Technology is a game-changer for businesses as it leads to growth and innovation. Not surprisingly, organisations of all sizes and scales are keen to invest in the latest technologies. The options are endless, from the Internet of Things to Artificial Intelligence, Augmented Reality, Virtual Reality, and industrial automation. Blockchain is another technology worth considering as it can serve immense benefits to companies across all domains. While the technology was initially known as the driving force behind cryptocurrencies, it has come a long way.
The digital distributed ledger has widespread real-world applications in the business context. Organisations have been testing the way it can help. They have found ones that can improve existing processes and facilitate new business models. Blockchain technology is valuable because it can share data fast and securely among entities. None of the entities have the responsibility for facilitating the transactions or safeguarding the data because of the distributed system. Let us explain why businesses must embrace this technology in 2021 and beyond.
Access to core advantages
Before understanding the specific use cases of blockchain for businesses, it is crucial to know more about its advantages. Essentially, these are the ones that are available to every organisation that embraces this technology. These include decentralization, cryptographic security, and immutability. The technology also enables entities to verify information and exchange value without depending on a third-party authority. The fundamental functions of the technology are record keeping and transacting. But companies can leverage it in diverse ways to match the objectives and commercial requirements of organizations. Beyond these core advantages, a business owner needs to understand specific ones that apply in their case.
Transparency and security
The most significant benefit of Blockchain technology is that it offers transparency and democratizes data access without compromising security. Data lies in an interlinked network on the public ledger. It means that no one has monopolies of information, and it is impossible to change data in the ledger single-handedly. Instead, all changes and transactions on the chain are recorded, and every user can view them as they happen. It means that your business database remains secure at all times, even if some users on the chain are compromised. An organisation couldn’t ask for more in the era of cyberthreats when security is a critical concern.
As organisations struggle to cut operational costs in the new normal, embracing blockchain is a surefire way to achieve the goal. The technology reduces costs by removing intermediaries from existing processes. Further, it limits the administrative effort of keeping records and reconciling transactions. Less effort means you need fewer people for the job, and it translates into significant cost savings. Since there are no data gatekeepers or middlemen, companies can trace products and transactions to their roots. Product tracking can keep businesses a step ahead as they can find bottlenecks in inventory and supply chains quickly and easily. It is easy to eliminate these bottlenecks and prevent excesses and shortages in the long run.
Blockchain technology is versatile and serves any business that runs upon trust and credibility. Companies operating in investment, banking, insurance, and money transfer services can derive immense benefits from its applications. Real estate businesses can also rely on it for smart contracting, while healthcare organizations can leverage it for maintaining patient records. The higher education sector is investing in Blockchain resources in current times for recording and maintaining student credentials. This form of data storage has endless use cases. Even governments can use it for authenticating digital voting and making the process more trustworthy.
Transformed business ecosystems
Blockchain technology can serve as the foundation of new platforms and applications for businesses. These platforms and applications have capabilities to enhance processes and reduce costs. More importantly, they can drive trust within the organisation and with partners and customers in the long run. Likewise, business ecosystems can adopt incentive mechanisms within themselves to encourage sustainable behaviours among team members. It is easier to track and monitor people and processes and identify ones that follow specific improvement goals. The new and improved ecosystem can take an organisation one step ahead towards its growth goals.
Another reason that makes blockchain worth embracing is that it facilitates collaboration within an organisation. Everyone has access to a distributed database, and they can be on the same page. Collaboration extends outside the realms of the company too. Multiple organizations can combine complementary capabilities which enables them to save time and other resources. Collaborating on an industry level has more advantages, such as helping companies split the costs and curb the risks of innovation. At the same time, every business that shares the technology can access its insights and benefits.
Momentum for innovation
Innovation is the need of the hour for businesses as they need to find ways to achieve more with less. But innovation does not depend on top-down leadership alone. It is a holistic effort, where every team member needs access to the same information and data resources. It is the only way they can do their bit to take the company a step closer to digital transformation. Blockchain applications make it possible by ensuring enterprise-wide engagement, which creates momentum for innovation. They open up processes and motivate people to give their best as they feel a part of the inner circle that runs the business. The top management does not have to worry about the security of distributed data. It is possible even as everyone has access to corporate data.
Companies of all sizes and from diverse domains are taking notice of the unending benefits of blockchain. More and more are now embracing this technology for unlocking its wide-reaching possibilities. From banking and finance to insurance, healthcare, manufacturing, to supply chain and beyond, all verticals can derive the benefits it offers. Missing out on these advantages means you may fall behind the competition. The best time to embrace it is now, when trust, transparency, and cost-savings are more important than ever. So you must go ahead with the investment sooner rather than later.