, bank or other third party.
In this regard, and as the article Blockchain Technology and its Impact on the Global Economy notes, Blockchain is the most sought-after resource in the business world. A review of this article brings numerous insights regarding the extent to which Blockchain has revolutionized business transactions, management as well as operations. According to this journal, Blockchain is seen to be the most significant technical innovations in digitalization of asset ownership. According to Sakz and Gencer (2019), the most effective blockchain applications would necessitate close collaboration among developers, incumbents, innovators, and regulators, which will add complexity and postpone adoption. The Blockchain ecosystem, according to them, enables a completely distributed system for cryptographically collecting and preserving an immutable, consistent, and linear event log of transactions amongst networked global entities. As Yaga et al. (2019) point out, this is analogous to a distributed ledger that is stored, updated, not deleted, and validated by all parties involved in a business network’s activities.
To them, Blockchain technology which currently is receiving a lot of academic and public attention aims to constitute a strong foundation for truly trust-free economic transactions. Without a doubt, Blockchain systems can not only execute monetary transactions, but also verify that transactions follow programmable rules in the form of smart contracts, which may include global business participants. In this regard, the article therefore clearly points that Blockchain technology allows parties to conduct and reliably control mutual transactions without requiring any trusted middlemen.
The underpinning statement that Sak?z, and Gencer highlight in their article is that, Blockchain technology promises to revolutionize the way of business. Being the trust machine that businesses know it to be, it takes care of trust issues between individuals. The article notes that Blockchain is an open-source ledger that is visible to users across networks. Therefore, it brings a level of security that is unmatched. Moreover, it is justified to assert that Blockchain puts the trust in its users and their ability to maintain the ledger. This is like saying that the Blockchain technology built economic system can run without people. Therefore, the transactions made in the system can be said to be trust-free from trust issues.
The article also highlights that the Blockchain technology provides a viable alternative to eliminate middlemen. This means that the operational costs are lowered while the efficiency of a sharing service is increased. It is a secure system where businesses can carry out transactions of all sorts without the need for a central or trusted arbitrator. Therefore, as Li et al., (2018) note, Blockchain technology allows the worlds most fundamental commercial interactions to be re-imagined.
As a result, it is justified to say that Blockchain causes many opportunities to invent new styles of digital interactions in trust-free sharing services. It is imperative to note that from this article that the Blockchain technology or the ledger that underlies the famous cryptocurrency in the name of Bitcoin has huge implications for many industries, businesses and even administrations. The advent of the blockchain can therefore be acclaimed to have brought a lot of change to the world of global finance and business. Overall, it is an essential financial tool that has the ability to contribute significantly to the long-term development of the global economic environment.
It is also worth emphasizing that the present scientific literature on blockchain technology, including the peer-reviewed research, demonstrates the growing necessity to take use of Blockchain’s benefits. Such articles provide a deeper understanding of the nature and scope of the extant potential in blockchain technology in the particular context of global business organizations. All the findings in the peer reviewed journals such the one highlighted here reveal that Blockchain technology works for the best interest of the business organizations. The organizational motivations for adopting Blockchain technology in the businesses is to secure their transactions, improve their management and boost operations in ways that stakeholders and shareholders find best serving their interests.
Finally, as Blockchain technology becomes more integrated into the finance and financial services industries, crypto currencies become more popular, and the potential for additional Blockchain applications grows, industry participants are likely to face increased regulatory scrutiny, even as the regulatory landscape shifts and evolves with the technology. The global business community involved in Blockchain-related activities and virtual currency transactions should understand the key aspects of Blockchain technology, learn to identify conduct that may be regulated, and follow best practices to ensure that operations, management, and transactions run smoothly.
References
Li, Y., Marier-Bienvenue, T., Perron-Brault, A., Wang, X., & Paré, G. (2018, January). Blockchain technology in business organizations: A scoping review. In Proceedings of the 51st Hawaii International Conference on System Sciences.
Sak?z, B., & Gencer, A. H. (2019). Blockchain Technology and its Impact on the Global Economy. In International Conference on Eurasian Economies (Vol. 10, p. c11).
Yaga, D., Mell, P., Roby, N., & Scarfone, K. (2019). Blockchain technology overview. arXiv preprint arXiv:1906.11078.
