The blockchain is a secure, decentralized ledger that allows for efficient data exchange between multiple parties. Its vast and diverse applications include everything from healthcare to financial services to supply chain management. There is an estimation that 10% of all global GDPs will be available on blockchain by 2025.
However, many people are still unsure how to use this technology to improve their business operations. This post will explore some top ways businesses can leverage blockchain technology to increase productivity across their organizations.
Table of Contents
Automated smart contract systems
Smart contracts are a computer protocol intended to digitally facilitate, verify, and enforce the negotiation or performance of a contract. Proposed originally by Nick Szabo in 1994, they gained prominence with the publication of the Ethereum white paper in late 2013. He proposed using them to implement a decentralized virtual machine. Businesses deployed the first smart contract system built on Ethereum in 2014.
Since then, the industry has grown exponentially and shows no signs of slowing down anytime soon. As blockchain technology continues to innovate exponentially, it’s important for businesses that want to stay competitive. Also, even thrive in this space to understand how smart contracts can benefit their bottom line. It is what you need from your partners when implementing them into your business model!
International financial transactions
International financial transactions are another area where blockchain is likely to have a transformative impact. In the not-too-distant future, we may see businesses worldwide buying and selling goods with each other through smart contracts, p2p exchanges, and wallets. Moreover, agreements between two parties are automatic after meeting specific conditions.
Here’s how it would work: A business in China wants to sell widgets (let’s call them “widgetos”) to a company in Guatemala. They can create a smart contract on a blockchain network that specifies:
- What kind of widgets they want to sell—the price they will sell them at (in ether), and the number they will sell
- When those widgets need to be delivered by. This could be anywhere from immediately up until six months from now.
Once both parties agree on these terms, their deal is automatically complete. This is after these conditions have been met (i.e., once payment has been made).
As a large company entering the blockchain transaction model, you are going to have to make substantial investments in either Bitcoin or any other reputable digital currency as a hedge and utility for upcoming agreements. This is best done over an OTC desk where professionals service bulk orders of cryptocurrencies. Trading Browser rates operators of this kind with the intention of protecting the end-user.
Blockchain used in the HR
With blockchain, you can leverage your HR to improve the processes that matter most. Blockchain technology is already available in employee onboarding, training, and performance reviews. Moreover, employers are finding value in these applications.
- Employee onboarding: Since its launch on the Ethereum network in 2017, Bloom has received acclaim for its “matchmaking” service that connects job seekers with hiring managers. The platform uses artificial intelligence (AI) to automate finding candidates based on their skills, qualifications, and personality traits.
- Training: Learning management systems (LMS) are challenging to use. This is because they’re designed for a wide range of purposes. This is from enterprise training programs to internal business processes like sales force automation or help desk ticketing systems. An LMS built on blockchain technology would be easier for businesses to customize based on their needs and significantly less expensive than current solutions.
- Performance reviews: According to recent research by LinkedIn found, 90% of employees believe an annual review should be automated. Hence, it’s easier for companies to get feedback from workers. This is while saving time and money.
Reduce marketing costs
Businesses can use blockchain to collect data on customers and target them with more personalized marketing. With blockchain, you can now know who is engaging with your content. Also, which channel they use and what time of day they are most likely to engage with it. Moreover, even how many people have seen each piece of content.
This plays into the fact that today’s customer is more informed than ever before. They want to feel like their business is important to you. Therefore, it would increase their trust in the company if you could automate tasks like sending emails or personalizing messages based on behavioral patterns (i.e., past purchases). Also, make them more likely to purchase from you again in the future.
Supply chain improvements
Businesses can leverage blockchain to improve their supply chain. Here are a few ways how:
- Traceability of goods. Blockchain provides a way to track every step in the supply chain. Hence, you can quickly find out where something went wrong if it does.
- Reduce the risk of fraud, theft, damage, and contamination. Knowing where your products are at all times, you’ll know when they’re stolen or tampered with before reaching consumers and can take action accordingly.
- Reduce the risk of errors and delays. The nature of blockchain is such that once information has been recorded, it cannot be altered or deleted. Therefore, businesses can easily correct any mistakes made along the way by going back into the ledger and correcting them digitally rather than having to go through physical paperwork.
The first step in any blockchain implementation is collecting data. The blockchain is a distributed ledger, a database shared by all nodes (computers) on a network. Because of this, there are many advantages to using blockchain technology:
- It’s decentralized
- It’s replicated and synchronized over multiple nodes in real-time
- It uses cryptographic algorithms to ensure immutability
Audits are a way to verify the accuracy of information. Audits can be done manually or automatically, depending on the data type, but blockchain provides an ideal way to automate audits.
A blockchain audit is when you take all your information, put it into a blockchain, and then use it as your record keeper. By putting your information in this digital ledger, you can verify transactions and cross-reference them with other pieces of information automatically. You don’t have to wait for someone else to do it; you have control over maintaining accurate records using blockchain technology!
Insurance is a business that has been going through many changes in recent years. With the growth of information technology and the internet, insurance companies have become increasingly focused on improving their customer experience and increasing productivity and efficiency.
One way they are achieving this is by leveraging blockchain technology. Blockchain allows insurance companies to store and process data more securely. Thus, making it easier to serve their customers, who can now access information about their policies at any time with just a few clicks or taps on their phones.
The secure storage and processing capabilities of blockchain also allow insurance companies to reduce costs since they no longer need to hire expensive IT staff or rent space in data centers.