Leveraging advanced technology is a necessary move for modern businesses wishing to remain competitive — no matter what industry they're in. For example, staying on the cutting edge of technology can help companies boost productivity and efficiency without taking workplace risks or spending a lot of resources.
One of the most promising technologies of the moment is blockchain.
Although it is a relatively new invention, blockchain is already gaining traction for its ability to provide concrete advantages to companies in various niches. To help you understand why you should consider adopting this technology, below, you'll find several reasons why blockchain can help transform your business.
Read on and discover what makes blockchain so special!
Before we get into the main reasons why you should embrace blockchain for business transformation, let's first answer the question: what is blockchain?
In short, a blockchain is a distributed ledger that stores transactions and data.
The information on a blockchain lives in a decentralised network that is spread across several computers. Each node in the network must approve every transaction before it becomes a part of the ledger.
Blockchain utilises what's called a consensus mechanism to guarantee the reliability of the data and keep the network secure.
There are two main approaches to this consensus: proof of work and proof of stake. The linked article does an excellent job of comparing proof of work and proof of stake. Which is right for your project? Read and decide for yourself!
Of course, transactions aren't the only thing that can be stored on a blockchain — any type of digital data can be kept there. While the most well-known application of blockchain technology is cryptocurrencies, blockchain has already been used for a wide range of other purposes as well in healthcare, education, and real estate sectors.
Now that you have a basic understanding of blockchain, let's take a look at some of its potential benefits for your business.
One of the main reasons why businesses are turning to the blockchain is that it provides enhanced security. Transactions on a blockchain are immutable and tamper-proof, so you can be confident that your data will remain safe.
What's more, blockchain utilises cryptography to protect the data from third-party interference, making it much harder for cyber criminals to steal information or make unauthorised changes to a digital ledger.
Another significant advantage of adopting blockchain technology is the level of transparency it offers. Because all transactions are publicly recorded in a decentralised system, all the information is easily verifiable.
It means that you can be sure every transaction is legitimate, and no one can make any changes to a digital ledger without the consent of others in the network.
Reducing business expenses without compromising productivity is the holy grail of every company, and blockchain can help you achieve this goal. As blockchain eliminates the need for intermediaries, it can help you save on transaction fees.
You also won't have to devote so much administrative effort to managing your records, allowing you to allocate your resources to other areas of your business.
Blockchain has the potential to streamline any collaborative process by providing a distributed database every party can access. It can be an excellent way to improve communication and coordination between different departments or organisations.
Of course, this advantage isn't limited to internal cooperation only. Blockchain can also help you work with other organisations more efficiently.
Imagine being able to track every step of your product's supply chain in real time. That's exactly what blockchain can help you do.
By implementing this technology, you can keep an eye on your goods throughout the entire process, starting with the manufacturing and all the way to the point when customers receive the final product. This level of insight can help you eliminate delays and bottlenecks, as well as improve the quality control of your goods.
The advantages don't end here. Blockchain-based supply chain management also lets you improve your relationship with customers.
As the process of ordering is transparent, clients know that the products they buy are genuine and that they will receive them in a timely manner. Trust is essential for business success, and blockchain can help you build it.
Smart contracts are one of the most promising applications of blockchain technology. Essentially, they are digital contracts stored on a blockchain and executed automatically when certain conditions are met.
You no longer have to worry about the contract being breached or the other party not holding up their end of the bargain, as the smart contract will enforce the terms of the agreement.
The second advantage of using smart contracts is the ability to execute legal actions without the need for a third party, such as a lawyer or notary. It can help you protect your best interests without incurring high costs along the way.
There's no doubt that blockchain can have a positive impact on your business. If you're looking for a way to improve security, reduce costs, or streamline your operations, this technology might be the right solution for you.
Of course, implementing it in your business isn't a decision to be taken lightly, so make sure to do your research and consult with experts before making the final call. It can take time to determine if you truly need this technology to expand your enterprise and take it to new heights.
Either way, blockchain technology has the potential to help companies with business transformation. The only thing left is to figure out whether it is helpful in your particular case.