The world we live in is an ever-evolving beast, going through constant rebirths at every possible juncture. No one wants to come in last. We live in a digital age where everything is done at the snap of a finger. Instant.Now the latest and perhaps most important “snap of a finger” technology that has been birthed in a while is the Blockchain.
What is the Blockchain?
Blockchain in its most basic form is a public ledger showing the workings and detailing of all Bitcoin deals that have been done. It is an e-ledger book that is open to all and sundry i.e. parties can view and check on their transactions at any point in time they so wish.
Now that this technology is a reality, let us take a look at ways in which it could revolutionize the way business is transacted the world over.
How Blockchain is changing the way we do business
1. Competitive advantage
With the occasion of many business outfits in a similar line of business, business owners are constantly seeking ways by which they can break to the fore of competition and hold sway there. This is possible with the adaptation and implementation of Blockchain technology in a business. This assertion is based on the premise that people are likely to gravitate towards people and/ or places they and their belongings will feel safe. The very fact that Blockchain technology allows companies to carry-out their duties efficiently, fast and in a compliant and transparent manner would confer this sense of safety on clients and potential clients alike.
2. Creation of smart contracts
Contracts that have been created to the effect that no human is needed for its’ enforcement and realization are called smart contracts. These could be needed on personalized bases and/or also between companies. With smart contracts, all parties are bound by the terms and conditions that obtain therein before financial and/or other business transactions can be made a reality. These could otherwise be called ‘unbreakable contracts’ as they uphold and enforce regulatory compliance.
3. Cryptographic Signatures
Dealings can now be completed with cryptographic signatures. Such dealings include sending and receiving of payments among other business transactions.
4. Easier international transfers
as cryptocurrencies that rely on Blockchain technology for their running are one and the same all over the world with the same value, the process of conducting international transfers can now be made easier and faster with a lot less lag period.
5. Efficient good tracking
in the occasion of businesses that involve shipping of goods or movement of same from one value chain to the other, these goods can be effectively tracked by their producers, owners or any other interested party. This tracking is made possible by the recording of every transaction made across the Blockchain network, effectively backed by the fact that all goods’ unique digital signatures are track-able.
6. Elimination of Third-Parties
The introduction of blockchain removes and makes redundant the need for third parties in business dealings because of its transparency and mode of payment. It also makes it more convenient as there is no nosy overlook or selfish interests of a third party. Plus, it removes the concept of third-party fees!
7. Enhanced Accountability
As the whole Blockchain network is not hack-able and transactions once made are irreversibly stored in the system, in years to come if anyone ever has to revisit, defend or present the details of a transaction, he is able to do this better and in a more effective and accountable manner.
8. Enhanced Security
one of the biggest fears of every business owner is fraudulent activities which occur in the form of unauthorized transfer of money from corporate accounts to personal ones. With Blockchain however, this fear can be dispelled. This assertion is based on the premise that every bit of data on the Blockchain network has its own digital signature which cannot be altered, removed or replaced. With this reality, business owners can proceed with their business dealings with the knowledge that no shady deal is going on underway.
9. More Effective Financial Transactions
Blockchain will bring to the fore a much welcomed, easy mode of payment for transactions between both parties regardless of their location or even time zone. Since it has also cut out the unwanted appendage that is third parties, business can be transacted at a faster and more secure rate.
10. Overall Cost Reduction
In the occasion that middlemen have been done away with, foreign exchange rates are no applicable and the volume of necessary paperwork is considerably lessened, what finally obtains is cost reduction for such a business that engages Blockchain technology in its’ operations. At the end of a financial year, it will be realised that such a business outfit will more than break even.
11. Personalized Transactions
the fact that Blockchain technology allows personalized peer-to-peer transactions to occur means that business transactions like a house or car sales can now be done in a smart and digitized way directly from seller to buyer. These transactions are done more effectively without the ability of any of the involved partied to flout any of the binding terms and conditions.
12. Protection of Intellectual Property
Intellectual theft is a very real thing. It is as real as physical theft in the world we live in today. This theft the makes it seem like the safest place for your ideas is in your subconscious. Well, not anymore. The Blockchain technology gives each individual a unique identification such that intellectual ideas cannot be used or utilised without the prior knowledge of the owner.
13. Quality Assurance
As Blockchain technology allows one to monitor the transfer and/or movement of goods across a value chain, it will be observed that the incorporation of this into a business will really help it in its pursuit of attaining optimum quality for products through the different stages of production and also from the manufacturing plant to the point of the final consumer. This is particular handy as in the case of outbreak or compliance issues, rather than all produced lots to be withdrawn from the market or condemned to waste, only those that have been recognised as problematic can be successfully withdrawn and have the necessary corrective measures taken on.
14. Reduction in cases of counterfeiting
The fact that Blockchain technology allows for each bit of data to have a unique digital signature means that businesses that incorporate this technology need not fear counterfeiting as their products and even raw materials’ authenticity can be easily verified using these unique signatures. Overall, there are reduced instances of counterfeit and enhanced authenticity.
15. Reduction in the volume of paperwork
A popular trend in many business outfits is the movement of documents from person to person. Such papers could be to the end of approving a transaction, acknowledging a receipt or maybe even showcasing the details of a product. Such movement is also characteristic of a delay in processes, a waste of manpower, and a waste of working time and could even lead to unwanted bottleneck procedures. Blockchain comes to the rescue here as it cuts out the need for incessant printing and signing thereby restricting paper work to the barest minimum, improving efficiency and productivity and helping to cut down on valuable time lost which could be reinvested into the business to boost output and invariably income too.
16. Safety from Foreign Exchange instabilities
As it is not news that very frequently, the rate of exchange of currencies world over change either due to economic gloom or doom in specific countries or the international market as a whole. Blockchain offers an advantage here in that as transactions will be done using cryptocurrencies, then one need not bother about foreign exchange as cryptocurrencies are immune from such fluctuations. Rather, they have one and the same value world over.
17. Secured data-sharing infrastructure
For companies whose operations could improve when there is a peer-to-peer transfer of data, the application of Blockchain technology in their outfit will help them. Such an outfit could be a medical practice that could thrive more when doctors can securely send patients’ test result, vital readings and other necessary details to them thereby providing patients with personalized health care.
The blockchain is an open ledger that is extremely difficult to manipulate or mismanage. All parties involved in a business transaction can check to see the workings and data of any deal at any time regardless of where they are in the world. So, the issue of dishonesty and back-alley business tricks becomes a distant memory.
The blockchain is a technology that is long overdue. With its numerous advantages and ever-glowing reviews, it suffices to state that Blockchain is the future of businesses. It was innovated for the cryptocurrency industry where it has played a huge role as it is pivotal to the tremendous growth of that industry. It has its place in every sector of business the world over, the question now is, have you incorporated Blockchain in your business?