Blockchain technology is a disruptive tech by all means! It has changed the way how we perceive problems in businesses. It has been spreading its wings across various markets with its multifaceted use cases in every walk of our life. This technology has come a long way since Satoshi Nakamoto envisioned Bitcoin in 2008 leveraging its tech. If experts are to be believed, this tech is slowly but steadily leading us towards an ultimate decentralized future. The transformational capability of this tech can be gauged by the fact that mega giants like Amazon, Google, IBM, Microsoft are all either partnering with the Blockchain-based company or setting up a dedicated department to build a blockchain ecosystem for their respective companies.
The popularity of blockchain within businesses can be reasoned with the fact that it addresses the major pain point of the industry. The peer-to-peer network builds a solid trustless layer for businesses that takes the industry issues like disorganized supply chains, tempered pieces of information, heavily regulated business payments head-on. Blockchain benefits like- process automation, enhanced security, improved transparency, and efficiency were all long overdue for modern-day businesses.
The immense future possibilities with blockchain for modern business are indisputable. If implemented strategically, blockchain can foster disintermediation by removing all the intermediaries that clog the information flow in the hierarchy and add cost. Businesses can achieve these refinements by leveraging blockchain and creating immutable shared data records; the data quality can also be improved. These additions can completely transform consumer relations with businesses. Let us dive deep and unravel other dimensions of Blockchain benefits for modern-day companies.
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Simply put, Blockchain is a peer-to-peer publicly viewable ledger that is continuously updated, and new transactions are added every moment into the block. The data blocks contain encrypted information like the transaction date, time, and the participating party. These blocks are linked cryptographically to the previous blocks using a cryptographic hash, timestamp and transaction information to form a chain. This is precisely the reason why data on every block are immutable, as it cannot be reverse-engineered.
The core idea behind blockchain usage is to ultimately solve society’s biggest challenge- Trust. Or, rather lack of it! The vision is to use blockchain in businesses and create a shared sense of trust within a group of participants. There is no central authority controlling this network; this is precisely the reason why it’s fascinating to imagine its impact on businesses. Everyone in the network will have access to the same data, which is transparent and can be reconciled regularly. The peer-to-peer distributed network forms a truly trustless and permissionless network that businesses can leverage and overcome the issues that plague the growth of any organization.
Major Blockchain Benefits For Businesses
The trustless and decentralized feature of Blockchain technology can push the envelope of innovation and help businesses to grow. It can do so by implementing transparency, enhanced security, and greater traceability. Every industry is identifying the potential of blockchain and is in the process to adopt it into its organization in one way or the other.
Blockchain is among the fastest-growing IT technologies and is also among the fastest technologies to be mass adopted. Blockchain technology is being adopted in the Dubai Smart City 2020 project; this project has the vision to plan and build a smart city and marry the bleeding edge tech to make it the most ambitious project globally.
Blockchain technology can transform modern-day businesses and make them truly smart and efficient businesses. The massive real-world uses of this technology still remain untapped. Here in this section, we will unravel some of the key blockchain benefits that can propel modern-day businesses to a whole new level.
New Layer Of Transparency
Transparency in businesses and organizations is one big issue that hasn’t been addressed to date, courtesy the gross centralization. Centralization has become one single point failure whenever an attempt is made to achieve greater transparency. The fact that the transaction on the blockchain is publicly viewable and accessible becomes one key distinguishing feature in this scenario.
Blockchain is a distributed ledger in which transactions and data get recorded identically in every computer in the system irrespective of their location. It makes up for a perfectly transparent system as the network participants with permissioned access can view the same information. These records are immutable and are timestamped, eliminating the chances of any fraud.
Financial institutions like banks can leverage blockchain technology for knowing and verifying the customers. Just imagine a scenario where a Bank uploads the KYC details on the blockchain, which can be now accessed by other banks and verification agencies. It grossly simplifies the entire process and saves an enormous amount of men power and capital along the way. Blockchain can be effectively implemented for identity management in these financial institutions.
Business Automation Using Smart Contracts
Smart contracts are a self-executing block of code with instructions that finally get verified on Blockchain. Many organizational processes can be automated with smart contracts that, in turn, can increase productivity significantly. These smart contracts can greatly reduce human intervention. It can also reduce or even eliminate our reliance on third-party intermediaries, making it a trustless system.
Smart contracts are seen among some of the most formidable alternatives to make businesses more effective and efficient with minimum third-party intermediaries. Smart contracts are now impacting the world of finance, healthcare, legal industries, real estate and many more. The concept of DAO can genuinely bring about a revolution in the present model of the corporate structure. There are numerous dApps across the various blockchain networks, and they can utilize smart contracts in their own ways to different ends.
