The impact of the blockchain-based bitcoin on various industries has increased since its inception in 2009. And why not? The cryptocurrency offers a viable means of sending money to users worldwide. But beyond its financial potential, distributed ledgers have a lot more to offer. For example, blockchain technologies such as Neo and Ethereum feature cross-chain and smart contract capabilities that make recording transactions more flexible, secure, inexpensive, and transparent for users. Every business wants to improve its productivity, operations, and profitability, and blockchain helps them achieve it. Blockchain technology offers more than transaction and exchange value, and business of different sizes can benefit from the following solutions:
1. Effective management of supply chains
When it comes to supply-chain management, blockchain technology brings the twin benefits of cost-effectiveness and traceability to the table. Blockchain helps track the movement of products, their quantity, origin, and other important information. This provides an entirely new stage of transparency to business-to-business environments, simplifying different processes, including production-process assurance, payments, and ownership transfer.
2. Assurance of quality
It is not uncommon for an irregularity to be found somewhere along the business-supply chain. With blockchain technology, the point of origin can easily be traced, enabling businesses to conduct the necessary investigations and perform the required actions. For example, blockchain can help the food sector track the batch details, origination, and other relevant information that are an integral part of safety and quality assurance.
3. Role of blockchain in the accounting sector
By recording transactions via blockchain technology, businesses can essentially eradicate human error and safeguard data from tampering. This is possible because records undergo verification each time they pass from one blockchain node to another. Aside from the accuracy of business records, this process leaves a fully traceable trail that companies can audit easily.
If that’s not all, blockchain increases the efficiency of the whole accounting process on a fundamental level. Instead of maintaining individual records, businesses are now able to maintain a joint, single register. This also preserves the integrity of the financial records of the company.
4. Discover the power of smart contracts
One of the most far-reaching benefits of blockchain technology is smart contracts. Game-changing, not just for the project teams that developed them but for the businesses that utilize them as well, smart contracts eliminate the need for a third-party intermediary in the acceptance or disapproval of vital public documents. Smart contracts rely on code to rapidly verify the authenticity of contracts. No wonder various crypto projects now use smart contracts to generate official documents in numerous industries, from real estate to global trade, legal to healthcare.
The IT teams capable of developing and marketing this tech to the fullest extent can sell this as a business-to-business service. This has limitless value because smart contracts help business save money on legal fees, and also remove the need for continuous back-and-forth document negotiation. So, if you want to avoid bottlenecking the growth of your business while processing multiple communications on a regular basis, then smart contracts are the perfect choice for you. Thanks to these new-age documents, agreements can now be automatically signed, validated, and enforced via a blockchain construct.
5. Simplify the process of voting
Integrating blockchain technology in different aspects of voting comes to down to the idea of trust. At present, many opportunities related to government elections are pursued. For example, the Russian government intends to verify the effectiveness of blockchain systems in local elections. This will reduce the chances of electoral fraud, which has been a big problem with electronic voting machines. Moreover, NASDAQ has also begun to leverage blockchain tech as a way of facilitating shareholder voting.
6. Impact of blockchain on stock exchanges
The idea of utilizing blockchain for commodities trading and securities is not new. Thanks to the reliable yet open nature of blockchain tech, stock exchanges are harnessing the technology to move to the next level. For example, the Australian stock exchange has already made up its mind to move to a blockchain-based system for their operations.
7. Decentralized apps
Globally, the way people interact with one another has undergone a sea change thanks to the growth of mobile applications. But there exists one key problem with the contemporary application industry — centralization of power. Usually, Google and Apple are in charge of determining which apps users can access. Some apps experience censorship by national governments. But in the case of decentralized apps, there is no single authority determining who can or cannot access them. This impacts the wider economy positively.
Decentralized apps (Daaps) can replace and enhance the current crop of mobile applications. Companies that successfully develop Dapps will have a significant role to play in the future of P2P sharing economy.
8. Improving energy supply
Businesses can be divided into two categories — those that effectively manage monthly energy bills and those that wonder how they rack up such high utility expenditures. In many parts of the world, commercial households and establishments utilize blockchain-based transactive grids to track the usage of sustainable energy solutions accurately.
Blockchain systems also help improve the monitoring of clean energy. This helps overcome the problem of knowing if the power sent to the grid comes from solar energy, wind, or fossil fuels. Normally, government-issued tradable certificates are used to monitor renewable energy. Unfortunately, these certificates fall short of serving their actual purpose. But blockchain technology can revolutionize the energy supply industry, making it more streamlined.
9. Dynamic, efficient pricing
More often than not, creative content gets mispriced. However, it is possible to make the pricing more dynamic based on the demand for creative content. The price may vary as per supply and demand. Also, artists are in charge of pricing and can set the final prices without relying on intermediaries. Since blockchain brings artists closer to their creative pieces, they provide a stronger voice in pricing and enable them to offer discounts when necessary.
Blockchain technology: The potential is limitless
Blockchain has potentially limitless benefits for different industries, ranging from operations to productivity. To gain success with blockchain technology, a company needs to find the right partner, right technology, and determine the best applications of the technology.
Featured image: Shutterstock
More Blockchain articles
- SMBs guide to combatting and preventing cryptojacking attacks
- Blockchain in the enterprise: 6 real-world use cases
- Cryptocurrency is dead! Long live cryptocurrency!
- Oracle Blockchain Applications provide visibility through the supply chain
- Blockchain obstacles preventing the technology from becoming great