The Benefits of Applying Blockchain Technology
When Blockchain first appeared, only cryptocurrency-related businesses and investors had a clear vision of how to implement this cutting-edge technology for their business development. Today, Blockchain has evolved into a versatile solution that helps companies from various industries enhance their customer experiences and improve their working processes.
The decentralized nature of Blockchain ensures its high security and transparency while preserving the confidentiality of Blockchain members. All these allowed the first Blockchain adopters to successfully use this system for cryptocurrency exchange. Later, Blockchain extended its functionality by adding Smart Contracts which simplified its application for various businesses.
Smart Contracts – self-executing contracts in the form of programs stored on a Blockchain. They perform programmed actions once predetermined conditions are met. With Smart Contracts businesses can build chains of actions when one fulfilled action triggers another action and excludes any intermediaries from contract completion, making the process autonomous.Blockchain promotes transparency in businesses/customer interaction, enhances the reliability of financial operations, improves data management making it faster, and much more. Besides bringing positive transformations in customer experience, it also increases companies’ productivity by eliminating repetitive tasks, breaking down organizational silos, and lowering operational costs.
Businesses from various industry domains can find many ways on how to improve their processes with Blockchain. In this article, we’ll have a look at how Blockchain operates and explain how various companies utilize Blockchain for enhancing their business development.
How Blockchain Can Power up Your Business
There are a number of advantages Blockchain offers companies from diverse industry niches. Let’s have a closer look at why many businesses use Blockchain in their digital solutions:
- Improved transparency – any Blockchain participant can track its operations in the system. This enhances accountability of the system and decreases operability silos. That’s why Blockchain is widely implemented in financial and banking, advertising, logistics, stock trading, and other complex systems which require several participants who can track the status of each transaction.
- Enhanced sustainability – in case of any failures or breakdowns Blockchain’s decentralized nature allows quickly restoring all the transaction records as each participant has an updated copy of all the transactions made.
- Increased efficiency – Blockchain Smart Contracts remove any necessity for intermediaries in various operations. For example, in real estate contracts, negotiating parties don’t have to refer to real estate agents to conclude an agreement. Also, digital currency exchange can be done faster in comparison to traditional financial services.
- Improved security – each block in Blockchain records is encrypted and attached to the chain of blocks with a unique number composed from the previous block and the current block numbers. These unique numbers are mathematically computed and approved by a network of users. This way, it’s almost impossible to remove or corrupt any block in Blockchain, making the data in the blocks hard to hack.
- Better traceability – Blockchain participants can track all the transaction records up to the first transaction made. This feature significantly helps companies improve their supply chains. They can precisely track the current location of their goods and their transportation routes. Also, with Blockchain it’s easy to verify the supplied goods and eliminate the forged products from the market.
Does Your App Need Blockchain?
Many companies see substantial potential in embedding Blockchain technology in their applications. It allows them to better protect their data, speed up working processes, and improve their customers’ experiences.
Here are the cases when it’s worth considering Blockchain as a viable solution for your application.
- Keeping a record of all transactions
With Blockchain it’s easy to keep and trace the record of all the activities your business partners and employees perform. You’ll always be updated on the latest transactions and will still be able to track back each assent and activity.
- Faster transaction performance
If your business involves multiple business partners who need to transact with each other, then Blockchain can help to speed up these processes. A decentralized Blockchain system will eliminate the necessity to refer to any head node for transaction approval and verification while ensuring that each transaction is completed in the right way.
- Exclusion of gatekeepers
For some industries having a trusted gatekeeper for performing financial deals or selling products are essential. With Blockchain it’s possible to remove the gatekeeper from the transaction process while preserving the reliability of transaction processes. This allows businesses to reduce their expenses and provide a seamless experience to their customers.
- Automated contracts
With Blockchain, businesses can legislate the fulfillment of agreements on a long-term basis. For this, they use Smart Contracts which include pieces of code that get executed once certain conditions are met. For example, it could be a payment when it’s proved that the task is completed or a deposit upon order placement, and many more cases.
- Adding app security
Blockchain is a technology resistant to hacker attacks as it has no central point attackers could aim for. Moreover, none of the system participants can perform any changes to the Blockchain system on their own. As a result, Blockchain is considered to be one of the most secure technologies for preserving data.
Conclusion on Blockchain
Today, Blockchain is one of the most prominent technologies that helps companies to enhance their inner workflows and provide more efficient customer services. It becomes possible due to the outstanding features the Blockchain possesses which make software applications more transparent, traceable, secure, and stable.
Nevertheless, for effective Blockchain implementation, companies should have a clear vision for what purposes they intend to adopt it. The technology is the most appropriate to use when your company handles complex transactions with several business partners, it’s necessary to protect sensitive data, or you’re required to draw up agreements for a long-term period.