Blockchain and the cryptos associated with it have been mainly viewed as a means of payment for businesses.
But there are many other benefits of using blockchain technology and it’s important for companies to know how to make the most of it.
A lot of blogs and websites raise the issue of using blockchain to the fullest in different industries. For example, IBM’s blog reveals the use cases for blockchain in healthcare and governmental supervision, while Deloitte focuses on financial services primarily.
There are also some interesting ideas in Katie Wager’s research on gambling with blockchain technology.
However, let’s not get so far ahead and explore industry-specific blockchain solutions one by one.
Business transparency is something that all companies need to consider and more consumers need to be concerned with.
This is one of the major benefits of blockchain that comes from the distributed ledger being the basis of this technology.
The ledger is distributed among all participants of the network. The shared information can only be updated when there’s a consensus, and every participant gets the latest version of the ledger.
The transparency also comes from the fact that it is almost impossible to amend data held in the blockchain ledger after it has been verified. If one piece of data is changed, all subsequent data will also be changed.
Any amendment would also require the entire network to agree upon it which is generally impossible to obtain.
Blockchain provides businesses with a transaction ledger which is more accurate and transparent. The consistency of blockchain is better than paper-based processes and cannot be changed with the same ease.
Reduction of Costs
Something that businesses are always looking to is reducing their operational costs. It will ensure that the business makes a greater profit and can continue to operate for many years to come.
With blockchain technology, you will be able to reduce the costs of your business in a number of ways.
When a business works with blockchain technology, the need for third parties and intermediaries is greatly reduced.
Their guarantees are no longer required when you are unsure about the trading partner that you are going to make a deal with. The blockchain will provide you with all of the data that you need for choosing a reliable trader.
The cost for maintaining contracts and other documentation will also be decreased when you utilize blockchain.
It will allow the business to use self-executing smart contracts that can be programmed to finalize when specific conditions are met.
Security is vital if you want your business to operate effectively and be seen as a viable partner for other businesses and customers.
There are a lot of ways that you can enhance your security, but the blockchain is probably the best among them. It provides you with a secure record-keeping system and can be used for secure tracking.
The level of transparency offered by the blockchain also leads to greater security because records that cannot be changed will make it harder for fraudulent transactions to be covered up.
Security is also enhanced when you look at the ways the digital ledger is stored. Generally, digital data will be stored on a single server which can be vulnerable to fraudulent activities and hacks. Blockchain ledgers are not held on a single server and are instead spread across the network which makes them harder to hack into. It ensures better security for the sensitive data that your business has.
There are certain industries where this additional security will be of the most help. They include healthcare, financial services, and government departments. These industries all handle highly sensitive data which can be used for fraud and other harmful actions.
Access to the blockchain ledger is regulated based on the permission granted by the administrator of the business which will help you track any attempts of fraud.
Speed and Efficiency
A trading process held on paper requires way more time for transactions to be completed. While this might be the industry standard, improving your speed and efficiency can place your business ahead of your competition.
It is also important to note that paper-based transactions are prone to human error which can cause more problems and delays for any transaction.
Blockchain offers a means of streamlining and automating the process which will make you faster and more efficient.
The speed improvement not only comes from the digital nature of blockchain but also from the fact that you will be using a single ledger. With paper-based processes, you will need to reconcile data in multiple ledgers and documents.
When access to the single blockchain ledger is provided, you will also increase the trust that people have in the business. This will make everything you do faster as additional due diligence will not be necessary. Clearing and settling contracts and transactions will become smoother, increasing the overall efficiency of the business.
The Benefits Are Clear
Almost all industries can benefit from the use of blockchain technology but in different ways.
The benefits that positively impact all businesses define the increase in transparency, security level, and speed of transactions.
The blockchain also provides better accountability and tracking for businesses where this is vital.