For many, blockchain is a buzzword that is heard but little understood. However correct implementation can make transformations to your business that can dramatically enhance your productivity, your business’ security and your bottom line. To read more about what blockchain is click here.
Blockchain technology is a system that was originally designed around network data security, however it’s application through Bitcoin raised its visibility to a global scale. Having proven itself a success, the business world is now wondering what blockchain technology can do for their companies or corporation, especially in Dubai where technological innovation is a driving force. More people are intrigued by this new development, and one key question comes into play: how much does blockchain cost?
To quantify its cost, we must first understand its application. Here are some of the more common functions that a blockchain solution can satisfy and some of the factors that make up its cost.
Contracts and document control
Writing, reviewing, amending and rewriting contracts are arduous tasks at best. Continual manual checks have to be made in the contract creation process which can cause a huge productivity and labour cost. Where blockchain steps in is with the authentication of the original document and a change management process, which provides 100% correct data. By using a network of nodes for authentication, the process cannot allow unauthorised changes to documents that are sent through this procedure. You can be confident that what you have sent has not been altered by any means.
The cost of blockchain, here, depends on the volume of data that is being transacted and the quantity of people within the organisation using the platform.
The financial application of blockchain is gigantic; it is already being used as a form of currency! However, it can also be used to process e-commerce payments through to paying the salaries of your staff. The benefit of implementing a blockchain policy here can affect costs directly. All payments using blockchain technology are verified and authenticated so there is no chance of double financing a transaction. Its levels of security ensure that an end-to-end encrypted payment is made. It also skips the barriers of currency fluctuations and avoids bank hold-ups for clearances. Within financially related companies, blockchain also carries the benefits of complete document control, as detailed above.
The cost of blockchain for financial companies will depend on the transaction amounts and the complexity of the payment processes involved. However, the benefits of implementing such a system far outweigh its costs. It can prove to be a game changer for your organisation.
Paying salaries via a blockchain solution is going to be a future force to be reckoned with. With this technology, you will be able to seamlessly transfer money to your employee without having to involve a bank, and their related charges. The money sent and received here will be proven with a full record and proof of transaction for each side. Also, currency fluctuations do not affect the money that is transferred.
When paying salaries and building a blockchain solution, the cost comes from the number and amounts of the transactions. The number of transfers will dictate the strength of the system required and the amount will define the complexity.
Third party integrations
One of the factors that can alter the cost of a blockchain solution is the third-party applications it need be synchronised with. Quite simply, it needs to be made to connect and function with each different third party, all with the same level of security that one would expect from the solution. This means that often the solution needs to be custom built to adapt with the third party. If the third-party application is also custom made, the application also needs to be evaluated and investigated to ensure compliance with this high level security solution, you wouldn’t want to employ a robust security system to only let it fail through a weak application. Often building a new solution with the end result in mind can be more cost effective than moulding a current software to fit a requirement.
One of the huge benefits of these types of systems are their ability to be used across devices, applications and software. With mobile being the driving force with respect to technological development, it is important that its application here is utilised to the maximum. Blockchain technology can perform tasks that reside on a company’s in-house servers, that requires functions to be complete from a user’s mobile device, whether it be a small company through to governmental requirements. The power here is that, again, the system ensures the absolute integrity of the data being sent and received. Governmental bodies are beginning to adapt these systems and can already see the enormous benefits of its application. No longer are they in the hands of fraud and tampering, their functions are verified as true and complete.
The cost of such solutions will vary with respect to the amount and complexity of the transactions being made along with the variety of systems requiring implementation. However, the price of the system will be completely outweighed by its functional performance.
When evaluating the cost of a blockchain solution, the functional requirement is important to understand. To get the best results from a blockchain solution it is always best to consult an expert company that can evaluate your systems and future requirements, so that they can provide a system that provides, not only, a solution to your challenges, but a way to make your organisation more efficient, more progressive and more secure.
To find out more about blockchain solutions, speak to one of our team at IXFocus…