Four Benefits of Blockchain Technology Apart from CryptocurrencyBy CIOApplications Europe
When we hear the term Blockchain, we are most likely to associate it with cryptocurrency, but there is more to this ever-growing and one of the most favored technologies of the enterprises. Blockchain has broader applications and could be a part of many everyday business-to-business transactions. These four trends of blockchain are making headlines as it could work within the organization to provide more flexible, streamlined and secure business processes and can also enable new business models.
1. Enable distributed, autonomous marketplaces
Blockchain enables asset owners to track and trade things of significant worth, for example, outstanding invoices—in a protected, transparent, private, and self-accommodating "chain" of transactions. This ability adds speed and adaptability to money and resource administration. For instance, utilizing verified invoices from enterprise resource planning (ERP) applications, organizations could raise required money rapidly or accelerate income by selling invoices on an autonomous invoice-factoring marketplace.
Autonomous marketplaces are likely to multiply within a given time frame. A blockchain-based transaction is secure as it doesn't require the need for a third-party mediation as software is a transparent and controlled framework that is visible to all transaction participants.
2. Reduce friction in business transactions
Managing expenditure is a significant challenge faced by many enterprises. Therefore enterprises must opt for a more self-governed blockchain network for its suppliers and partners. It will automate instant payments, smart contracts, and IoT-activated shipments. Without human mediation, errors and missing information are decreased across transactions, and the latter happens faster as buyers and sellers are directly connected to each other.
3. Manage and Secure decentralized private records with encryption
The most significant feature of blockchain is that each data record or element is encrypted. Traditionally, organizations used to rely on third parties for the safety of their shared information using firewalls and restricted access. But numerous high-profile data breaches led to the termination of this practice.
The blockchain is a more secure platform, as the data element is secured with encryption with a blockchain member's key, a hacker would need to have access to each core of each member to access all the data. This does not mean the blockchain is 100% secure but is relatively safer as it can prevent the exposure of this large data in a single act.
An intelligent application for this case could record kept by managers and educational institutions. Not merely even they but rather even industry affirmation bodies can include new capabilities, evaluations or work positions as they obtained. Imagine giving a worker a key for access to all his or her representative records as a significant aspect of a safe blockchain that (HR) likewise takes part in. People would have the capacity to share their school transcripts or work with bosses or other educational institutes securely and not depending upon faxing copies of certificates which can be forged otherwise.
4. Tracking the provenance of products and materials
Blockchain assures the product quality and safety by making it simpler to track and locate in-use article and documents. For instance, suppose an automobile producer frames a quality-centered blockchain that incorporates parts suppliers, sub-assembly creators, a quality-control supplier, and the public administrative body. If there should be a recall of blemished parts would then turn out to be substantially quicker and accordingly more viable.
Blockchain Is The Future
These are just four of many more ways; a blockchain technology can be utilized. We must have the proper knowledge of the technology and then consider pilot projects that can be beneficial for the organization. At times, using blockchain will require constructing new business forms or recreating existing ones using cloud applications. Be that as it may, it is an adaptable innovation that could profit any industry.
It will require some investment for blockchain to be available in a considerable level of innovation stacks, yet technology providers are building ways for easier ramp-ups of blockchain activities when clients are prepared.