Blockchain technology is revolutionary and its ubiquitous application across industries is mind-blowing. While it seems too early to categorize it as the ‘alpha’ solution to many existing industrial security and trust challenges, it’s great to know that blockchain technology is surely growing and its application is entering the realm of both small and big businesses globally.
In 2010, Satoshi released a white paper on the detailed analysis of blockchain technology that described it as a decentralized ledger capable of verifying and recording volume of digital transactions. Then, much focus was on the basis of cryptocurrencies such as Bitcoin. But as the years went by, enthusiasts and researchers discovered that this technology had many awesome features that could be applicable across many other industries.
Meanwhile, according to CB Insights’ Market Sizing Tool, it was reported that the annual spending on blockchain solutions will reach nearly $16 billion by 2023. And since blockchain operates via a decentralized platform that requires no central supervision, its use cases for businesses both small and juggernauts are practically endless.
Why are industries focusing on blockchain technology?
In this age, it’s crystal clear that the rate of competition among businesses today is extremely high. And to gain a competitive edge over others in the market, your business tactics have to flow with the current trends that appeal to your consumers. Interestingly, blockchain happens to be one of the trends offering amazing solutions to help businesses — finance, gaming, ecommerce, etc to grow better.
Here are some inherent features of blockchain that can help businesses to grow better.
1: It’s a decentralized technology.
2: Transparency is assured on the blockchain.
3: It facilitates peer-to-peer interaction.
4: Data security is top-notch.
5: It’s also traceable and immutable.
Areas of business operations where this technology is found useful:
Beyond every doubt, blockchain has proven to be the key driver of change and the bedrock for new development. In fact, here are areas of business operations where it can be found very useful:
#1 The supply chain section:
Irrespective of the size of your business — whether big or small, it’s very pertinent that your company has a flawless and efficient supply chain. While data-driven supply chain management (SCM) provides steady visibility for monitoring every vital information about the company goods and services from obtainment to production and delivering to end consumers, human error and trust are still affecting this particular section.
However, with the integration of blockchain technology, the entire operation becomes simplified. Aside from eliminating unnecessary regulators, it offers a transparent platform where every data exchange — from the point of procurement to manufacturing and delivering, is time-stamped and stored in sequence in the decentralized ledger. Hence making it seamless for ‘certain members’ of the company to track the information.
#2 Record management and security section:
Do you know that businesses that ensure that their customers’ personal information are well secured tend to grow better? Yes, they do.
Long before now, many customers are scared of having their details (especially personal information) on digital platforms because of cyber hacks. But this technology helps in solving this. Customers no longer have to worry about losing their details or it being tampered — because blockchain offers top-notch security towards all ends. Hackers cannot enter the system or change any data added as a block to the ledger. Meanwhile, if there are any changes in the block, it will affect other blocks as well — because they are associated with each other. Thus, it’s a tedious task for any hacker to change so many blocks at a go.
#3 Smart Contract Section:
Since human beings do business with each other, it’s natural for them to have a contract binding them. Typically, a contract is a binding agreement between two parties or businesses — either big or small-sized.
But today many businesses face serious challenges because their contract with other parties is either breached or delayed even though they’re bound under law enforcement. Thanks to the backbone of modern businesses — Smart Contract.
Smart Contracts are pre-programmed contracts that are governed by agreed explicit terms and conditions between both parties. They’re self-executing — the code and terms of the Contracts exist on the Blockchain network. So once the set agreement is reached by both parties (that is reaching the ends of the deals) it automatically activates itself without delay. In fact, it’s the best tool to use as a business owner when you’re scared of doing business with parties you don’t trust.
#4 Know your Customers Section
For as long as the information on the Blockchain cannot be altered, blockchain is the right tech that can help you know your customers better. In other words, it facilitates “reliable identity management.”
And since both customers and employees have their digital identification means (IDs), their information can be stored on a blockchain network. Well, this process reduces the risk of identity theft, money laundering etc. And yes, since the information on the blockchain can’t be changed, customers can take control of their personal data. In fact, this technology creates room for clear transactional records that strengthen your bonds by revealing how your relationship has progressed over time.
#5 Recruitment section
It’s no news that businesses could lose several thousand or even millions because of their unrefined hiring process. As a matter of fact, some small businesses meet dead ends because their employees aren’t equipped with the crucial technical know-how. According to research by Harvard Business Review, 80% of employee turnover is due to bad hiring decisions.
The cost of a bad hire is huge and that’s why it’s very crucial to choose the right employee to work with. While most of these hiring systems can’t easily decipher if an employee is lying about their curriculum vitae (CV ) or not, hiring qualified people becomes challenging.
The truth is that the internet is flooded with so many people claiming what they’re not. They tweak their CVs to look extremely impressive to their potential employers.
However, with the integration of blockchain technology, employers can easily have access to verifiable records of a potential employee on hand. Every detail about the potential employees — from academic records, past employment records, extracurricular activities and references are stored on the digital ledger. With this, it becomes seamless for them to confirm the authenticity of the potential candidate. Additionally, the stored details of the potential employees on a decentralized ledger make it easier for employers to hire the right people that can improve their businesses.
#6 Marketing Section
Competition, they say, brings innovation. But the number of businesses competing for attention today is overwhelming. That’s why you need to up your game when it comes to marketing your business with innovative ideas.
By integrating the blockchain network into your marketing activities, it addresses your customers’ basic needs which are transparency and data protection. More so, with this technology, business owners can track their customers’ behavior towards their products and services. As a matter of fact, smart marketers can leverage these results (data) obtained from these observations to craft a solid marketing campaign that can bring about great sales.
Additionally, blockchain can assist you in verifying if your business is attracting real people or bots — these results will help you to know how you can rationalize your marketing budget.
Blockchain technology is gradually taking over the entire industry. And it has proven to be an option for almost every traditional business. Why not stay ahead by trying it out?