Blockchain is arguably the next big thing after the emergence of electricity and the internet. It has started transforming businesses at an unimaginable rate, and those who have not been using the technology are now trying hard to get acquainted, master, and apply it to their organizational processes.
Blockchain is very critical to the 21st-century business because it is a foundational technology with the potential to be tweaked in many ways to suit diverse business operational needs.
Just at the infant stage of the internet, blockchain started to propel the lives of people and businesses alike.
What you should know
Blockchain is a digital ledger where transactions are processed. The name originated from its concept, where records known as ‘Blocks’ are connected to a single linear pattern, known as ‘Chain’ – hence, Blockchain.
Some of the advantages of Blockchain technology in businesses include;
- Ease of monitoring transactions – It makes it easier for businesses to track their products and transactions, because of its integrated transparency properties, providing operational managers the tools for a higher level of authenticity, reliability, and most importantly accountability.
- Site security – A prominent American based digital currency exchange, Coinbase, uses the technology to facilitate payment processes for its customers, and to date has never been hacked, because of its high level of integration with the technology.
- Profit – Another credible example is the world-renowned payment company, Visa. Four years ago, it introduced a blockchain platform that would deal with business-to-business payment services, which has helped to increase its profit margins over the years.
- Reduces operational costs – It enables the removal of intermediaries or unnecessary middlemen linked to record-keeping and reconciliation of transactions.
- Enhances credibility – It can be used to facilitate digital contracts and safeguarding deals, which makes it difficult to for the contracts to be forged or altered in any way, thereby enhancing credibility.
- Simplifies supply chain management – It makes the supply chain management process of businesses simpler; thus, offering a cost-effective method of tracking products and services without inefficiencies and guess works. Unilever, a consumer goods juggernaut, is presently using the technology in monitoring transactions on its supply chain, and it has reduced operating costs in that regard.
- Finally, it is important to note that Blockchain will assist in curbing global complexity by combining decentralization, security, and transparency.