Blockchain and the Future of Business
What Is Blockchain?
New and innovative technologies are constantly being developed and integrated into businesses, and some are so impactful that they’re reshaping entire industries. Blockchain is one of those technologies—and it’s poised to revolutionize business in ways that future professionals will need to understand. But what is blockchain?
At its core, blockchain is a digital transaction ledger that can only be updated with new information. It operates on a decentralized, peer-to-peer network, meaning transactions occur directly between users without needing a middleman like a bank or payment processor. It’s a secure and efficient way to track transactions that’s available to everyone on the Internet. Information is stored in blocks, which can’t be changed. The blocks are linked together to form a chain, making past records permanent and unalterable.
Think of it like Google Docs versus a Word document—while the information is available to everyone with access, only authorized users can add to it, and previous entries can’t be changed. Cryptography links the contents of the newly added block with each block before it, which means that a change to any previous block in the chain would invalidate all the data that came after. To prevent fraudulent transactions, blockchain networks use verification processes, where multiple computers must agree on a new addition before it’s accepted. This technology is increasingly used in business beyond cryptocurrency, in fields like finance, healthcare, and supply chain management.
What Is Cryptocurrency?
Cryptocurrency has been a buzzword for years, but what exactly is it, and how is it connected to blockchains? Unlike traditional money you can carry around with you, cryptocurrency is a digital currency that can be traded or exchanged online. Users store cryptocurrency in a digital wallet that allows them to send and receive payments securely. Most cryptocurrency transactions are recorded on a blockchain network, ensuring immutability, transparency and security.
There are currently thousands of these digital assets. Bitcoin is the most well-known but others like Ethereum and Solana are also popular. These cryptocurrencies enable decentralized payments and power blockchain-based applications like NFTs which are one-of-a-kind and noninterchangeable. While debates continue over the long-term stability and regulation of cryptocurrency, investors remain drawn to its potential for high returns, and its impact on digital transactions is undeniable.
How Blockchain Is Transforming E-commerce
With the rise of blockchain technology and cryptocurrency, the potential for the way e-commerce operates is greatly shifting. More transparent transactions, enhanced security, and the removal of intermediaries could lead to major industry changes as blockchain technology continues to become more widely accepted. Blockchain applications are also becoming increasingly user-friendly, allowing e-commerce businesses across a variety of industries—from software companies to clothing retailers—to integrate the technology and transform their payment platforms. Experts predict that as blockchain becomes more accessible, more companies—including startups—will utilize the technology to securely set up e-commerce systems. If that sounds intriguing, now is a great time to learn more about becoming an entrepreneur and how blockchain can support new business ventures. Even as the future of blockchain and cryptocurrency continue to evolve, one thing is clear: E-commerce is changing, and blockchain is playing a significant role in its future.
How Blockchain Affects Big Data
Blockchain technology is having a major impact on how companies collect and utilize big data. With decentralized blockchain applications, businesses can rely on secure, verified data coming through their website, reducing the risk of fraud. One challenge is ensuring the scalability of blockchain applications to process vast amounts of big data efficiently. Instead of identifying and reviewing fraudulent transactions after the fact, financial institutions can use blockchain—like Bitcoin does—to monitor purchases in real time and stop unauthorized transactions as they are happening. As the future of blockchain and big data continue to evolve, their integration can create more secure systems—benefiting both consumers and businesses alike.
Applications
Several industries are already utilizing the benefits of blockchain technology to their advantage. From finance and supply chain management to healthcare and education, blockchain is improving security and reducing fraud. As the technology continues to evolve, even more industries could benefit from blockchain applications in the future.
Smart contracts
Blockchain is a game-changer when it comes to streamlining legal transactions. Lawyers are increasingly using the technology to create smart contracts, which automatically generate terms, track parties and ownership transfers, and can even confirm the delivery of goods and services. This automation eliminates the need for physical intermediaries, making smart contracts more efficient, secure, and cost-effective.
Supply chains
Transparency is critical for supply chains—and blockchain technology is enhancing it like never before. As a distributed ledger technology, blockchain enables real-time access to shipping tracking, delivery status, and logistics updates for companies, suppliers, and customers.
Energy
When it comes to energy transfer and distribution, blockchain technology can be used to simplify the process. Data is sent, validated, and redistributed while ensuring that payments are secured.
Healthcare
Record transfers are more efficient when patient data is stored using blockchain applications. Doctors and other healthcare professionals can access essential medical data and share it with insurance patients, providers, and even justice departments or employers when appropriate. Having organized and cohesive patient records helps reduce the risk of misdiagnosis, and blockchain’s advanced security means sensitive patient records are better protected from breaches.
Retail
Retail and e-commerce transactions have also been streamlined with the help of blockchain technology. Recording product details, shipments, and payments makes the process more efficient for retail businesses while also providing customers with order tracking and payment security.
Insurance
Blockchain can help streamline insurance audits and claims processing by automating the verification of vehicle information. It can also be used with smart car technology to improve communication between vehicles and insurance companies, potentially reducing accidents and lowering premiums.
Travel and hospitality
Travel documents and ID cards could become a thing of the past as blockchain-based applications are able to securely store and verify traveler information. This enhances security and ease of use for both travelers and businesses, while simplifying the check-in process.
Education
The use of blockchain is emerging in education and the potential is significant. Academic institutions can use blockchain to securely collect and store data on assessments, degrees, and transcripts. It also simplifies credit transfers between schools and makes it easier for employers to verify credentials.
Learn More About Blockchain and Business with WGU
Is blockchain the future? Blockchain technology continues to evolve, reshaping industries from finance to supply chain management. As businesses increasingly integrate blockchain, understanding its impact is essential. If you're interested in getting into this in-demand industry, a bachelor’s degree in finance from WGU provides a technology-forward education with courses in financial modeling, fintech, blockchain, digital currency, automated trading, AI, and more. Whether you’re pursuing a degree in business, finance, or another field, WGU’s fully online, competency-based programs are designed to keep you ahead of industry trends and provide real-world skills that employers value. Explore WGU’s business degree programs.
