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Cryptocurrencies are on the rise and not just because of Elon Musk. Recent data indicates that more than 20 countries have adopted or at least researched the concept of a national cryptocurrency and according to the Deloitte blockchain survey, 24% of companies are expected to invest between $5 million and $10 million in blockchain during 2021. The global blockchain market is expected to reach $20 billion in annual revenues by 2024. Blockchain is expected to transform the face of financial transactions in a significant way. Managed Services Providers (MSPs) need to get a headstart on integrating the technology in their business models to stay ahead of the curve. If you are looking to implement block chain technology in your business, IT Consulting Vermont has an extensive repository of resources and tools for enterprises to use.
What is blockchain?
A blockchain can be understood as a form of distributed database or a distributed ledger. Transactions made on this ledger are publicly recorded. Each of these transactions are stored redundantly across multiple nodes. The benefit of blockchain technology lies in the fact that no single entity is responsible for the ownership or management of the blockchain. Moreover, blockchain allows for a degree of transparency that can be highly valuable for certain use cases. Blockchain has become part of the everyday parlance thanks to the popularity of Bitcoin cryptocurrency. But the applications of blockchain range far beyond the world of cryptocurrency.
What makes blockchain technology an attractive proposition for Managed Services Providers (MSPs)?
The benefits of blockchain specific to Managed Services Providers (MSPs) range from greater efficiency and security in handling payments, managing contracts, data storage and more. But the truth is that we haven’t even started scratching the surface of the potential of blockchain technology. In most countries, businesses across industries such as financial services, healthcare, government and others are still trying to implement the technology to enable disruptive products and services that transform traditional business models. While the business benefits are obvious including enhanced transparency, security, efficiency, speed, better traceability and significant cost reductions – many businesses including Managed Services Providers are still lagging in leveraging the potential of blockchain technology. IT Support Vermont can help businesses in Vermont leverage the power of blockchain through innovative use cases specific to your industry vertical.
Top 5 Ways MSPs can benefit from Blockchain Technology
Accepting payments in cryptocurrency
One of the many benefits of blockchain includes the ability for transactions to remain anonymous, but completely transparent. Enabling blockchain payments can allow Managed Services Providers to offer this amenity to clients who wish to remain anonymous. Accepting payment in cryptocurrency like Bitcoin or Ether also allows Managed Services Providers to offer clients more flexibility in payment options – while protecting their identities.
Blockchain offers a greater degree of security than almost any other form of record-keeping systems. The way blockchain transactions work is through prior agreement by both parties involved. This means that transactions are only recorded when they are already agreed-upon. Once the transaction is approved, the entire information is encrypted and linked to the previous transaction. This technique, combined with the fact that blockchains typically make use of a network of computers instead of a single server, provides unique security benefits. It is very difficult for hackers to compromise block chain transactions. The enhanced security offered by block chain technology makes it a highly attractive proposition for industries where protecting the integrity of sensitive data is critical. For instance, blockchain has enormous potential for use cases in financial services, government, and healthcare sectors where it can go a long way in preventing fraud and unauthorized activity. Financial institutions globally are estimated to have spent about $552 million on blockchain-powered projects already.
Gaining Trust at Storing Customer Data
Managed Services Providers often suffer from a bias from a certain section of enterprise customers who don’t trust providers enough to handle sensitive business information for management and monitoring. Many raise the dispute that the servers of third-party providers, such as Managed Services Providers, can be easily compromised with sensitive business information stolen or otherwise tampered with. This is a pain point for many customers because they do not have the ability to audit the data stored on the servers of Managed Services Providers. Blockchain technology offers a breakthrough solution in such cases as it allows Managed Services Providers to store the data on a distributed ledger, with careful monitoring of all transactions. This enables Managed Services Providers to leverage a level of trust and confidence in their services that was limited by the available technology till now. This technology also has enormous potential in backup and data protection services offered by Managed Services Providers.
There are many sensitive business processes that continue to rely on a heavy paper trail making them prone to human error, time consuming and resource intensive. A case in point can be trading processes that continue to require third-party mediation. Blockchain has the potential to streamline and automate these processes thereby enabling a greater degree of accuracy, efficiency, and speed. The best part is that block chain technology enables you to do all of your record keeping with a single digital ledger shared among all stakeholders. This reduces a tremendous amount of complexity and allows for greater clarity as there is no longer any need to consolidate or refer multiple ledgers. With all stakeholders privy to the same information, blockchain allows for a greater degree of transparency and trust between partners. This removes the need for intermediaries meaning that transactions can be completed much quicker and with a greater degree of ease and convenience.
Smart Contracts enabled by Blockchain
The Blockchain technology can also be leveraged for more efficient contract management by Managed Services Providers. Popularly referred to as smart contracts, this type of contracts is typically self-enforcing and allow for complete transparency for all parties concerned. This effectively minimizes the various risks traditionally associated with signing a contract.
About Steve Loyer:
Steve Loyer is the president and CEO of Tech Group, LLC. IT outsourcing Vermont company. With over 25 years of sales and service experience in network and network security solutions, Steve has earned technical and sales certificates from Microsoft, Cisco, Hewlett Packard, Citrix, Sonicwall, Symantec, McAfee, Barracuda and American Power Conversion. Steve graduated from Vermont Technical College with a degree in Electrical and Electronics Engineering Technology. Check out his blog at https://tgvt.net/blog/.