How to Use Blockchain Technology for Business Improvement
If you’re wondering what blockchain technology for business means, you’ve come to the right place. Read on as we dig deeper into this innovative solution and uncover how it can improve your business.
What is Blockchain Technology and How Does It Work?
Blockchain technology is a public digital ledger that records transactions (block) across several computers (chain) within a network.
Every transaction in the digital ledger requires its owner’s digital signature to authenticate and protect the transaction from tampering.
In simple terms, the ledger is like a Google spreadsheet that keeps actual purchases’ transactional records. While anybody can access the data, no one can change or alter them, keeping the data safe.
Incredible Uses of Blockchain Technology for Business Improvement
Blockchain applications help improve businesses in many incredible ways. Let’s drill down into the uses of blockchain technology for business enhancement in various industries.
Finance
Blockchain benefits the finance sector through distribution and immutability
Since a single entity does not control the ledger, everyone within the network receives the same information. Given that each person has a copy, erasing, altering, or adding transactions that are not verified is nearly impossible.
Let’s take a closer look at how blockchain can be used for financial transactions:
Money transfers
International money transfers are usually laborious, error-prone, and costly. This is where blockchain-powered mobile wallets play a pivotal role.
Blockchain can facilitate international payments since it is based on distributed ledger technology (DLT). With this, blockchain-powered mobile wallets can complete international money transfers electronically.
As a result, consumers can save money since they no longer have to pay onerous transaction fees. Additionally, they can avoid the hassle of standing in line in money transfer facilities, saving them time and effort.
Direct payments
Usually, funds that move through financial institutions like credit card companies and banks come with additional complexities and costly fees. Blockchain technology can help merchants reduce costs and remove insufficient funds.
Blockchain-based transfers streamline the process, allowing merchants to reduce or remove fees. Meantime, blockchain-based payments help merchants understand whether a transaction is good in a matter of seconds or minutes.
Similarly, individuals can benefit from blockchain technology by preventing online scams and saving time and money.
Blockchain-based payments are less costly than banking services, and they’re also reversible and quick. Additionally, they help prevent issues other payment methods experience, such as time-consuming wire transfers, untraceable cash transactions, and forged cheques.
Transaction tracking
Blockchain revolutionizes banking not just through money transfers but transaction tracking as well.
This innovative technology makes it easier to track title ownership since a digital ledger is nearly impossible to change. Ownership transfers and liens can also refer to the ledger for data verification.
Blockchain also enables automation.
For instance, smart contracts can track payments and delivery and address any issues during the process. What’s more, automated systems can work 24/7 and lessen human error.
Fraud prevention
A ledger contains transaction information within each block and a unique hash referring to the previous block. Also, everyone within the network receives transaction copies.
These features make blockchain technology resistant to hackers, distributed denial-of-service attacks, and other fraud types. Without these cyber threats, businesses can reduce unnecessary expenses and avoid unwanted stress.
Cryptocurrency
This innovative technology also enables digital currencies. Blockchain firms are reducing entry barriers and offering seamless exchanges of known cryptocurrencies as an alternative to banking.
Real Estate
Not only did blockchain technology disrupt financial services but the real estate industry as well. Below are six ways blockchain has transformed the real estate landscape.
Online transactions
Real estate technology has been traditionally used to connect buyers and sellers and manage listings. But blockchain has enabled new ways to trade real estate and support transactions more comprehensively
For instance, ATLANT developed a blockchain-powered technology to facilitate rental property and real estate transactions. Sellers can manage assets much like stock sales and transact online by tokenizing real property.
Liquidity
A real estate sale typically takes time to conclude, which is why properties are long considered illiquid assets. With tokens and cryptocurrencies, however, real estate can be traded readily.
In theory, through exchanges, these tokens can be traded for fiat currencies. Sellers can get some property value without having to wait for a buyer who can acquire its entirety.
Eliminate intermediaries
Blockchain may also soon transform transaction roles and participation, particularly of intermediaries, who have long been part of the ecosystem. This includes banks, brokers, and lawyers.
Eventually, new platforms can assume payments, listings, and legal documentation functions. Sellers and buyers can optimize their expenses by saving on intermediary fees and save time from much quicker processes.
Decentralization
All peers on the network can access information kept in the blockchain, promoting transparency and immutability. Since peers can verify the data, buyers and sellers can be more confident in making transactions
Even better, they can reduce fraud attempts. Put simply, a decentralized exchange establishes trust in the system.
Reduce costs
A decentralized network can also help reduce costs related to real estate transactions. Aside from intermediaries’ professional fees, registration fees, inspection costs, and real estate-related taxes can be cut.
