6 Ways Blockchain Technology can Impact your Business
Posted by Your Team in India on June 14th, 2019
The blockchain is more like a record keeping system inter-linked using cryptography.
Every node has a cryptographic hash from its previous node. Each node comes with time-stamp and transaction data. This makes it immune to any data tampering.
Recently, it has gained great popularity for its multipurpose functionality. And blockchain's integration with AI is helping increase its productivity.
The blockchain is not only used for managing cryptocurrency but also help in managing business firm operations.
Blockchain helps achieve business targets and positively impacts their operations. In the case of business firms, blockchain works similarly as it works in a bank.
A transaction creates a secured block. It is then added to a chain for added security which continues to grow with the number of transactions made.
Miners act as third-party verifiers. They re-check the security of the blockchain and transactions made. This eliminates the need for any middleman and helps reduce the costs involved.
There are three processes involved in making any transaction:
1. Transaction Creation: For payment, credit or loan transactions the information is stored in a block. It is recorded across various levels in ledgers which are not controlled by any bank.
2. Transaction Verification: After the transaction is complete, it is verified. Then it is recorded amongst several ledgers to prevent hacking and fraud.
3. Transaction Enforcement: After verification, there is the creation of a smart contract. It contains information about the transaction and enforced.
This holds the terms of agreement for its validity until a certain condition is met before the payment is made. After verification, the terms of the transaction are enforceable. It might seem tedious, but the process is made in real-time.
Imagine the benefit of this process if it is enforced in small businesses. It will save not only time but also a lot of money.
Let us take a look at various ways in which blockchain can make an impact on business functions:
1. Streamlining Finances:
The blockchain is a finance aiding technology and has evolved over the years. It came to notice when crypto-currencies like Bitcoins come into play as they transfer funds easily and securely as compared to hard cash.
There is little or no cost involved. The service is becoming popular globally because of decentralization. Blockchain kills the opportunity of intermediaries to earn money.
The cost involved drops to a great extent among financial set-ups. Crypto-currencies are selling like hotcakes. Payments involving cryptocurrency are popular with a large number of business organizations.
2. Availability of Smart contracts:
A smart contract ensures payment only when a part or entire condition of an agreement if complete. The advantage of Smart contracts is decentralization and automation. Smart contracts ensure the payment only on completion of the terms of the agreement.
It saves the business or organizations from legal fees and time-consuming operations. It also decreases instances of fraud and intermediaries involved.
When a business organization employs Blockchain aided Smart contract service, it frees the company of consulting a specialized financial set-up meant for managing the payment and cash department.
This, in turn, saves a lot of money in this case since the smart contract is capable of doing it all by itself.
Smart contract reduces the huge paperwork and holds better credibility than traditional agreements. If a certain condition is not met; the blockchain stops the payment. It is thereby ensuring the completion of work as well.
3. Better Cloud Storage:
A business organization holds a lot of confidential and important information. This information requires special storage.
Blockchain handles the storage woes of the business firm. It offers a secure, faster and cheap storage cloud service through blockchain technology.
4. Online Biometrics:
Data security and fraud worry business organizations.
Not only in India but globally as well. It costs an estimated billion every year due to fraud and spam agreements.
The security provided by blockchain technology is great. It exceeds expectations when augmented with digital identification.
At present, the security system relies on a password or pin system. It may or may not be present on a secured system. This brought the need for public key cryptography. It verifies the identity of the user over the blockchain and ensures double security with the development of unique digital signatures.
Blockchain biometrics can see a possible future in various important documents. This includes IDs, Passports, birth certificates, and online account integrations. For added security, companies can hire blockchain developers & add more security layers to make hacking or theft of data impossible.
5. Blockchain Redemption Cards and Vouchers:
For attracting customers and ensuring loyalty to the brand, blockchain might come handy.
Redemption and loyalty cards are the best marketing techniques used worldwide. They often make the customer spend more than what they desire. But the production of such cards is a costly affair given the middlemen involved.
Also, most of the times, cards don’t reach the intended customers. This defeats the primary motive of their creation. Blockchain can help in creating digital cards specifically for a particular customer.
It will be redeemable from anywhere and anytime thereby negating instances of fraud. It can also trade on the decentralized ledger maintained on clouds. This will ensure that there is no scam in issuing of cards and customer receives the full benefit.
6. Digital Notary Services:
Notary documents are essential for everyone nowadays.
Be it a tenant renting a villa or a businessperson giving out tenders for raw material supplies. Notary documents are a must for many tasks. But issuing and verification of notary documents is a time-consuming and frustrating process.
Blockchain ensures that a business spends the least time in such tedious processes. This is achievable by issuing a digital notary service. It is not only efficient but cheap at the same time.
It includes features like a fingerprint or sticking time of document creation. It is verifiable over blockchain, recorded and stored over the same cloud.
The two-way encryption guarantees the security of personal data as it is accessible using two different keys only.
Business arena has turned into a huge battle of supremacy to attract the customers. Marketers are toiling for bringing out innovative strategies. They aim to improve their sales and to harness the most significant output through the least inputs.
The recent rise of blockchain has earned a lot of credibility among the public as well as professional sector. This offers exceptional data security and great satisfaction among the customers.
The blockchain is a versatile technology ready to be augmented with any software to work its magic. It is thereby causing more and more companies to trust the blockchain technology and accepting it for overall development.
It might need customization and personalization in a particular department but take our word; it would be worth every penny spent on it!
About the AuthorYour Team in India
Joined: May 8th, 2019
Articles Posted: 2
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