Blockchain is about more than just cryptocurrencies. It has a lot to offer the business world in terms of settling global payment disputes or tracking supply chain goods. When blockchain was first introduced, the vast majority of people doubted its utility to create change. Today, global enterprises are using blockchain to streamline particular business processes. Microsoft, PayPal, JPMorgan, Facebook, IBM, and Walmart are all exploring the power of blockchain to optimize their existing business operations. Let’s find out how businesses can benefit from adopting blockchain technologies into their workflows.
What Is Blockchain?
Blockchain is a distributed digital ledger used to store information. Blocks of data are shared among multiple nodes of a computer network. Since it’s a decentralized network, it cannot be managed by just one human. Blockchain has no rival when it comes to data transparency. A blockchain can record and store any information such as transactions, smart contracts, intellectual property, etc.
In the business world, blockchain can be used to track orders, payments, accounts, production, and much more. This cryptographic technology makes it impossible to change even the most minute detail unnoticed. You can see every detail of a transaction from end to end. These blocks form a chain of data that links securely together to prevent any block from being altered or adding a block between any existing blocks.
Blockchain is a promising technology because it can reduce risks, delete frauds from existence, and level up the overall transparency of business processes.
Advantages of Blockchain
Thanks to its decentralized and trustless nature, blockchain has revealed new opportunities that benefit businesses by enhancing security, transparency, and delivering total traceability, thanks to its decentralized and trustless nature. While many know of blockchain as a crypto technology that eliminates intermediaries and total dependence on federal entities, Bitcoin’s most potent business applications have yet to be revealed. Here are the most critical benefits blockchain can provide to your business:
Transactions are processed much faster thanks to there being no need to integrate payment systems, and the need for a mediator is all but eliminated. Blockchain offers an unmatched level of automation and optimization, resulting in more efficient business workflows.
Blockchain really proves its value as there is no centralized authority to govern transparency and trust. It allows for sharing data within a particular ecosystem where no single entity is in charge and can alter information off the radar. Moreover, each transaction is open to viewing. It adds both transparency and accountability.
Enhanced security and privacy
To hack the blockchain, you would need to get access to millions of computers and change every ledger (technically impossible). While using blockchain technology, companies enjoy improved security and privacy. Theoretically, blockchain makes fraudulent transactions nearly impossible.
Transferring funds via blockchain technologies takes up to three minutes, while bank transfers can take a few days. It allows for receiving payments with lightning speed. Moreover, blockchains work 24/7, so people can make transactions anywhere and anytime. They don’t need to wait days for banks to confirm transactions manually.
What Industries Can Benefit From Adopting Blockchain?
Blockchain technology isn’t just for digital-first and online-only businesses. Brick-and-mortars can also benefit by using it to streamline their workflows. Banking and blockchain are only the beginning. Gyms, bakeries, restaurants, and other small businesses can get started implementing blockchain. Though blockchains can be useful in almost any industry, not every company needs one. Here’s a short checklist by CoinBase that can help you find out whether your company needs a blockchain solution or not.
Healthcare institutions lack the ability to share sensitive data across platforms securely. A flawless data collaboration between healthcare providers can result in more accurate diagnoses, cost-effective care, and effective treatments.
With blockchain, hospitals and other medical parties can create a network for sharing sensitive information and valuable insights without compromising security and privacy. This can also benefit the pharmaceutical industry and accelerate clinical trials.
Real estate has a wide range of pain points that blockchain can resolve. These include potential fraud, errors in public records, lack of transparency, large amounts of paperwork, and many more. Blockchain can speed up transactions and digitalize the lion’s share of records. Blockchain-based apps can help with recording, tracking, and transferring land titles, property deeds, etc. Moreover, blockchain can keep track of any changes made and ensure that documents are accurate and up to date.
Logistics and freight transportation
Blockchain can keep track of both digital transactions and physical objects like trucks. But for blockchain to work in the trucking and transportation industry, it should be implemented at every end, including small and middle businesses, shippers, and larger logistics companies. Generally, blockchain can help with transactions, tracking, and fleet management. Coupled with IoT solutions, blockchain can collect accurate data about each step. That’s extremely important for food and pharmaceutical items. The adoption of blockchain in the transportation industry promises to lower shipping costs and eliminate inefficiencies.
Insurance companies operate in a highly competitive environment with corporate and individual customers. They deal with tons of sensitive data and insurance claims on a daily basis. Insurance companies lose more than $40 billion every year due to insurance fraud. Blockchain can help prevent insurance fraud, validate filed claims, and track medical records. Insurance companies can eliminate double transactions for the same claim with blockchain-based solutions. Moreover, blockchain solutions can also drive down the amount of time and money it takes to process these transactions.
Blockchain has yet to reach its full potential in the business world. It is still entering various business domains to deliver unmatched transparency, automation, scalability, and security. At Unicsoft, we know how to leverage the power of blockchain and turn it into tangible benefits for your business.
While applying blockchain as part of an enterprise solution, our goal is to solve your primary paint points. In the tech world, it’s so easy to get confused when deciding on the right solution for your business. Our experts can help you find the optimal balance between technology and business value. Drop us a line to discuss the details of your software project.