Blockchain technology is rapidly gaining traction, but according to a Global Blockchain Business Council survey reported in Cointelegraph, the majority of senior executives (63%) still don’t know what it is or why it matters. However, few companies are taking notice of the business benefits and embracing blockchain technology for its wide-reaching possibilities. From manufacturing to healthcare to supply chain and beyond, blockchain has much to offer.
But what is blockchain in business?
Blockchain is a type of technology that records transactions to a digital ledger where they cannot be changed or altered. These records or blocks of information are linked using cryptography. The info on a blockchain is easily verifiable and open to the public. Blockchains are also decentralized, so the data is shared with all the computers on the network. A number of applications are built on the blockchain. Blockchain applications provide a wide variety of solutions you need to improve your business.
Blockchain for business is valuable for entities transacting with one another. With distributed ledger technology, permissioned participants can access the same information at the same time to improve efficiency, build trust and remove friction. Blockchain also allows a solution to rapidly size and scale, and many solutions can be adapted to perform multiple tasks across industries.
Luckily, there are several ways you can use blockchain right now to solve your business’s most pressing problems.
1.Operational cost reduction
One of the top benefits of blockchain technology is that it can reduce operational costs. This is because blockchain allows businesses to remove intermediaries or the administrative effort associated with both transaction reconciliation and record-keeping.
2.Use Smart Contracts
A smart contract is a self-executing contract that has the terms of all parties written directly into the code. The code and terms of the contract exist on a decentralized blockchain network. Smart contracts ensure all parties in the agreement do what they are supposed to. These self-automated programs run without downtime and without the interference of external parties.
3.Transparency, authenticity, reliability, and security
Blockchain technology also provides a greater level of transparency, authenticity and reliability. This is because it is encrypted, which makes all transactions more secure and allows for every aspect of the transactions to be tracked and recording.
4.Paying Employees
Since the blockchain has its roots in cryptocurrency, it only makes sense that it could be used as an application to compensate employees. If your company regularly pays wages to international workers, then incorporating Bitcoin into the payroll process could be a major cost saver.
5.Level up your supply chain management
One of the greatest challenges facing manufacturers today is the increasingly complex and opaque global supply chain. A single iPhone has dozens of components manufactured around the world. This makes it very difficult for brands to know exactly where their products originate, opening the door to illegal and unethical practices. It also means that companies have a hard time maintaining a record of products and locating those that get lost along the way. Blockchain is already solving these issues, with companies like Walmart, Nestlé, and Tyson getting on board.
In Conclusion
Blockchain technology offers some obvious and attractive benefits such as increased security, reduced costs, and transparency, but it can be integrated into your business in more ways than you think. As a digital payment method, it’s clearly already found success, but you can use this same technology to securely sign contracts, reduce transaction times, pay employees, and communicate with your supply chain. As the benefits of blockchain technology are further explored and more businesses integrate this tech into their business model, capabilities are sure to increase as blockchain technology develops.
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