Benefits of blockchain for business

24
Aug

How to Boost Bottom Line Revenue by 60X with Blockchain

When I first met Bradley Lyons, the CEO of his namesake company, he told me he had a new idea that was going to save his business from the 2020 pandemic downturn. His company is a thriving mid-sized logistics business with a strong focus on engaging in the latest digital innovations. Bradley’s strategy is to always stay ahead of the curve where technology is concerned which has served him well as he grew from being a few men show to leading an international team of hundreds across 3 countries and 5 offices. 

The more we talked about it, the more excited I got about it too. Bradley was convinced this would be a game-changer for his company unlike so many others in their industry who were not as forward-thinking with their digital transformation strategies as they could have been. By solving delayed payments, lost shipments, and employee turnover, Bradly could boost their bottom line revenue by as much as 60x over the next few years.

The conversation quickly shifted to how blockchain could be the best solution for their immediate challenges. Blockchain is a secure, transparent ledger that anyone can see – but no one can change without permission. 

Blockchain technology has the potential to revolutionize every industry and business sector. As businesses across the world explore Blockchain, business leaders need to understand how Blockchain functions as it transforms from a technology that’s still in its infancy into core infrastructure for the digital age.

Most businesses today lose money due to procedural delays, human error, and fees paid to middlemen. Blockchain can be a cost-effective tool for businesses of all sizes, providing an easier way to hire better employees, make more efficient and faster payments globally, and increase marketing campaigns by knowing what customers want better than ever before.

In this article, we’ll dive into how Blockchain can help boost your bottom line revenues and what you need to do in order to get started today!

Get Paid Faster

Smart contracts, a Blockchain application, are a way to make sure that the person who promised to pay you does it. If they don’t, then you get your goods back. That means parties can settle disputes without the need for lawyers. This alone has the potential to save big companies billions in legal and other costs.

A smart contract is a self-executing program that exists on the blockchain network and ensures all parties in the agreement do what they are supposed to. Blockchain allows for the creation of smart contracts that execute themselves and help reduce the cost of transactions as well as speed up payments.

Build Better Teams

“The cost of replacing an individual employee can range from one-half to two times the employee’s annual salary.” – reports Gallup.

U.S. businesses can save $1 trillion by reducing employee turnover if they can hire for skills as well as cultural fit. However, businesses in need of employees are at a disadvantage when trustworthy data is unavailable, as they must rely on traditional verification methods. Having trustworthy data that is readily available helps you find the right people to improve your business. If you find a candidate with impressive qualifications, you can quickly confirm the authenticity of those credentials and hire them on the spot. 

Blockchain technology also allows for the verification of soft skills, as well as extracurricular activities, which can help employers hire employees that present a better cultural fit for the team.

Sell More Stuff

Businesses can use Blockchain to learn more about customers to build stronger customer relations. Blockchain facilitates reliable identity management. Your customers and your employees have digital IDs that make it easy to verify their identities. If this information is stored on a blockchain network, you can increase revenue by reducing the risk of cybercrime such as fraud, theft, money laundering, etc

The blockchain is a digital ledger of transactions that can’t be tampered with, meaning the person is in control of their own data. With complete transaction records, you and your customers have a better understanding of how it has progressed over time. Blockchain technology offers new opportunities for businesses to learn more about their customers, increase loyalty and achieve growth.

Safeguard Your Data

According to an IBM study, the average cost involved in resolving a data security breach can be significant; $7.97M per incident on average for larger companies. The impact of downtime varies wildly – from minor disruption to a total shutdown of every business function. Increasing safety levels is a key component of every industry’s bottom line, and blockchain cybersecurity is at the forefront.

Blockchain provides an inherent level of security as it is decentralized, making it the perfect technology for cybersecurity. Blockchain has a vast array of applications in data sharing and encryption across industries that use data – that is essentially every industry. Blockchain is a decentralized ledger that records transactions. Blockchain ensures data security, with encrypted blocks of information stored across multiple servers so it’s not vulnerable to hackers or other cyberattacks. A blockchain database can be used for storing all sorts of digital assets and transaction types.

