Blockchain technologies have the potential to disrupt existing political, legal, and economic models. It regulates things differently in the digital world. Blockchain technology is central to regulation and record-keeping of bitcoin and other digital currencies.
As a distributed and open ledger, blockchain verifies contracts and transactions. It is a common saying in the blockchain world ‘Don’t trust, Verify’. You need not depend on a central authority while executing deals in the blockchain. It will store info in a shared, transparent database which is impossible to temper. Essentially, the use of blockchain technology in businesses is now the ‘new cool’.
Industrialists and business owners are always eager to integrate new technologies. At present, the business world is contemplating the use of blockchain technology for its own benefits. In the subsequent headings, we will discuss how businesses can use blockchain for their own benefit.
The role of Blockchain Technology in Businesses:
Blockchain comprises of blocks of data in connection with each other through chains. The participants on the chain can view previous records and add new information. However, an unauthorized person cannot change the existing record. Data is made secure through cryptography. For further insight into blockchain working, you can read this blog.
Intermediaries play an important role in current business models. For example, you have banks, brokers, and other authorities with vested powers. These institutions ensure transparency by verifying transactions and other money matters as a third-party. Blockchain does away with all of them. It provides automation with the capability of keeping shared data safe and accessible to all stakeholders. The timely provision of data anywhere at any time upgrades the audition and regulation. On top of that, ‘smart’ contracts put certain terms and conditions in place through computer codes. No human authority is required to ensure their compliance. Thus, blockchain technology executes its operation with more efficiency and less labor.
How to Use Blockchain:
The blockchain technology can help businesses in the following five ways:
1. Programmed Contracts:
As mentioned earlier, smart contracts are a bunch of terms and conditions written in a programming language. These are self-executing contracts running on a decentralized ledger. Business owners can use them for establishing deals with partners and clients. A smart contract can prove game-changer for businesses. It saves time and money. There is no downtime on the blockchain. Besides, there is no need for lawyers or middlemen who take big paychecks for work.
A smart contract ensures completion of the deal. It puts binding on clients to pay you once you deliver your side of the work. Additionally, your finished products come back to you if the other party backs off. Thus, businesses can run safely without fear of being betrayed.
2. Innovation in Hiring:
The hiring process is cumbersome for businesses. You are likely to meet a lot of clowns predicting to be someone they are not just for getting the job. Often times, people easily dupe their potential employers with wrong details in the CV. It happens because employing companies neither have the time nor have resources to double-check candidates’ profiles. However, you can do that easily with the help of blockchain technology.
You can verify the authenticity of a person’s academic record, extracurricular activities, and references on spot. Furthermore, hiring can be made instantly without delay. Therefore, the operations of businesses can significantly improve with the incorporation of blockchain.
3. Payments in Crypto:
Bitcoin was the first-ever currency used in blockchain. Now there are many cryptocurrencies part of the immutable blockchain ledger. Businesses can use crypto coins to make cheaper and faster payments. It is especially useful when you have employees or vendors in different parts of the world. Paying through crypto takes only a few minutes. besides the record of all transactions is safe for you to re-evaluate at a later stage.
Many times banks overcharge for transaction fees. Moreover, banks have downtime or holidays, etc. which can make the process linger on for a while. Blockchain, on the other hand, is always available with a low transaction fee and fast track money transfer. Therefore, it will build the morale of your employees as they will get paid for the work without any delay.
4. Relationship Management:
Blockchain helps you in keeping records of digital IDs of employees and customers. You can verify the identity of people and also protect their information. The secure blockchain platform makes data theft nearly impossible. Therefore, the risk of cybercrime is reduced.
This particular aspect of blockchain technology use in businesses creates and manages relationships. People are in control of their personal information. Besides, work relationships smoothly progress with customers as they can view transactions record at any point in time. Business owners can also gauge the behavior of customers and the pattern of business with them. Consequently, loyal customers are easily identified.
5. Amelioration of Marketing:
Marketing is important for businesses to stand out. The use of blockchain technology in businesses can improve the outcomes of your marketing endeavors. For instance, you can collect client information and gauge consumers’ behavior. The marketing team can then run a campaign based on the data. Subsequent alteration in data will result in changes in campaigns.
Blockchain technology keeps track of ROI (Return on Investment). Thus, business owners can spend money with precision. Furthermore, you can also check the type of traffic your campaigns attract. This deters bots from plaguing your results.
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Blockchain technology can help businesses in multiple ways. However, the needs of businesses are different. It is important for business owners to know how they can profit from integrating blockchain. For this matter, they can learn from early adopters.
United Nations’ World Food Programme (WFP) used blockchain for cash transfer in 2017. Syrian refugees in Azraq camp in Jordan received cash in-time through electronic service. The identity of a receiver was verified and the transaction was recorded without the help of any third-party. This is an example of the successful use of blockchain technology for managing funds.
The use of blockchain technology in businesses will go far and beyond. The novelty and complexity of this tech innovation will soon go away. Many entrepreneurs ready for the disruption of the business models through blockchain are waiting in wings. Hence, now it is not a matter of ‘when?’, it is a matter of ‘how?’.