Blockchain technology has become popular due to its successful adoption in the Fintech industry. Due to this, everyone in the business world today is already starting to talk about Blockchain technology and how innovative it is. Plus, it can be so impactful towards their business.
It is known that blockchain provides a way for us to make simpler and effective online anonymous transactions without any hassle. In every way, Blockchain is the technology of the future.
Experts predict blockchain technology will be implemented for various industries and expect that the future of blockchain is to revolutionize traditional business processes. Hence, let’s see what are the practical ways to imply blockchain in your business.
1. Level up supply chain management.
One of the challenges facing manufacturers today is to manage their complex and non-transparent supply chain system. This makes it very difficult for a business to identify exactly the process of their products being invented which opens 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.
It was good news that blockchain is essentially a decentralized digital ledger. It can be used for tracking, agreements, and secure payment. Blockchain can work to eliminate supply chain disputes because every supplier and producer can view the chain of ownership on the exact same ledger. The technology was solving the supply chain issues for companies like Walmart, Nestlé, and Tyson.
2. Improved Record Keeping/Sharing
Blockchain can help you to keep detailed records of all your business transactions and makes them easy to find. By using blockchain you can also make use of smart contracts. These are preset instructions that can help you perform transactions and monitor databases without the need for third party interference. Currently many businesses are considering making use of Ethereum Blockchain as this is the most developed and efficient form of Blockchain online. Ethereum can manage your database effortlessly and efficiently.
For security, it will share records securely. In order to avoid the records from being vulnerable to theft, blockchain eliminates the risk by creating secure “blocks” of data that can only be accessed or changed with a key code.This gives you the ability to share the information with the providers that was only chosen by you.
3. Smart Contracts
Smart Contracts are self-executing computer programs that can carry out the terms of any contract to be created. These are fully automated; specific agreed terms and conditions between buyers and sellers are implemented on the blockchain codes on the system. When those state conditions are met, the services are given, products provided or payments are made. This allows two or more parties to enter into a binding agreement without lawyer involvement needed.
All agreements and conditions are fully traceable and completely accountable. Should any changes to the contract be required or desired, these can only be made with the consent of all parties. Everything is documented chronologically and is time-stamped, and once information is recorded, it cannot be retrospectively altered or deleted. Blockchain makes the contract process infinitely less complex, faster and cheaper too – helping to streamline your business operations. Businesses that use ‘smart contracts’ are able to bypass regulations and reduce the costs for a subset of the most common financial transactions.
4. More transparent and faster payments.
All transactions are transparent on blockchain due to the virtual ledger and all parties will have shared access to the same records with no camouflage of data. There is no longer any need to separately generate the documents and records (such as invoices and billing statements). Payments can be made almost instantly with no paperwork delays. All parties can refer to the virtual ledger to check on any transaction details.
The technology is borderless, hence payments can be made across countries just as quickly. Not only is it faster, but it will save your money too. Using blockchain means transactions go directly from buyer to seller (and vice versa), so you don’t need to go through any middleman/ financial institution. The numerous fees such as origination fees, transfer fees, receiving fees (if your business is international, banks will usually take a percentage on foreign exchange fees) that you currently have to pay will be cut out when you use blockchain.
We can see that day by day blockchain continues to prove itself as a top tier technology, with new upgrades and innovations coming out daily. Any industry that values accountability and keeping records will definitely make use of Blockchain. Businesses that often struggle with fraud such as the finance sector, government, or even voting polls will need blockchain to ensure that their business is full with transparency and accuracy.