When Bitcoin was launched in 2009, the prospect of digital currency was no longer theoretical and a very real concept. It rapidly gained interest, and businesses started to test how they could make it work for them. Large corporations, governmental bodies, social enterprises and charities began to use it to improve upon their existing processes and expand upon business models. Here we explore how and why businesses can benefit from blockchain, and how to make it part of their overall strategy.
The first thing that you need to remember is that there are so many options in relation to blockchain networks depending on the project that is being worked on with varying levels of sophistication. There are networks with low barriers to entry that could act as a good test case. Check the Kusama price for something that could be a good starting point.
The Trust Factor
Blockchain creates trust between entities if that has not already been established. By this, we mean that people may work with different businesses that they perhaps wouldn’t have done before without the additional security that blockchain offers in terms of transactions and holding data. With the added encryption and automatic paper trail that the blockchain provides every transaction, there is a better foundation for trust between businesses. Additionally, smart contracts will ensure transactions only are processed if an agreed upon act was carried out first. It could be that a business already has an existing relationship with another, but haven’t yet had to facilitate or complete any transactions, which is where the partnership is really put to the test. Blockchain and Bitcoin are widely recognised and trusted which will give you an edge to other competitors who perhaps aren’t using blockchain.
No Security or Privacy Issues
One of the main advantages of Blockchain and a major reason why businesses should explore it, is that it means that there is less to worry about when it comes to security and privacy. The security offered by Blockchain is enhanced, which means you know your transactional data is safe. All transactions are protected by end-to-end encryption which means that there is no risk of fraud or any kind of illegal activity. It is pretty much impossible to hack into.
It Can Cut Organisational Costs
The great thing about Blockchain is that it can cut costs without you even noticing it. It will automatically make the processing of transactions much more efficient, limiting the amount of time you spend on them. There is less manual labour required when it comes to reports, audits and editing of information or data. The streamlining of these processes will save you time, and in fact money. There will be less middle men required in order to function this part of your business.
Everything Is Faster
In the business world, if there is a faster way of doing things, that’s definitely the preferred method. We all want everything done yesterday. Because there aren’t as many 3rd parties, or intermediaries, everything can be completed much quicker than it would if you were using traditional methods. Depending on the specific transaction, it can be handled in less than seconds. This does however depend on the kind of system that is used.
Transactions Can’t Be Changed
Every transaction that is completed over blockchain is completely visible and transparent. Everything is recorded, so you know every detail about what’s occurred. That level of traceability could be huge for your business Once it has been recorded, it means that nothing can then be changed or edited, giving you again some additional security of knowing nobody can tamper with your data. Once you have been using the system for a significant period of time, you will then have a set of auditable records that you can refer to.
You Can Control Your Data
Data is a valuable commodity in the world of business, and most businesses want to retain control of it. By using a blockchain system, this gives you much more control. You, as a company, can choose which pieces of data you’d like to share and with who. It’s all in your hands. You can also limit the amount of time people can have access to the data, should they only require it for a certain period of time.
Can Be Used as Part of Your Innovation Practices
Many businesses have innovation think tanks where they look at how they can solve problem areas within the company or improve processes. It could be simplifying some of the most standard business practices such as verifying information. If you are on a recruitment drive for example with lots of applicants, it could help you identify whether or not any potential candidates are falsifying their information. There are so many processes that blockchain could simplify for you and help you add to your bottom line.
If you are a business wondering if blockchain can help you and improve the way you operate, hopefully you will now have an idea of some of the advantages of it and how it could be used to grow what you already have.
