In the past few days, the word Blockchain has been mostly used with cryptocurrencies. So now people consider companies that provide blockchain development services to be cryptocurrency developers. Blockchain on the other hand refers to a constantly expanding networked public database of permanent, unchangeable transactional data. This can help modern businesses in many ways such as increasing financial transparency for the accounts department. It can even help the HR in aumating both centralized and decentralized recruitment. It can help the Business create smarter contracts and it can even help streamline the company’s overall supply chain operations. This blog explains in further detail the benefits blockchain technology can provide to your business.
Higher Level of Transparency and Trustworthiness
Creating a public ledger requires consensus and the creation of a set of predefined rules by all of the members of the network. This means any changes in the blockchain would require another such consensus to go forward. This adds one more layer of transparency to the whole process. Furthermore, as the records would be immutable it would be easier for the customers, business partners, or suppliers to share sensitive data. Integrating external stakeholders such as suppliers in the blockchain would further increase the trust and understanding between your business and the supplier.
Data breaches have become a new nightmare for many business enterprises. Having a digital database always carries a risk of being hacked. This can result in the loss of valuable data or manipulation of it. This is where blockchain comes in. Data stored in the blockchain is very difficult to hack. That is because the technology operates through end-to-end encryption which creates an unchangeable database of transactions. Thus this leaves no room for Fraud or other kinds of Unauthorized activities.
Conventionally servers are used to store data from computer systems. Since the data is stored in one place, it makes it easier to be hacked in one go. On the other hand, the data in a blockchain is spread out over a network consisting of a large number of computers. This makes hacking almost impossible. It can also boost privacy by making the Data anonymous and limiting access to it by requiring permissions.
Improved Efficiency and Greater Cost Reduction
Blockchain technology increases the rate of transaction processing. It minimizes the manual effort needed for tasks like Data collection, editing, reporting, auditing, and storage. Apart from saving costs through efficiency Blockchain also mitigates the use of third-party vendors or middlemen which previously provided the processing power it now provides.
Apart from automating the time taking processes, blockchain also provides the benefit of eradicating any chances of mistakes being made due to human error. Overall Using blockchain can drastically reduce the processing time of transactions. For example, in 2018 Walmart utilized Blockchain to reduce the processing time of its food traceability for mangoes from 7 whole days to 2.2 seconds.
More Control Over the Supply Chain
Blockchain technology allows real-time tracking of a company’s products and services. With this you can track your products in whichever stage of the process they are from Manufacturing to consumer delivery. This would help you better identify room for improvement in the process through better evaluation. In addition, it will provide you with timely information in case of any occurring disruption. For example, UAE’s state-owned oil company ADNOC uses a blockchain program that helps them track the flow of oil from their wells to the end customers.
Moreover, it also adds another security layer to the process by introducing transparency in the process. Since blockchain data cannot be easily manipulated it would help you combat Fraud and counterfeiting of goods.
More Innovation in the Business
Blockchain is still a relatively new technology and Businesses are constantly finding newer ways to use it to help make their operations more efficient. Once you implement blockchain services in one part of the business you would have the opportunity of experimenting with it in other parts of the organization. For example, Google is now enabling consumers to make smart contracts through blockchain. Smart contracts are predefined digital contracts that are automatically fulfilled when agreed-upon conditions are met. Similarly, Blockchain Patientory provides widespread information to doctors and patients without compromising privacy and security.
As such Blockchain can be utilized for newer more exciting purposes. For example, now you can use the blockchain to verify the information provided in a job applicant’s resume. It can also be used for the evaluation of employee work performance where it can help you identify any insubordinate employee. Moreover, it can help you verify consumer identity as well as supplier history and background. This makes room for improvement in every area of the organization.