Top 10 benefits of blockchain technology for business
Blockchain technology has unmatched potential which can be unleashed to bring novel and innovative ideas for businesses to streamline their existing operations to the next level. The innate qualities of decentralization, trustworthiness, and censor-free have paved the way for the development of the third generation of the internet. Besides, those blockchain experts have helped transform several businesses, particularly finance, but here we will talk about how the adoption of blockchain technology can benefit businesses.
10 ways how businesses can benefit from blockchain technology
Creating trust between different entities is one of the main qualities of blockchain, which has been successfully demonstrated since its inception. Different parties earlier needed the involvement of an arbitrator to engage in transactions that required sharing of sensitive data. But with the arrival of blockchain, such a need is not felt, as blockchain enables trust between parties who don’t know each other.
Decentralization is the main theme of blockchain since there is no centralized authority in the blockchain’s mechanism overlooking transactions. Sharing of data within an ecosystem is possible due to blockchain, as here there is no single entity is in exclusive charge but every participant is a stakeholder. Imagine a supply chain consisting of producers, manufacturers, suppliers, and retailers, each can request fetch information from other participants yet no one is in the charge of facilitating information sharing and the ecosystem is immune to a single-point failure.
Enhanced security and privacy
Another prime benefit of blockchain is that it offers enhanced security and privacy, as blockchain offers end-to-end encryption so that any attempt of malice is nipped in its bud. In case there has been any eventuality where a participating node gets infected, then there are data distributed across the nodes or a network of computers, which makes any sort of hacking virtually impossible. Blockchain offers the features like anonymizing data and data access is permitted on a limited basis to others.
Adopting blockchain technology can lead enterprises to reduce their costs and save money by increasing their efficiency in transaction processing. The daily tasks like collecting data, editing them for reporting and auditing can be automated, so that works like settlement of claims or payments happen directly without the involvement of any middlemen.
Improving speed and efficiency
Blockchain technology can improve speed and efficiency by automating repetitive mundane tasks. Blockchain can complete a transaction in less than a few seconds which earlier used to take minutes due to human involvement along with some human errors.
All transactions over the blockchain are timestamped, which makes all transactions over the blockchain immutable or we can say they can’t be altered. Once a transaction was done over blockchain, it gets stored in blocks that are distributed across the network and can be recalled at any point in time. Businesses can employ blockchain for traceability and auditing, which earlier used to be done on paper and is prone to errors or can be corrupted.
The features like immutability, and security of blockchain ultimately lead to traceability, which can be helpful to businesses involved in retail, and logistics to revamp the supply chain. The retail giant Walmart has already looked over to blockchain technology to effectively manage its inventory and respond to issues regarding its merchandise. Blockchain helps in effectively tracking the movement of goods at every step to confirm their authenticity and root out cases of any counterfeit products in the supply chain.
Tokenization is the process where the value of an asset, which can be either physical or digital can be converted into a token with the help of blockchain technology. Tokenization has many uses while conducting smooth business transactions, particularly in the fields of NFT, digital art and other virtual assets.
Blockchain can bring innovative practices to solve long pending issues faced in various enterprises like verifying crucial information provided by applicants. Banks and financial institutions can verify the information furnished by the mortgagor or borrower through blockchain. Various corporate companies can utilize blockchain-enabled mechanisms which will be connected with universities to verify the resumes of candidates, thus freeing up the hiring managers.
Blockchain can help businesses in automating some of their work through smart contracts, as it will not only free up precious manpower but even lead to a reduction in errors due to manual work. Smart contracts are sorts of codes that self-execute, when certain mentioned parameters are met between two parties, and these codes, are securely stored over the immutable blockchain network.
Smart contracts eliminate the need for any third-party arbitrator for settlements like in the insurance sector, thus saving precious time, effort, and fee charges.
Blockchain is not a technology that is bound to remain for a short span of time since it offers a plethora of advantages to businesses. A senior blockchain developer at Rejolut says that blockchain is adopted by a number of enterprises due to its versatility, as it can very well collab with other emerging technologies like AI, ML, and IoT to bring out the best potential of several technologies together. Blockchain technology is not only going to stay over the horizon but continuously grow like ascending sun and will certainly be a game-changer for businesses.