If you are in the business world, then the term ‘Blockchain’ would not be a new one! Blockchain is undoubtedly one of the hottest new technologies to hit the business world, and companies are racing to learn more about it and how they can apply it to their business. According to statistics, the global blockchain market is anticipated to be worth $20 billion by the end of 2024. What’s driving this exponential growth? A number of factors are contributing, such as- The need to simplify business processes to keep pace with the speed of business, transparency, traceability, and reduced costs.
Well, Blockchain may have gained huge momentum in the marketplace, but people are still not aware of the terminology. They see blockchain as a synonym for bitcoin and often use the terms. However, there is no excuse for losing out on the immense business opportunities that the technology can offer you. Today, in this article you will understand different ways blockchain can make a huge difference in your business processes.
Top Industries Leveraging Blockchain Technology
Within just the last few years, industries from insurance to finance, manufacturing to local government, and everything in between has found ways to utilize the power behind blockchain! Have a look-
Considering this wide spreading of Blockchain, most of the organizations have embraced this new technology in their business. Also, the business and IT services will mark 70% of all the blockchain spending in the future, as per the research.
So, let us discuss what blockchain is and the assorted benefits of using this technology in businesses.
How is Blockchain used in business?
As the name implies, the blockchain is a series of linked data blocks. Nothing can be erased from the ledger or audit track, but more data can be added in the form of new blocks. A unique code makes it possible to differentiate one block from every other block on the chain. Blockchain is important because it is a foundational technology that has the potential to be used in an almost infinite number of ways. Some of them are-
Operational cost reduction
One of the prime benefits of blockchain technology is that it can reduce operational costs. This is because blockchain allows businesses to remove intermediator or the administrative effort associated with both transaction balancing and record-keeping.
Easy of Payments
The collaboration of blockchain and digital payments is also one of the obvious applications of decentralized blockchain networks. By removing the involvement of third parties and associated documents like billing statements and invoices, blockchain has also eased the cash flow in the startups and establishments.
Supply Chain Management
Another great benefit of blockchain for businesses is that it makes supply chain management simpler. It offers a cost-effective method of tracing goods without the guesswork and inefficiencies. This, as a result, making it possible for companies to combat counterfeiting, delay in product delivery as well as security.
When discussing the importance of blockchain for business, technology also adds the benefit of transparency into the business processes. Blockchain is immutable in nature which means the content stored in the system cannot be added, altered, or removed anonymously. This improves accountability and trust between the business partners; making it possible for one to monitor everything in real-time.
Smart contracts are also one of the outstanding ways of considering blockchain for business communication transformation. Being a self-automated contract, Smart contracts are programmed such that the actions are taken on their own when the associated terms of the agreement are fulfilled or not. This not solely reduces the need for intermediaries but also makes the transactions cost-effective, time-efficient, and trustable.
Security is a key requirement for every business. The technology comes with the power of decentralization and transparency which encourages users on the network to store and verify some or all of the information stored in the network. Also, the blockchain network comes with higher complexity and security considerations which lower down the risk of cyber attacks Above all, Blockchain is also emerging as the perfect answer to the fight against Coronavirus by offering real-time tracking information, data immutability, and transparency across distributed decentralized ledgers.
Blockchain technology is undoubtedly here to stay and will change the face of business. With the above-mentioned points, you can not overlook the fact that blockchain has so much potential for the business. Companies are observing these business benefits and embracing blockchain technology for its wide-reaching possibilities.