What is Blockchain? How Does It Work in Favor of Business?
Blockchain for business is invaluable for entities that transact with each other. The distributed ledger technology allows participants to access the same information at any time to improve efficiency, build trust, and remove friction. Blockchain also allows businesses to rapidly scale and perform various tasks across industries. Blockchain for small business offer four main benefits:
- Consensus: Shared decentralized ledgers are updated only after the transaction is validated by all involved participants.
- Replication: Once a block (a block of information) is created, it is automatically created across all the ledgers for all participants in that channel. Every involved party in a business can access and share a “trusted reality” of the transactions.
- Immutability: More blocks can be added to the chain but it is impossible to remove a block, so every transaction can be recorded permanently which increases trust among the stakeholders.
- Security: Only trusted and authorized parties are allowed to create blocks and access the information and data stored in them. This makes blockchain technology incredibly secure.
How to Implement Blockchain for Business?
Blockchain has left the crypto market and it has gone mainstream. Industries around the world are using blockchain to transform their business operations. Blockchain provides a sense of trust, reliability, and efficiency that wasn’t possible earlier on. With the use of blockchain, businesses can reinvent the supply chain, food distribution, financial services, government data management, retail services and so much more. The benefits of blockchain in business are seemingly endless, the only limitation is implementation.
Innovative Applications of Blockchain for Businesses
Widespread blockchain use for business will change the way your business runs its day-to-day operations. Here are the most common uses of blockchain technology for business:
1. Smart Contracts
The release of the Ethereum project reinvented the word “smart contract.” The project is “a decentralized platform that runs smart contracts, applications that run exactly as programmed without any possibility of downtime, fraud or third-party interference”.
‘Smart Contracts’ are automated computer programs that can carry out the terms of any contract. What makes it even better is that these contracts will be unbreakable. Top companies like Slock, which is an Ethereum-enabled internet-of-things platform, leverage this application to allow customers to rent bicycles where they can unlock a smart lock after both parties agree to the terms of the contract. This is one of the best uses of blockchain for business.
2. Cloud Storage
Cloud storage is another brilliant application of blockchain for small businesses. One of the most innovative brands in the market named Storj claimed that “Simply using excess hard drive space, users could store the traditional cloud 300 times over.”
The average cost of blockchain regarding cloud storage is more than $20 billion. By integrating blockchain into cloud storage, significantly reduces the cost of storing data for companies and personal users. If that’s not one of the best benefits of blockchain in business then what is?
3. Faster, Cheaper Payments
Blockchain started with Bitcoin, also it shouldn’t come as a surprise that Bitcoin and other cryptocurrencies can be used to initiate faster payments. Making crypto payments on the blockchain is beneficial when you have international or remote workers. Blockchain allows you to pay the salary of your employees in less than an hour without outrageous transaction fees associated with banking systems.
Paying employees by using cryptocurrency may help you save money in numerous ways. Plus, with blockchain, you can keep track of your transactions and payments. This way, you won’t ever overpay on your taxes or underpay. If you’re wondering how to implement blockchain in business, then you should try to move in this direction.
4. Improved Marketing Campaigns
Good marketing is crucial for your business, but the number of businesses that are competing in the space makes it harder for your business to stand out from the crowd. Businesses are usually familiar with using social media, billboards, and other forms of marketing. Blockchain may make your marketing efforts more effective.
Blockchain can be used by marketers to keep track of client information and consumer behavior. Using this data, skilled marketers can build robust marketing campaigns that provide better ROI. Additionally, blockchain allows marketers to verify that the traffic they’re getting is real people.
5. Fraud Mitigation
Banks, financial institutions, and other businesses can use blockchain technology for businesses to identify with whom they are working. Blockchain facilitates reliable ID Management to prevent fraud. If customer information is stored on a blockchain network, it mitigates the risk of identity theft, money laundering, financial fraud, and so on.
Any information placed on the blockchain can’t be changed, it allows people to take control of their data. Once a customer’s identity verification has been completed, other parties can use the data to confirm if they are working with a real person and not an identity thief.