Loan fees and inspection costs can also be taken out of the picture. Blockchain-powered platforms can automate these processes and integrate them into the system, resulting in fewer expenses.
Fractional ownership
Blockchain technology also allows fractional ownership, lowering real estate investment barriers. Investments usually require a significant amount of money upfront to buy a property.
But with blockchain, investors can buy and sell token fractions as they see fit using a trading app. Fractional ownership also takes away the hassle from managing the properties, like leasing and maintenance.
Logistics
Blockchain technology also plays a crucial role in logistics, particularly in solving some significant inefficiencies plaguing the industry for years. Let’s take a look at how blockchain is revolutionizing the logistics industry.
Freight tracking
Secure and authenticated data are essential for transport companies to enhance their operations consistently. However, the current EDI and API-reliant systems for recording and providing this data are prone to manipulation and misinterpretation.
Unfortunately, this can have severe consequences for the global supply chain. With blockchain technology, though, these major concerns can be prevented.
Peers within the same network can authenticate the data and protect it from tampering. The enhanced reliability of tracking info can also help ensure on-time delivery, especially of temperature-controlled goods.
Capacity monitoring
When partnered with other innovations, such as the Internet of Things (IoT), blockchain can also be beneficial for capacity monitoring.
The shipping freight cost often depends on the cargo volume. By using IoT sensors in shipping vehicles and trucks, shippers can identify the cost by detecting the amount of used space.
The data, which is transmitted to the blockchain, can then be secured. Having secure and accurate data records is advantageous for shippers, especially that global shipments undergo several checkpoints along the way.
Vehicle performance history
Blockchain can also help large and small companies that want to purchase second-hand delivery vehicles by tracking their performance history.
This technology can store and validate the vehicle’s performance and maintenance data for buyers and sellers.
By keeping records in a secure, immutable ledger, stakeholders can have a more reliable and standardized way of determining factors inherent for purchasing. Both parties can also save on costs since there is no need for an intermediary or middleman.
Carrier onboarding
Blockchain not only helps validate records of second-hand vehicles but new carriers, too. Let’s say a freight broker needs to identify a new carrier to assign a capacity load to.
Blockchain supports the broker by creating a decentralized network that stores carriers’ records across the industry. This way, brokers can decide which carriers they can assign the loads during crunch time, even without onboarding.
Smart contract
Smart Contracts are blockchain-coded, self-executing tasks that are impactful to the freight industry.
When a specific condition is met, smart contracts execute tasks, such as releasing payments. By doing so, they eliminate administrative steps like passing forms for approval, which are fraud and loss-prone, cut costs, and remove possibilities of error.
Retail
The retail industry can also benefit from blockchain technology. Here are some ways blockchain can help the industry address common barriers.
Inventory management
Retail companies need to manage their inventories properly to improve their overall efficiency. These enterprises need to keep track of product expiration dates and other consumer interests.
With blockchain, retailers can manage their inventories more efficiently. By automating product surplus or shortage processes according to consumer demand, blockchain can also help retailers save money.
Crypto payment method
Presently, cryptocurrency markets are thriving, and cryptocurrencies are seen to become the future’s money.
Retail companies can have an advantage by using existing crypto as an official payment method. It can help consumers pay for products transparently using secured digital money.
Customer identity management
Retail companies commonly store client information like bank account or credit card details in a client-server networking model. Unfortunately, this is quite vulnerable to manipulation and can result in dire consequences like privacy breaches and state law violations.
Retailers can use blockchain to secure customer data in immutable storage. Only customers can access their information, preventing third parties from breaching the network and corrupting their info.
Fraud prevention
One of the significant benefits of blockchain in retail is the prevention of counterfeit goods and fraud. The retail industry has suffered significant losses due to fraud, hurting brands immensely.
With blockchain technology, retailers can ensure they’re receiving authentic products by tracking them from the manufacturers. As a result, they can prevent counterfeit items from damaging their reputation.
Cyberattack reduction
Blockchain not only helps tackle fraud and counterfeit goods but also reduces cyber hacks. Security risks continue to threaten the industry, resulting in loss of revenues and damaged reputations if not prevented.
Blockchain provides high-security protocols to counter cyber attacks, which means security breaches are no longer possible. In a nutshell, blockchain can help protect revenues by safeguarding the network from unscrupulous third parties.
Blockchain technology has obvious advantages for businesses across various industries. It makes a reliable option for organizations that want to improve their operations and scale in the new digital economy.
Summing up, startup or not, harnessing the power of blockchain can do wonders for your business. It can help you overcome challenges that have long been plaguing your industry, introduce more features to your market, and lead the competition.
Innovative solutions like blockchain technology help businesses gain a competitive advantage. Visit our website to explore other technology solutions that can help your business scale today.
