Top 5 Benefits of Blockchain Technology for Businesses
The use cases of blockchain technology keep expanding. The world has come a long way from associating blockchain with only keeping track of cryptocurrency transactions. Now more industries are realizing that several of the blockchain’s inherent traits are revolutionary and can positively improve the business operations specific to those industries.
The question is have you explored those qualities and do you understand how they can improve your business? Let’s take a quick look at five benefits that blockchain offers businesses across different industries.
The Benefits of Adopting Blockchain Technology
1. Reliable Security
Several of the blockchain’s capabilities enable it to offer the sort of security that top businesses need to safeguard sensitive data and operate smoothly.
Its decentralized structure ensures that hackers can’t easily gain control of your systems and wreak havoc. This is because unlike with a single server, the blockchain stores information across multiple servers globally, and hackers would need to gain control of more than 51% of those servers to breach your defense.
Going one step further to leverage permissioned blockchains means you can even restrict data access to a select set of users who are issued special certificates. That way, certain details are accessible only on a need-to-know basis.
The blockchain’s record-keeping system is also great at preserving operational integrity. Transaction records are validated and stored based on approvals reached by consensus. And once accepted, data is stored in blocks and encrypted end-to-end, preventing alterations and fraud.
2. Improved Efficiency
One of your top business goals should be delivering value to customers while managing business operations as efficiently as possible. You can make this possible by drawing on the blockchain’s unique characteristics.
For one, using the blockchain simplifies documentation. You can avoid cumbersome paper trails by simply storing transaction details and other data on the blockchain. Consequently, critical data will be accessible anywhere, you can access aggregated transaction details without having to reconcile multiple ledgers.
The blockchain also introduces speed into payment and settlements with its peer-to-peer network. By bypassing traditional financial institutions using the blockchain, you can move money faster and enable your customers to do the same.
3. Reduced Costs
Blockchain technology eliminates several inefficiencies that also translate to more overhead cost for businesses. For instance, it can speed up the processing of transactions by bypassing expensive legacy systems, infrastructure or middlemen that offer similar processing capabilities as the blockchain.
Also, the use of blockchain-powered features like smart contracts can eliminate the need for lawyers and other similar intermediaries, thus removing the cost of employing their services for certain deals.
Moving business funds via the blockchain can also help you avoid banking. Over an extended period, money saved on bank charges can be sizable enough to help build the business.
4. Better Transparency
One of the biggest drivers of business growth is accountability, and the blockchain facilitates this better than traditional systems.
Seeing as the blockchain is a distributed and open ledger, all transactions are recorded accurately and are uniform across all access points. This way, important data is available to critical stakeholders whenever they need it.
Blockchain can also deliver a trustworthy and reliable ledger of transactions which shows the movement of funds for internal company operations and revenue inflow from sales. All transactions are also time- and date-stamped.
5. Instant Traceability
The blockchain ledger offers an audit trail that can be useful in tracking transactions and movement of goods. This can be helpful in identifying loopholes in a supply chain, verifying the authenticity of digital assets and preventing fraud.
In supply chain management for instance, businesses can digitize physical assets and move such digital representations across the blockchain so the assets they represent can be tracked from production to delivery using an immutable record.
Grow Your Business with the Power of Blockchain Technology
Blockchain undoubtedly offers game changing benefits for organizations ranging from financial service providers to non-profits and logistics companies. That said, building on the blockchain is anything but straightforward. The cost of setting up and maintaining this technology can quickly become unsustainable for organizations just starting out, not to mention that going it alone can be time-consuming due to the blockchain’s complexity.
Bitpowr solves all these problems by offering ready-to-deploy blockchain infrastructure for businesses of all sizes and across different industry verticals.
You can tap into our existing API-based infrastructure and integrated blockchains to build, run, and scale your blockchain-based solutions quickly and cost-effectively. Contact sales or send us an email at [email protected] to get started.