According to Statista, spending on blockchain
solutions is expected to grow from $4.5 billion in 2020 to $19 billion in 2024.
But why is this technology so exciting, and what does it offer businesses? On
this occasion, we will tell you what Blockchain 4.0 is and the opportunities
you can access through these solutions.
A blockchain or chain of blocks is a database
that is transmitted between nodes on a computer network. It works as a
distributed ledger (DLT) that stores information electronically.
The main feature of blockchains is that they
guarantee the security and trustworthiness of computers. And without this need
to trust a third party to intervene! Thus, they play an important role in
cryptocurrency systems, since they make it possible to keep track of
transactions in a decentralized way.
The purpose of blockchain is to facilitate the
recording of digital information. But without the risk of it being maliciously
edited or destroyed. How is this achieved?
When data on a blockchain is changed, the record
is stored in a new "block". The stored transaction is then encrypted
using the hash. If you're not familiar with the term, it's an encryption
function that generates a code with a fixed length, making it nearly impossible
to guess. It strengthens computer security.
Now, new blocks of data do not overwrite previous
ones but are added together to keep track of changes. It is important to
understand how blockchain works: any unwanted tampering can be recognized and
When new data is added to a blockchain network,
most nodes must verify and confirm the validity of the new data. If there is a
consensus, a new block is created and added to the chain. Afterward, all nodes
are updated to reflect the most recent ledger.
applications in companies
Blockchain technology and DLT can create
interesting opportunities for businesses. Here are some examples of its use
that we can extrapolate to a business context:
1. Improvements in KYC (Know
Your Customer) processes
Many companies rely on identification processes
to attract and retain their customers. But these processes sometimes generate
high costs or take a long time.
DLT-based systems can help improve the
transparency of these processes and the customer experience. Also, they reduce
costs. Because it is possible to boil everything down to only one identity
verification per client.
2. More profitable transactions
Digitizing records and issuing them on blockchain
saves time and money.
In one case study, a $100,000 letter of credit
transaction between two companies that took up to ten days was reduced to less
than four hours with a blockchain-based solution.
3. Automation of processes with
Smart contracts are computer code that verifies
and enforces the negotiation of a contract.
If the conditions are met, the conditions are
processed automatically, helping to save time and money on paperwork.
For example, a distributor of products can
streamline their processes by registering them in smart contracts. The
distributor agrees to ship a certain number of products each month, provided
the customer pays by a certain date.
The smart contract will automatically process the
order if payment is made within the contract period.
the blockchain benefit e-commerce?
To better understand how blockchain can benefit
e-commerce, it is important to explore the reasons. Unlike other promises of
security and performance, blockchain does not rely on specific programs or
subscriptions to operate, making it a particularly valuable resource. We will
explain this to you in more detail.
Encryption is the foundation of security for
every block that makes up the chain. When a block is filled with data it is
closed with encrypted code. This becomes a unique password for user access.
Crackers are also very difficult to crack with programs that use alphanumeric
codes to decipher.
Thus, every transaction between an online
business and its clients is much more secure. They don't need to give their
personal data, just having their own wallet is enough to make secure purchases.
The same biometric registration through a single manager or electronic wallet
will be enough to guarantee the operation. Thus, it will be known that he is a
trusted user, but without needing to know his identity details.
Simplification of payments and processes
Businesses must pay a portion of their profits to
banks or platforms that handle payments. Sometimes they assume them as a loss
or pass it on to the client at the final price. Using blockchain and paying in
cryptocurrency removes this barrier. In this way, it is possible to adjust the
price with the customer and improve the profit margin for the company.
Transactions are made directly between merchants
and clients on the blockchain. You don't have to use intermediaries. This is
especially advantageous when trading abroad, as commissions are high. The use
of blockchain and cryptocurrency represents great savings in this area. Also,
they have no waiting time; They are done instantly no matter which country you
A major problem in electronic commerce is
consumer insecurity. Sometimes they go to the big online stores and discard the
smaller ones because they want to get the highest quality without the risk. The
blockchain can record the origin of each ingredient that makes up an article, a
spare part, or processed food. Traceability is essential to know whether the
quality is as promised. This validation can save online small businesses.
The traceability of a product is essential to
know whether a product is fully legal or not. It can also be a solution to
comply with specific guarantees for each sector and country. An auditor has the
opportunity to immediately verify the source and follow up the process. With
the full guarantee that there will be no subsequent manipulation of the
Decentralization adds security to encryption.
This decentralization means that information is stored on many nodes at the
same time and not on a single server. To reopen the file, it is verified on
multiple nodes, so if one breaks or becomes corrupted, the others will serve as
Validation of files or contracts and transactions
is kept on the decentralized chain. This guarantees that there will be no
damage due to any kind of breakdown or cyber attack. Nodes that work properly
will guarantee that everything in the blockchain network is always secure. It
ensures compliance with contracts and ensures additional security for
electronic commerce and marketplaces as well as their customers.
4.0: what does the latest generation offer?
Doing a brief review of the previous generations
Version 1.0 made the world of
Version 2.0 started the era of
With version 3.0 came dApps, which have various
use cases such as DeFi platforms, crypto lending, and NFT markets.
So far, blockchain has faced some obstacles, not
least, such as low speed. Few people have knowledge of the development of this
technology. And this is where Blockchain 4.0 comes in to innovate to solve
these problems and incidentally improve the user experience, generalizing the
So, in its version 4.0, the blockchain remains
visible. Because a business ecosystem is a platform that utilizes benefits such
as security, automation and immutability of records, and ease of performing
tasks such as payments and contract signing.
companies benefit from blockchain 4.0?
Now, companies do not need great experience or
special skills to develop, implement and use decentralized business
applications (DApps). In this way, they will be able to build applications by
setting up permission hierarchies and setting up self-executing contracts in
Undoubtedly, blockchain has the potential to
renew economic, social, and technological interactions. Thanks to its role in
data protection. It is a disruptive process that aims to transform entire
industries as it progresses, helping companies achieve more efficient and transparent