What businesses don’t know about the dark side of blockchain – TechTalks

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Entrepreneurs should take a cautious look beyond the hype surrounding blockchain and assess the true capabilities of the innovation at this early stage in its development.

In theory, blockchain has enormous potential for business applications. However, once you see beyond the holy grail hype of blockchain theory, you may experience a sobering epiphany.

Since Satoshi Nakamoto’s 2008 unveiling of the technology, researchers have supported blockchain as a viable security solution in a world where humans are struggling to keep up with technology.

All the numbers add up on a whiteboard, but so far applying the technology as a security solution has proven much more challenging than conceptualizing various use cases.

A blockchain-powered future

Hypothetically, blockchain could disrupt information management across a range of industries. The technology can enable enterprises to manage data with heightened efficiency and transparency.

What blockchain currently does well is shift trust from people to technology. However, it will never eliminate the need for human intervention. Any practical application of blockchain must work with some variant of traditional information management.

The decentralized nature of blockchain considerably enhances data security. Also, because blockchain does not incorporate identifying information, it’s inherently anonymous. Moreover, there’s a built-in trust component with blockchain because of the decentralized network of computers needed to resolve its complex algorithms.

In logistics, for instance, supply chain companies could use blockchain to track the movements of goods from manufacturers to the end-user. The technology would also simplify the transfer of shipments.

Alternatively, manufacturers could use blockchain to ensure quality assurance and conduct investigations with ease. Also, blockchain could prove useful for accounting because it protects data from tampering. It produces an audit trail that…

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