Blockchain-based technology was thrust into the spotlight in 2008 after the introduction of the Bitcoin white paper by the anonymous Satoshi Nakamoto. Since that time, blockchain has grown increasingly popular among business leaders, enthusiasts, and developers looking towards the future.
The nascent technology provides new ways of organizing commercial activities and mitigating costs related to third parties, transparency, and fortifying trust between the players in an ecosystem.
Though blockchain was an obscure technology just a few years ago, today’s business leaders, CIOs, and IT leaders in many organizations see blockchain as an inevitable priority in their operations. The technology has a number of key-value propositions that can add significant value to organizations, with the global blockchain market predicted to reach $20 billion before the end of 2024.
Here are some of the ways you can leverage blockchain technology to make a significant difference in your business.
Blockchain technology helps streamline business operations by reducing the friction in communication between participants. Businesses can use private enterprise blockchains that are verified, distributed ledgers to ensure the quality of information and transparency from the goods or service provider. In addition, blockchain enables the implementation of self-executing smart contracts that automatically execute if a business agreement is reached and terms met.
Blockchain technology increases the level of trust among participants within a business network.
One of the most significant blockchain benefits is the ability to scale down the cost of an operation. Essentially, blockchain eliminates the need for intermediaries within a business transaction. A Fintech report claimed that blockchain technology could minimize the cost of financial services infrastructure by between $15 billion and $20 billion USD per annum by 2022.
Businesses now have a chance of scaling down physical mediation in aggregating, amending, and sharing data. Regulatory reporting and audit paperwork could become much more straightforward, requiring less physical processing.
The integration of digital payments with blockchain is the most common use case of the distributed ledger. By establishing a shared ledger for payments, like the Bitcoin network, blockchain technology can enable secure, nearly-instant settlements at a lower cost than legacy banks.
Blockchain transactions are especially useful for international payments. Convectional bank transfers are associated with high fees and exchange costs. Cryptocurrencies like Bitcoin are not issued by any particular government and do not require third-party intervention to operate. Blockchain payments can be made from anywhere in the world, at any time of the day.
Additionally, paying employees through blockchain systems can save the cost of operation as well. Having transaction records on the blockchain makes it easy to track your cash flow and payments.
A distributed ledger enables reliable digital identity management. Your workforce and clients have digital identification, which makes it easy to verify their identity. Storing this information on the blockchain guarantees security and minimizes the chances of identity theft, fraud, money laundering activities, and other related cybercrimes.
Because information recorded on the blockchain cannot be altered, people are empowered to control their personal data. Explicit transactions also help in evaluating the progress of business relationships with your customers over time. For example, blockchain records can help you learn your customers’ spending patterns and find out your most loyal clients.
Every successful business venture needs a good marketing campaign. However, the growing number of competitive businesses today means it might be challenging to make your business stand out among customers. In addition to standard marketing methods such as billboards, TV ads, and social media, blockchain marketing can make your marketing campaign even more effective.
Marketers can leverage blockchain to keep track of customer data and spending patterns. By capitalizing on this data, businesses can craft informed marketing campaigns that bring more significant ROI. In addition, blockchain technology can help verify that the traffic generated by your business is from real people as opposed to bots.
Accounting is a crucial area in a business enterprise that can massively benefit from blockchain technology. The transparency offered by distributed ledger technology can massively reduce the time spent by auditors to sample and verify transactions. However, accounting is fraught with challenges ranging from the complex tax code to the absolute need for accuracy and precision.
According to the Society for Human Resource Management, blockchain could improve the hiring process by helping HR professionals quickly validate the credentials provided by job candidates and even existing personnel.
An excellent example of a blockchain application in human resources is Aworker. A multi-chain validated data protocol for the development of applications streamlines the creation and management of applications based on validated data and reputation scores.
The global economy is constantly changing. Businesses that are flexible and take advantage of innovative trends will be able to cut down costs of operation and develop a status in the new digital globe. Blockchain technology, coupled with smart contracts and cryptocurrencies, will make business transactions and government processes secure, quicker, scalable, cheaper, and efficient.
Looking forward, it’s likely that the economy will continue its transition towards decentralization as more participants integrate blockchain. The free flow of information and value has caused unprecedented economic growth, turning attention towards startups for the first time in history.
