Blockchain is a modern form of database technology and public electronic ledger that is set to skyrocket to the value of US$20 billion by 2024.
One of the best facets of this type of technology is the decentralized ledger that is used around the world for data storage and encryption, most notably used for facilitating cryptocurrency and is a way of storing and sharing data that is very transparent and secure.
The blockchain process is a threefold process that includes creating, verifying and then enforcing the transaction. Each operation is recorded as a block, on what is considered a chain (hence the name) and then the successive and following transaction is added to the end of the chain, which means all previous transactions are near impossible to alter.
There are a number of direct benefits of blockchain technology that businesses can really capitalize on and is never too soon to think about incorporating it.
Using blockchain in payment methods
The number of daily financial transactions in Australia are in the billions. By utilising blockchain as part of the payment process, businesses will be able to eliminate the need for a third party organization, such as a bank or credit card company. This is going to see a significant reduction in costs and unnecessary bank fees. Consumers alone spend AUD$12.5 billion on fees each year, let alone the exorbitant amounts that businesses spend.
Businesses will also be positioned to easily accept cryptocurrencies, such as the infamous Bitcoin, as forms of payment, in small or large sums.
Improving business processes and systems
Savvy businesses are always looking to improve their bottom line, improve efficiency and reduce costs of their business processes and operations. Blockchain will enable that with better and more secure data storage that can be tracked by everyone involved.
What’s more, with blockchain technology, sees the development of “smart contracts” for services and products that are supplied on a contractual basis.
Smart contracts will use technology and smart devices to deliver their services under certain stringent conditions. For example, renters can enter an agreement for a home using a smart contract that executes smart locks that will lock the renters out should they not meet your payments.
Additionally, the benefits of blockchain are that the information is secure and private and provides less bias, so either party can trust the contract or business process they are entering in to or the information that is produced retrospectively.
The supply chain gets clearer
Transactions can be monitored and traced easily from way back using blockchain. Not only will this benefit the end customer but businesses have the opportunity to review and improve processes and tighten any cost drainages along the way.
Importantly, it will provide far more secure and transparent monitoring of the dealings that comprise this chain of events in any commercial supply chain.
Because all activity is recorded and timestamped and is linked to a previous chain in the block data is more secure and any fraudulent activity or corruption can be tracked and traced, even though it’s public. The peace of mind that this kind of security and reduction in vulnerability affords is priceless when it comes to business practice.
This is particularly pertinent where organizations store their data in the cloud and require SAP integration of third party software. Users need their information protected from hackers, human error and other forms of inadvertent data loss as well as prevention of identity theft and data tampering. Brilliantly, hacks and treacherous interactions are stopped in their midst before any real damage or data loss can occur.
It’s even believed to be secure enough for the US Military to deem it worthy of use.
Enhanced enterprise mobility
In the modern workplace, there are a number of employee working styles and to get the best performance and the best employees, it’s often important to offer a mobile and flexible business system.
With more and more companies adopting adaptable enterprise mobility, where employees, contractors and suppliers, can access the organization’s documents, processes, information and systems, blockchain enables the entire workforce to work remotely and not limit your talent to the one city that your business exists in.
With blockchain, you can support this process by knowing your data is safe and that those involved in your company, as employees, suppliers, service providers and so on, can easily access everything they need to and is conducive to more reliable and secure collaboration and internal communications.
This kind of enterprise mobility has been shown to improve employee productivity, efficiency, satisfaction and reduce costs with most organizations believing it’s imperative to their success.
If your business is yet to explore the advantages of such technology, it could be the digital transformation that your organization needs to take it to the next level.