There’s a large section of people who relate the term blockchain to cryptocurrency, particularly bitcoin. But blockchain is neither bitcoin nor a type of cryptocurrency. It’s the underlying technology used in creating them. And that is not only its only use, it is a technology with the potential to revolutionize how people do business.
So far, blockchain has use cases in almost all sectors including health, supply chain and logistics, gaming, transport, oil and gas, real estate, and insurance. However, to find the most suitable blockchain solution for your business, reach out to experienced technology providers who specialize in blockchain consulting services. Such specialists will assist you with solution implementation and provide detailed recommendations.
Reasons to consider blockchain for business
The type of blockchain used in the business is private. Unlike public blockchains that are visible to anyone, private blockchains are closed up to people within a group or organization. Here are some of the reasons blockchain is good for building business applications:
-
Decentralization
-
Transaction speed
-
Security
-
Trust
-
Immutability
-
Transparency
You can use blockchain to improve your business workflow and process many areas as discussed below.
Payment processing
Blockchain enables faster payment processing verified over a Peer-to-Peer (2P2) network through cryptocurrencies. One of the biggest advantages of using blockchain payment is cross-border payments. This is especially helpful for businesses doing global business or with employees scattered across the globe as this system isn’t restricted to the rules of a certain government or the working hours of a financial institution.
Payments are carried out in real-time, breaking the barriers of traditional payment and payment processing. While businesses using traditional methods are restricted by time zones, government regulations on international money transfers, and institutional-level restrictions, blockchain processing is not.
Besides, even local suppliers and vendors have started adapting cryptocurrencies as a viable currency and method of payment. And while the cryptocurrency market is quite volatile, businesses are still willing to accept payments in digital currency.
Document sharing and security
Document management is one of the critical functions of a business but also one with many vulnerabilities and challenges. Besides, document fraud is among the most common types of forgery and cheating. Document security is also a huge factor every time you store or share information. The blockchain ledger is transparent yet secure with lower chances of hacking and document interference.
For instance, you can use blockchain to store client information safely without the fear that someone might manipulate it or access it without your knowledge. The healthcare industry can also use the technology to transfer patient records securely and privately across a blockchain network only visible to the intended recipient.
Also, because the transactions are recorded in real-time and are immutable, blockchain can eliminate trust issues on the integrity of a record. It also simplifies the process by eliminating unnecessary steps experienced in traditional document management
Supply chain and logistics management
One of the most complex and challenging areas of business is logistics and supply chain management. The processes can consume considerable business time and resources, especially when poorly optimized. Coordination is also a huge matter, particularly in large businesses with offices and stops in different stateliness or regions.
Using blockchain solutions for supply chain management can solve many issues such as lack of transparency, counterfeiting, fraud, and payment processing inefficiencies. You can use blockchain to trace your products’ movement from the source to the customer. The use of smart contracts in the supply chain also ensures that no goods are lost fraudulently as order fulfilments are conditional, self-fulfilling, and can only compete when all parties meet their ends of the deal.
Identity management and authentication
Digital identities are becoming increasingly important. People rely more on services that require identification every day. However, traditional methods of identification have been inadequate in terms of security, privacy, and convenience. Blockchain technology can address these issues by providing a decentralized and tamper-proof platform for managing digital identities.
With blockchain, individuals can have control over their own identity data and can grant access to third parties in a secure and transparent manner. This can eliminate the need for multiple IDs needed to access different services and streamline the authentication process. For example, a student who is also employed will not need two identification documents to access the different institutions. One digital ID can work across the board.
Additionally, blockchain can provide a high level of security for digital identities, as any attempts to modify or tamper with the data will be immediately detected and rejected by the network. By providing a secure and decentralized platform, blockchain can improve the convenience, privacy, and security of these identities, while also reducing the administrative burden for businesses and organizations.
As blockchain adoption continues to grow, you can expect to see significant advancements in the management of digital identities, leading to a more seamless and secure application and use.
Building decentralized applications
Decentralized apps can provide a higher level of security for both users and businesses. Since the blockchain is a decentralized and tamper-proof network, it’s much more difficult for hackers to exploit vulnerabilities in the app and steal user data. This can help businesses build trust with their customers and reduce the risk of costly data breaches.
Besides, the use of blockchain technology in decentralized apps can also enable new business models, such as the use of cryptocurrencies or tokens as a means of payment or reward within the app. This can provide new revenue streams for businesses and enable more innovative approaches to commerce.
Overall, the use of blockchain technology in decentralized apps presents an exciting opportunity for businesses to provide more secure, private, and innovative digital experiences for their customers. By leveraging the power of the blockchain, businesses can reduce the need for reliance on central control for their apps, while increasing app security and privacy.
Conclusion
Experts are still exploring the upsides and downsides of blockchain technology as a business tool. But forward-thinking enterprises are already utilizing it to monitor their supply chains, exchange data, facilitate transactions, and build apps. As the adoption of technology expands, it is likely that you will encounter it in some form, influencing how you do business.
