When people hear about Blockchain technology they associate it with Cryptocurrency. The key thing to understand here is that Cryptocurrency merely uses blockchain to transparently record a ledger of payments, but blockchain can be used to immutably record any number of data points. Blockchain in fact also serves many uses ranging from executing contracts, processing payments, sharing highly sensitive data, protecting copyrights, monitoring supply chains to using it for record keeping.
May companies are taking on the distributed ledger technology to conduct digital transactions, drive efficient processes and stimulate innovation in business. Here’s how it works.
This disruptive technology can add tremendous value to business in terms of cost saving and security. – Here is how:
- Eliminates fraudulent transactions – Blockchain technology allows for secure and decentralized transactions.
- Reduces transaction costs – Blockchain technology removes the need to pay third parties, such as banks, mediators, payment networks and money transfer services to manage and record transactions.
- Reduces operation costs – By not having to replace legacy systems and administration infrastructure in organizations.
- Smart contracts – Blockchain Smart Contracts enable companies to exchange digital assets securely and transparently, without the need for an intermediary. All the Smart Contract transactions are securely recorded in the blockchain and cannot be altered afterwards. That transparency goes a long way in establishing trust and certainty – which are essential in business.
- Better security – The most distinguishing feature of blockchain technology is that data is not stored in a centralized location or server. The decentralized nature of blockchain technology means that there is no central authority, making the users totally responsible for the system – making it more secure. Once a transaction is made and recorded, it’s impossible for the data to be manipulated as the technology can validate transactions in an incorruptible manner.
Last few years’ especially pandemic years have accelerated the need for every organization to go through some sort of business transformation. We are seeing every industry is undergoing an incredible digital transformation, businesses that are not adapting will eventually lose their competitive edge. The adoption of any new technology raises some risks, but the benefits outweigh the risks in fostering innovation, eliminating fraud, and improving processes for business in all industries.
We are seeing how our clients both startups and enterprises are benefiting by carefully integrating this technology in their workflow. If you need some guidance in discovering how you can drive digital transformation and process improvements in your organization? We will be happy to assist.