For many people, blockchain technology might be directly associated with Bitcoin. While cryptocurrency is one of the most widely known uses of blockchain technology, it is not the only purpose that blockchains can serve. Acting as a digital distributed ledger, blockchain technology can meet innumerable demands that businesses in various sectors have.
Starting from the exchange of funds through platforms such as Symbiosis to storing customer data, the unique characteristics of blockchain technology can be applied wisely to many areas of a business, thereby making it more efficient and profitable. With the right strategy, an approach to include blockchain into sectors like healthcare, education, and real estate can bring about drastic changes in the economy itself.
Advantages of blockchain for business
Guarantees security and privacy
Blockchain-enabled systems grant more security to business records than any other technology today. The unalterable format of transactions that are end-to-end encrypted makes unauthorized access or activity impossible and this prevents fraudulent behavior in business.
Also, any information that is entered into this digitized ledger is stored across a chain of devices. This means that hacking into these systems is difficult and even if someone is able to break the defenses, only limited data can be accessed with proper authorization.
Gives way for quick transactions
Conventionally, transactions between businesses involve intermediary entities and loads of paperwork that take up a lot of time. By switching to blockchain technology to carry out transactions, these unwanted hurdles in between are removed and the whole process takes on two or three seconds to reach completion.
In addition, features like smart contracts that took place after Bitcoin Evolution makes sure that all the parties involved keep up with the terms of the contract. Blockchain can also give authorized entities information on their clientele and suppliers in a few seconds.
Described as a process where the value of an asset is converted into a digital token and then stored on blocks, this application of blockchain technology is gaining more attraction these days. Used to sell creative work, especially digital art and music, tokenization of virtual assets can help certain businesses tremendously.
By incorporating blockchain ledgers into the functioning of a business, each time a transaction takes place, a clear record of the same is maintained chronologically. By doing so, there is not only better security, but there is also an audit trail verifying the transaction. It also becomes useful in determining how authentic the assets exchanged are. In cases of dispute over assets, these ledger records can be considered as proof of ownership.
For any successful business relationship, trust is an essential concept. Trust between suppliers and customers, joint venture partners, and shareholders can make or break businesses. With the increased visibility, immutability, traceability, and security granted by blockchain, entities who have no prior contact with each other can engage in business without fear of being exploited or cheated.
Summing It Up
Now that the virtues of blockchain technology are better understood by people, it is only a matter of time before it is seen in action. Many global business enterprises are turning towards blockchain technology to improve their business and depending on the policies regarding blockchain technology in many countries, success rates are varied.