Run Better Marketing Campaigns

More and more companies need to find a way to cut through the noise when it comes to marketing. Even if you’ve already found success using known techniques, such as social media posts and TV advertisements, blockchain could lead to a better payoff.

Data from the blockchain can be used by marketers to keep track of customer information. With this data, skilled marketers can create good campaigns that get people to buy more things and make more money.

Changes made during development to a campaign or other media release can be easily identified on the blockchain. If you want to know who changed something at what time, look no further than this convenient technology.

Blockchain allows marketers to verify the legitimacy of their marketing campaigns. With less bot activity compromising the validity of your numbers, you get a higher yield for every dollar spent on marketing.

What do you think are the best uses for Blockchain in your business? 

Blockchain is a technology that has the potential to change many industries and sectors for good – as it did for Bradly and his logistics company. It’s more than just Bitcoin with wide-ranging applications from finance to healthcare, government, law enforcement, and supply chains. Forward-thinkers are building innovative products and services about blockchain applications while other mature companies are using blockchain to make their business run more efficiently and profitable. The world of blockchain digital transformation can be intimidating if you don’t have experience in it. 

Schedule an exploratory call with an expert so you know what your options are when exploring how this new tech could impact your company or industry.

 

22
Jul

Top 10 Benefits of Blockchain Technology for Businesses

Last 2009, the launch of Bitcoin moved blockchain from theoretical use to real-world, indicating that it was working. Since then, businesses have also tested how blockchain technology works for them.

Blockchain is a decentralized digital ledger system that records every transaction without a financial intermediary such as a bank. Big companies, government agencies, and charity organizations are being used to enhance existing processes and allow new business models.

The benefit of blockchain comes from its ability to share data across organizations in a fast and secure manner – without requiring anyone entity to take responsibility for protecting the data or enabling the transactions.

Blockchain and its features can provide numerous benefits to businesses, whether they use a public blockchain network or private or permission blockchain-based apps.

Now, what are the benefits of blockchain technology? Let’s start with the top 10 blockchain benefits.

10 Benefits of Blockchain Technology for Businesses

1. Enhances transparency

One of the most well-known advantages of blockchain is its ability to provide transparency. This feature may seem to conflict with blockchain’s promise for privacy and security, but both of these benefits can function in tandem.

On a public blockchain, all transactions are searchable and traceable. Users can search a complete ledger of wallets that contain Dragons to see how they are being used.

The level of transparency may provide customers with complete information of the production and distribution cycles of purchases made at their local grocery store or from major online retailers such as Amazon.

2. Greater Trust

Blockchain builds trust amongst entities when trust is either lacking or unproven. As a result, these organizations can participate in business dealings, including transactions and data sharing that they would not have done otherwise or would have needed the assistance of an intermediary to do.

One of the most often mentioned benefits of blockchain is the improvement of trust. Its value is apparent in early blockchain use cases that enabled transactions between businesses that did not have direct relationships but need to share data or payments. Bitcoin and cryptocurrencies, in general, are iconic examples of how blockchain allows trust between people who do not know one other.

3. Improved the security and privacy

Another significant benefit of blockchain-enabled technologies is their computer system security. The enhanced protection provided by blockchain comes from how the technology works: blockchain provides an unchangeable record of transactions with end-to-end encryption, which prevents fraud and illegal activity.

Moreover, data on the blockchain is stored throughout the computer network, making it very difficult to hack data on servers, unlike conventional computer systems. Furthermore, blockchain can handle privacy issues better than conventional computer systems by encrypting data and requiring permission to limit access.

4. Reduced costs for business

The blockchain nature can also help businesses to save money. It improves transactional efficiency. It also minimizes manual activities like data aggregation and editing, as well as reporting and auditing. Experts emphasized the benefits that financial institutions experience when using blockchain, stating that blockchain’s capacity to expedite clearing and settlement immediately translates into process cost savings.

