Can you think of one industry that is untouched by technology? No, right? Businesses would struggle to survive without new technology and innovations in the fast-paced and highly competitive landscape. As competition grows globally, companies need to be more alert than ever before to stay relevant and cut through the competition.
Historically, companies embracing innovations and technological advancements have zoomed past their competition and risen above the rest. Thus, businesses should be on the lookout for game-changing and disruptive technologies that help them gain a competitive edge. For these reasons, many businesses have prioritized digital transformation, which involves a streamlined adoption of new technologies to improve performance, internal processes, and more.
Artificial intelligence (AI), machine learning, augmented reality (AR), virtual reality (VR), industrial automation, and blockchain are some of the latest path-breaking technologies that are paving the way for through-and-through digital transformation in many businesses. In the same tune, blockchain is enabling business transformation and how!
The hype around blockchain is only growing. A large chunk of companies has stated that they are “actively involved” with blockchain technology. A PwC report states that around 84% of companies intend to use or are already using blockchain [1].
In this article, we will investigate the role of blockchain in business and how blockchain is enabling business transformation. The technology that has been the driving force of cryptocurrencies has spread its wings across other walks of life.
Let’s begin by understanding what exactly is blockchain. We will then move on to understand the applications of blockchain in business and what lies ahead down this path in the future.
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Understanding blockchain technology and the hype around it
Often used interchangeably with Bitcoin, blockchain is the technology behind cryptocurrencies. While the adoption of blockchain technology saw a steady rise as cryptocurrencies became increasingly popular, businesses are toeing the line and gradually discovering its benefits.
So, what exactly is a blockchain and how is blockchain enabling business transformation?
Let’s find out.
Blockchain is a decentralised, irreversible database that makes it simpler to track assets and record transactions in a corporate network. An asset may be physical (such as a home, car, money, or land) or intangible (intellectual property, patents, copyrights, branding). Practically, anything of value may be recorded and traded on a blockchain network, lowering risk and increasing efficiency for all parties.
Many industrialists and business owners believe blockchain is one of the key technologies that will speed up business transformation in the future. Although blockchain gained noteworthy momentum during the rise of crypto, today, blockchain in business is becoming popular because of a myriad of reasons.
It is critical to understand that blockchain for business applications is largely built on a distributed ledger that is shared among trusted partners. The technology’s peer-to-peer topology plays a crucial role in driving data resiliency, transparency, and security while minimizing costs related to running a business.
Businesses that are looking to advance to the next level need to leverage the benefits of blockchain at the earliest with a clear mindset. The onus is now on businesses to discover how blockchain can aid in business transformation.
Application of blockchain in business
Now, that we have a fair understanding of blockchain technology, let us look at how blockchain can help businesses flourish. Blockchain has all the ingredients to overcome all the barriers in front of businesses today. Thus, it is just a matter of time before blockchain will gain mainstream acceptance from businesses from around the world.
Here are a few areas within a business where blockchain can work its magic and turn things around.
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Blockchain for business will introduce smart contracts
While we are discussing blockchain for business transformation, it is impossible to not mention smart contracts. Arguably, the concept of smart contracts is one of the most noteworthy blockchain applications that will aid in business transformation.
But, what do we mean by smart contracts?
As the name suggests, smart contracts are digital contracts in which the terms and conditions of all the parties are written in code. All codes are secured on a decentralized blockchain system, ensuring optimal security. In other words, the code is tamper-proof.
Thus, when the agreed terms are fulfilled by both parties, associated conditions are executed. If any party breaches the contract, the agreement is overturned immediately. Therefore, the adoption of smart contracts enables firms to take legal action without the help of a regulating attorney, a government representative, or other middlemen who charge a fee to resolve disputes.
2. Blockchain for business will streamline digital payments
We are excited about this one. The marriage between blockchain and digital payments was on the cards for a while now. Now, it has become a reality. Digital payments conducted on the decentralized blockchain networks will be one of the key enablers of business transformation in the future. How?
The entry of blockchain in the digital payments space will bring about some exciting changes. One, the need for third parties will vanish. Second, businesses would not have to deal with various documents including invoices, bills, and more. Last, blockchain has streamlined cash flow across multiple businesses thus far and going by the current trends, that will not change soon.
3. Blockchain will tighten security
Introducing robust security measures in the environment is another major application of blockchain in business.
The technology’s decentralisation and transparency capabilities motivate network customers to store and verify some or all of the data that is saved on the network. The main distinction between conventional and blockchain databases is their decentralisation. The blockchain network’s increased complexity and security measures reduce the likelihood of cyberattacks.
The functionality for users to preserve and keep their identity as well as understand how they can access and use their information for any reason is made possible by the usage of blockchain in business for digital identity.
4. Blockchain will streamline financial management
Businesses currently spend lots of money upgrading existing infrastructure. Therefore, more and more businesses are leaning toward finding cost-effective solutions that cut down these expenses, toward that lowers expenses and existing processes because of this. With blockchain entering the fray, businesses can save a lot of capital that they usually pay to third-party vendors.
Since blockchain technology excludes an inherited centralised person involved, you do not pay the vendor fees associated with the relevant blockchain development company. While authenticating a transaction, there is significantly less need for interaction, which frees up time for other tasks. This is how blockchain technology can help firms march toward better, economical, and organized financial management.
5. Blockchain to improve supply chain management
Here is how blockchain can help businesses facilitate smooth supply chain management. The technology enables SMEs to trace their goods/services at every stage of the process, from production through delivery to the customer. With this transparency and immutability, businesses can deal with counterfeiting, track delays in product delivery, and be assured that security is not compromised at any stage.
6. Build a dream team with blockchain
Who would have thought that blockchain would play a role in how businesses recruit employees? Yes, you read that right. Blockchain technology is playing an essential role in transforming how businesses build a workforce. Here’s how.
We have all heard about how a few unethical people change a few important details to create fake, yet professional-looking documents. From creating fake university degree certificates to brandishing fake experience letters, recruitment teams have to deal with all kinds of petty and serious crimes. Blockchain puts an end to this, which is exactly why it will play an important role in improving the overall hiring process along with the credibility of resources that are onboarded.
This helps companies reduce the overall time needed to hire candidates and review paperwork. As a result, businesses are working tirelessly to create ties with reputable blockchain development firms and work with blockchain applications that will aid their hiring process.
7. Can blockchain improve customer engagement?
Blockchain technology also helps businesses find new ways to engage with a larger customer base.
The combination of blockchain technology and customer engagement opens up several possibilities and advantages. We can accomplish this by choosing the top Blockchain-as-a-Service company. This entails giving users the power to manage their personal information, introducing transparency into business models, encouraging rapid transactions, and assisting business owners and marketers in recognising and nurturing a loyal following.
Go blockchain or go home – blockchain stares at a bright future
As seen in this article, blockchain has all the features to enable business transformation. We expect businesses that are looking to jump to the next level to stay abreast with the latest ongoings in blockchain development and the blockchain ecosystem. As global spending on blockchain solutions continues to rise, it is a good time to infuse this innovative technology into the core business processes.
Businesses need to get in touch with trusted blockchain development companies if they are wondering where to start their business transformation journey.
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Feature Image Source: Image by Davidstankiewicz used under the license Attribution-Share Alike 4.0 International
Image 1 Source: rawpixel.com
Image 2 Source: Photo by Norbert Kundrak on Unsplash
Sources:
[1] Rooney. K (2018) “84% of companies are dabbling in blockchain, new survey says” CNBC [online] Accessed [December 2022]
