Blockchain isn’t a strange concept anymore – as cryptocurrencies have sparked a lot of attention in the past few years, people have become more and more curious about the technology behind it. The blockchain was initially created for Bitcoin, allowing investors to take advantage of btc coin price during bull markets. However, its applications have gone beyond enabling transactions, and nowadays, many businesses find great value in the technology that was called revolutionary. And as cryptocurrencies become widely adopted, it is likely that the blockchain will serve many new purposes in the future.
Why has blockchain gained so much popularity?
If you want to transfer money to someone, you would typically log in to your banking account and send a specific amount. Once the transaction is completed, the bank records the details, and that’s it – the process is done. Although it sounds straightforward, there is an aspect that many people tend to overlook. These transactions can be easily tampered with, which is why blockchain is now perceived as an excellent solution to this problem.
Since record keeping is an essential part of any business, it’s crucial to handle the process effectively. However, this data often passes through a third party, whether a lawyer, a broker, a banker, and so on, which increases business costs and can be time-consuming. Luckily, blockchain helps avoid this cumbersome process and enables quicker transactions, saving money and time equally. The digital ledger provides many advantages, such as high security, decentralization, and automation capability, making it ideal for businesses operating in several industries.
How can blockchain be used in business?
Many companies have already embraced blockchain and reaped excellent business benefits from it. This technology’s applications go beyond the world of finance, as we will see below.
Quality assurance
Blockchain can make a difference in quality assurance, especially in solving different challenges that arise. For example, companies can use the technology to link all the supply chain faucets. Suppose something goes wrong; blockchain can help identify the issue as rapidly as possible.
Let’s say there is a salmonella scare. With blockchain, such a major problem can be spotted in seconds, and all bags from that batch can be immediately removed. It’s an incredibly effective system that helps researchers ensure product quality as well. With blockchain, products can be traced and kept unadulterated, assisting companies to comply with safety and quality standards.
Supply chain management
With the help of blockchain, companies can track goods throughout the entire supply chain process. As soon as the product exits the manufacturing facility, blockchain can track it until it arrives at the warehouse as well as its shipment to the store. For instance, De Beers, which is famous for its finest diamond jewelry, has implemented blockchain by creating a platform that tracks diamonds from their production point to their distribution. The platform can also be used by other diamond mining businesses, enabling retailers and customers to check whether a diamond is authentic.
Leveraging blockchain for the supply chain process provides more visibility to business owners into important processes, aligning the interests of a business with those of suppliers and customers.
Smart contracts
Smart contracts are an innovative feature of the blockchain that enables companies to handle large amounts of transactions, including the ones running across supply chains. They integrate services across different companies while ensuring proprietary information isn’t divulged. Some companies have already discovered the benefits of implementing smart contracts, such as the Credit Agricole banking group and SEB, which have partnered to launch a blockchain platform that enables users to raise and manage capital.
The platform is innovative because it helps build a transparent financial environment where transactions can be processed quickly, and automatic transactions can be initiated based on specific conditions via the use of smart contracts.
Voting
Just like currency, you can move votes along the digital ledger securely and accurately. Blockchain represents an excellent solution that enables consensus-building in communities and could play a massive role in altering modern notions related to democracy. At the same time, the technology can also boost the validity of election results.
Voting is an appealing prospect for blockchain, and that’s because elections require transparency and immutability to be successful. Blockchain gives assurance that votes are accurate, as the records within it can’t be tampered with.
Audits
Blockchain provides a permanent record of transactions, creating a paper trail that can be used for business audits, both on a governmental and internal level. This paper trail is not only easy to follow, but it also ensures accuracy, helping solve the issue of retrieving records from multiple disparate sources.
The audit history grows based on how much you store in the digital ledger. By using this technology, audit companies can enhance their processes in several ways:
- They can save time and improve the efficiency of the process;
- They can focus on testing the controls instead of testing the transactions;
- They can create an ongoing audit process;
- They can build new advisory services;
- They can develop a more strategic audit role.
Where is blockchain headed in the future?
Given how blockchain is now disrupting the traditional transaction system, one can’t help but wonder when there will finally be mass adoption of the technology. According to experts, it will indeed be inevitable for businesses to increasingly embrace blockchain – however, that will likely take some time. Some companies operating in major industries have already integrated blockchain into their daily operations. For instance, Sentient Equity Partners, an organization specializing in global resources, leverages blockchain to prove its compliance with ESG standards. It has also developed a blockchain platform that enables companies to check whether they prioritize corporate social responsibility.
As highlighted by this blog, implementing blockchain in business can create new opportunities for security, transparency and efficiency. Businesses can capitalize on the technology’s potential by recognizing pain points within their current processes that blockchain can solve. After identifying the problems, companies can further collaborate with experts who know the ins and outs of technology or with development teams to find meaningful solutions.
