There is little doubt about it, the evolution of blockchain technology and emergence of cryptocurrency is having a significant impact on the traditional business landscape. Every industry is undergoing a certain amount of change as we move forward in the blockchain era. Despite a recent slide in the market, it is widely expected that the cryptocurrency market value will exceed $1 Trillion in 2018.
This continued growth is thanks in part to the evolution of the entire blockchain sector which backs the cryptocurrency market. Whilst many major companies are already engaging with the technology to continue their own growth in tandem, many smaller companies are just beginning to consider the impact of the blockchain on their industries. Not only the impact but also the opportunity. How then, is the evolution of blockchain impacting the traditional business environment?
One of the foundations of the blockchain is greatly enhanced security and transparency. This is at the core of almost every new project emerging in the sector. It comes as an integral part of employing blockchain technology.
This is an aspect which users greatly favor. There is a general distrust in traditional business models which are heavily centralized and not always transparent in their dealings. The nature of blockchain technology removes this. Thanks to this paradigm shift, it is also challenging traditional business models to be more open and transparent. This shift can only be of benefit to all users.
Removing Unnecessary Parties
A huge issue which we see addressed in many blockchain based projects is the removal of agents and unnecessary third parties. This serves to greatly reduce costs on both sides of almost every industry. This reduced cost of transacting within blockchain technology has knock-on results in more traditional sectors. Customers now come to expect a more competitively prices and expediently delivered service. Service agents such as Hotels.com will be challenged to cut costs or enter the blockchain for themselves in order to remain attractive to potential customers.
Enabling Direct Communications
The liberation of communications between customers and businesses is one of the great successes brought about by the blockchain revolution. Entry barriers are removed and communications are direct and efficient. Ultimately, this lead customers in traditional industries to demand a higher level of communication. Again, this can only be a positive move for traditional sectors and those positioned within them.