The boom of cryptocurrency brought blockchain into the limelight. But the benefits of this emerging technology extend far beyond cryptocurrencies. While many held concerns that it would primarily benefit the dark web and criminal operations, its true potential has evolved in recent years.
What is Blockchain Technology?
Blockchain technology stores transactional records (i.e., the block) of the public in several databases (i.e., the chain) in a network connected through peer-to-peer nodes. Every transaction in this ledger is authorized by the digital signature of the owner, which authenticates the transaction and safeguards it from tampering. That capability can offer benefits to companies in a wide range of industries.
How Will Blockchain Technology Change Business Operations?
Here are five standard business operations that blockchain technology will alter in the near future.
Less Expensive Transactions:
Businesses can use blockchain technology to transmit and receive payments directly. As a result, companies won’t need a third-party payment gateway, which is a common practice today.
Peer-to-peer networks manage payments, which do not require centralized verification. This means that a small business can accept a blockchain settlement platform as payment and pay lower merchant processing fees. As a result, deploying a blockchain system in your business operations can help you save money by lowering transaction costs.
Better Supply Chain Management:
Blockchain has proven to be a game-changer for supply chain management, particularly for manufacturers. Blockchain transactions create a documented history of a product, from its conception through the transfer of items to warehouses.
Businesses also can use blockchain for real-time inventory availability and delivery status reports. By leveraging a distributed ledger for accuracy and rapid database input, blockchain technology eliminates a lot of human error from manual record-keeping and document revisions. This capability is particularly useful when product components must meet regulatory requirements.
Transparency is one of blockchain technology’s biggest advantages. That’s especially important in the perishable goods market, where accurate records must be kept and commodities must be tracked constantly to avoid deterioration.
Walmart was one of the first major retailers to implement blockchain technology in its operations. The company maintains records of where each item comes from, how it is produced and stored, and when it is the optimum time to buy it. Big manufacturers like Unilever and Nestle also have adopted blockchain-based business models.
By decentralizing transactions, blockchain technology can reduce the threat of cyber attacks while also encouraging transparency between parties. File signatures are checked on all nodes across all ledgers in the network to make sure they haven’t changed. Because the data is decentralized, encrypted, and cross-checked by the entire network, it is hard to attack or hack the blockchain.
Every genuine transaction must be confirmed by the network’s numerous nodes. To successfully decrypt the blockchain, hackers would need to compromise the majority of nodes at the same time. This operation would necessitate incredible competence and time, both of which are beyond the reach of today’s cybercriminals.
Improved Quality Control and Auditing:
When building and implementing quality assurance standards, companies need a precise record of transactions. Businesses can spot problems in the manufacturing and distribution process and track them back to their source with unprecedented efficiency thanks to blockchain technology.
The permanent records of blockchain technology also improve the accuracy of financial audits for both internal systems and external partnerships. As a result, accounting teams can automate their day-to-day procedures while still adhering to tight compliance and regulatory requirements.
Blockchain is an emerging technology with many advantages in an increasingly digital world. For more information about how you can use blockchain technology to improve your business operations, contact InApp.