Organised Supply Chains
Globalization has made trade and businesses free of any international boundaries. The globally dispersed supply chains can source the raw material from one corner of the world and assemble it in another corner. These supply chains are complex interconnected networks interdependent of various intermediaries. Any error at any stage has a domino effect on the entire supply chain to the extent of bringing the entire supply chain to a halt.
Blockchain technology can help businesses track the history of items back to their source and have concrete knowledge about the product. The immutability of blockchain is the feature that is leveraged for the purpose.
Multinational Retail chain Walmart is all set to infuse blockchain technology into their supply chain. Walmart is looking to strengthen their already flawless supply chain leveraging blockchain. Maersk, the global shipping company, has also begun testing blockchain to track their consignments. Protocols like Vechain is perfectly positioned to take the supply chain dilemma of the businesses head-on.
Reduced Cost Of Business Management
Businesses tend to invest an insane chunk of their budget on strengthening and re-energizing the current organizational system in the pursuit of a better-managed business setup. Despite the energy and capital put in, sadly, a concrete business organisation design is still a distant dream.
Blockchain can bring down the cost of business management by cutting through the intermediary parties, automating the processes and limiting the human intervention in the businesses. This saved capital can be reinvested into doing businesses that cater to the core goal of the business.
Right now, businesses spend a lot of money to improve to manage their current system.
Hasslefree Payment Processing
Among many aspects of the businesses that blockchain can transform the payment processing is that one aspect which it could truly transform and ease out the procedures. Businesses are going through the phase of a digital revolution, but payment processing is something that is somewhat lagging.
The large-scale adoption of blockchain technology has somewhat led people to realize the payments via blockchain. Blockchain can facilitate low-cost international payment processing that is fast and secure. It uses the encrypted peer-to-peer ledger where the transactions are verified in real-time without any intervention of intermediaries like banks or clearinghouses.
The above facts clearly establish that the blockchain is highly secure for financial transactions. Businesses can therefore opt for blockchain in their payment processing for their operations. These are some of the Blockchain benefits when it is used for payment processing in any business:
- The instant and easy settlement process
- Preserves the authenticity of the transactions in the absence of any intermediary
- Peer to peer transfer of fund
- A high degree of transparency is guaranteed.
Blockchain is capable of changing the way sensitive and critical data of businesses is viewed. The immutable nature of on-chain data acts as a shield for any attempt of data forgery or data manipulation. The on-chain data of businesses can be easily anonymized to ensure data privacy. The data stored on the blockchain is free from the threat of any hackers and it is highly improbable or non-feasible to gain control of more than fifty percent of the computer in the network.
Blockchain is leaps and bounds ahead of the traditional record-keeping system in businesses. The decentralized structure of blockchain makes it a trustless network meaning the individuals don’t need to necessarily trust in order to engage in business activity.
Enhanced Speed And Efficiency
Blockchain in businesses strives to eliminate the middlemen from numerous operations. The old processes are obsolete; they are time-consuming, more prone to human error, and require third-party mediation in the majority of the cases. Blockchain can automate these processes and gather considerable momentum on the efficiency front.
The distributed digital ledger overcomes these issues by storing the transaction in a single place. The streamlining of these aspects with blockchain makes the entire process highly prudent and efficient. The decentralized aspect of blockchain builds trust among the stakeholder in the businesses.
Build Your Own Project On Blockchain
Blockchain is no doubt the tech of the future. The entire web3 is being built on it. Thousand of Projects, protocols and new businesses are conceptualized on the blockchain every day. Each one is set out to solve a different existing problem in their own way. Some make their way up to fame and popularity while rest fade into oblivion. The projects that couldn’t make their way to prominence don’t necessarily mean it was light on innovative ideas and approaches.
Blockchain is a highly competitive and crowded space. If you do not find a way to walk apart from the crowd in your initial stages, there are high chances you will get run over by the other in the stampede. That’s the cruel picture of the space right now. To put your best foot forward along with your idea, You need someone with expertise and experience that can place you in the space at a commanding spot. Crypto marketing agencies do precisely that with the projects in their nascent stages.
Blockwiz is a team of growth hacking professionals that lends these Crypto projects the necessary expertise to zoom past their competitors and always be a step ahead of them. Connect to the Crypto marketing Gurus Now, and let them help you and your project scale the height of success you always dreamt of.
Blockwiz is a team of highly experienced Crypto experts with the experience of working with some of the well-known formidable crypto heavyweights. Their targeted marketing strategies for the clients have consistently yielded exponential all-round growth.