6 applications of blockchain in your business
With blockchain on the rise, companies must adopt the new technology to disrupt old systems and change how we do business.
Blockchain is no longer the stuff of science-fiction. Blockchain technology is here, and it’s changing the way we do business. In the competitive business world, looking for ways to maximize revenue and streamline operations is crucial for success.
Blockchain technology will change how we run our businesses and improve systems to a whole new level.
Whether you’re a start-up or corporate giant, you can integrate blockchain into your business model and optimize your business. We’ll look at six ways you can apply blockchain to any aspect of your business.
What we’ll cover:
- Using Smart Contracts
- Improve Supply Chain Management
- Cheaper, faster Payments
- No More Middleman
- Securing Your Data
- Raising Funds
First, let’s take a brief look at what blockchain is all about
What is Blockchain?
Blockchain technology is a system that records transactions and information distributed over a network of independent computers. The system is decentralized like the Internet and is immutable, meaning it cannot be changed or hacked.
Essentially, blockchain is a distributed ledger where encrypted blocks record information. A unique code verifies each block and is added together to form a chain. This means if a block is tampered with, it can be identified immediately through a peer-to-peer network.
The benefits of blockchain include:
- Security and privacy
- Cheaper transaction costs
Learn more about blockchain here to gain further insight into the technology.
1. Using Smart Contracts
One of the great features of blockchain is the use of Smart Contracts. Smart Contracts are self-verifying and self-executing contracts between all parties involved. All contract information is encrypted in code stored in a blockchain ledger.
As the system is automated, it runs continuously, and the information cannot be interfered with or altered. All parties are then accountable for the agreements contained in the blockchain.
How will Smart Contracts improve business operations?
Smart Contracts ensure that agreements are settled by all parties. It will ensure your business receives payment and your goods or services reach the client. If a party fails its obligations, the information is tracked and dealt with accordingly. There is no need for officials or lawyers who charge high fees to settle disputes.
2. Improve Supply Chain Management
The backbone of any business is the supply chain. Blockchain technology is a game-changer for supply chain management in both reducing costs and dealing with complexity.
Take something like a laptop: each component comes from different parts of the world, such as computer chips made in Taiwan and lithium batteries from China. Once built the laptops ship to multiple destinations.
How can blockchain improve supply chains?
Keeping track of the whole process and the costs involved are staggering. Blockchain can optimize record keeping by providing access to supplier records, verifying all parties, and updating government agencies.
Verification can all be done effortlessly in one system. Blockchain can eliminate any disputes between parties and combat fraudulent activities and add transparency into supply chains.
3. Cheaper, faster Payments
If there is one sector blockchain disrupts the most, it’s the financial sector. Cryptocurrencies (crypto) such as Bitcoin have created a new form of money. As crypto is decentralized, no bank or government controls any crypto exchange.
Sending and receiving payments with crypto means less or no transaction fees. Verifications are faster through a blockchain network, and all transactions are stored and secured. Keeping track of transactions in a single system will improve accounting and eliminate chargebacks as payments are irreversible.
Millions of people have adopted crypto, and many platforms such as CoinJournal provide news and information about the growing crypto world.
4. No More Middleman
The middleman – the grudge of businesses everywhere. Blockchain technology will take many systems and bypass the need for an intermediary in transactions and verifications.
In a sense, blockchain will replace the middleman as the new form of trust between parties. Instead of a middleman, blockchain relies on mathematical calculations to reduce costs and prove authenticity.
5. Securing Your Data
Global business has become more digitally dependent, and cybercrime is on the rise. Companies need to protect their data and digital assets, and blockchain provides the solution.
Encryption is an intricate part of the blockchain, as each block created in the chain requires access with a key code. Moreover, blockchain reduces the costs of cloud storage with better security as no central authority controls it.
Which industries can gain from blockchain?
Industries that stand to benefit from blockchain include:
- Retail and wholesalers
- Financial systems
- Government agencies
6. Raising Funds
All businesses need capital. Blockchain is a new alternative to obtaining the funds you need to start or grow your business. Instead of going to banks or private equity firms, blockchain technology allows businesses to issue Initial Token Offerings (ITOs).
What are ITOs?
ITOs are issued through exchanges for trading among many users. Investors can purchase tokens that represent a stake in the company, like a stock. Furthermore, tokens act as a way to build trust between the business and investors.
Blockchain technology disrupts outdated systems and revolutionizes how we do business. If you want your business to cut costs and streamline your operations, integrating blockchain can do all this and more. We can look forward to a more secure and efficient system to improve our lives like never before.