In general, blockchain helps businesses save money by removing the middlemen – suppliers and third-party providers – who have traditionally supplied the processing that blockchain can perform.

5. Speed Transactions

Blockchain can handle transactions quicker than traditional methods since it eliminates intermediaries and eliminates remaining manual transactions. In some cases, blockchain can process a transaction in minutes or less.

However, times may vary; how quickly blockchain-based transactions can process depends on various factors, such as the size of each data block and network traffic. Nevertheless, experts have concluded that blockchain generally beats other rapid procedures and technologies.

6. Decentralization

One of the main reasons Bitcoin’s popularity is growing is due to decentralization. In this case of Bitcoin, miners from all around the globe keep an eye on and protect the Bitcoin blockchain’s integrity. By performing cryptographic computations, they validate transactions on the Bitcoin network.

Since Bitcoin is decentralized, it is difficult for outside organizations such as governments to manipulate or inflate it. This decentralization provides:

  • Quicker and cheaper worldwide transactions.
  • A solid store of value.
  • Resistance to censorship.

An attacker would need to possess 51% of the Bitcoin network’s global hash power to compromise it, which is costly and not sustainable over time.

7. Traceability and Visibility

With the blockchain ledger, an audit trail is present to track where the products originated each time exchange of goods is recorded on a Blockchain. It can assist not only enhance security and fraud prevention in exchange-related companies and help verify the validity of exchanged assets. The supply chain is more transparent than ever before, thanks to blockchain. It can use in medicine to trace the supply chain from manufacturer to distributor or in the crafts to give irrefutable proof of ownership. Organizations can also benefit from blockchain traceability by adopting it in-house.

8. Increased Data Security

Point-to-point encryption helps in the security of data while it is in transit and storage. Transaction blockchains are a safe method to store transaction data and transaction ordering. A strong P2P distribution of identical copies of the blockchain over a cloud computing network provides a third layer of security. Distributed data storage is better than a single-point data storage design, which has a greater chance of data breach. Data files are broken down into encrypted pieces, stored on multiple nodes, perhaps throughout different countries.

9. Speed Disaster Recovery

When blockchain technology is used, a record of transactions is widely disseminated. A blockchain is so helpful because it is made public or distributed to many authorized users. The failure of a single network node does not affect the original stock of the blockchain.

While any node is offline, the other nodes continue to work and update the blockchain. Any network node that experiences a failure can quickly catch up to the current blockchain database state when the node comes back online based on the transactional record of the blockchain entries, particularly if they have a secure timestamp.

10. Cloud Computing with Hyperledger

Hyperledger is a blockchain technology created as open-source apps as part of a collaborative initiative funded by The Linux Foundation. Multiple copies of an identical blockchain record make illegal data processing exponentially more difficult. The use of peer-to-peer networks to decentralize record-keeping provides a complete audit trail. Unlike bitcoin, there is no need or desire for privacy among hyper ledger users. These records can share in the cloud through cloud computing, and different parties can store identical copies for audit verification. The benefit is that the national government knows and controls who all the authorized users are; nevertheless, it is the users, not the central power, who keep the hyper-ledger with their efforts.

Final Thoughts

Finally, this brings us to the end of our discussion of the main advantages of blockchain technology. Now that you understand the significance of blockchain technology, you can form an opinion about using it.

Blockchain is a game-changing technology that will have a significant effect on every sector. Our focus was limited to the essential sectors so that you could relate to and understand their benefits. But, in the end, the decision is entirely yours. Hopefully, this article will help you in making the best choice to boost your business.

Author Bio

Jennysis Lajom is an IT graduate, a chemist, an eCommerce business owner, and a Korean drama fan. Her passion for digital marketing led her to a career in graphic design, editing, and social media marketing. She is also one of the resident SEO writers in the Softvire US and Softvire Australia