Blockchain technology first appeared in 2009 after the launch of Bitcoin. With the growth, progress, and benefit cryptocurrency has amassed over the years, blockchain technology has gone mainstream. Today, many sectors — finance, healthcare, legal, insurance, supply chain are sourcing ways to introduce Blockchain into business operations. It is primarily due to the realization that blockchain technology has the potential to impact businesses positively.
Before now, blockchains have predominantly existed in the crypto industry. Through Blockchain, you can buy Dogecoin and other cryptocurrencies seamlessly from exchange partners. The most valuable thing about this technology is that it secures and fast tracks data sharing using a decentralized system.
The decentralized tracking system makes Blockchain a valuable asset to businesses and business owners. Given that, we explore the benefits of blockchain technology to SMEs and large-scale businesses in this article.
How Does Blockchain Technology Benefit Businesses?
Industries and organizations are beginning to incorporate Blockchain into their companies’ activities due to its multiple advantages. However, we have seen how beneficial Blockchain can be to other sectors, including businesses, over the years.
Every business is always looking for ways to scale up, and to do this, accountability and flexibility are key. Whether as a small, medium, or large business owner, here are the ways Blockchain enables you to scale up your business plan.
- Ease and Speed of Accessing Information
A thriving business needs constant and immediate access to information that relates directly or indirectly to the products or services. Unfortunately, getting the needed information using conventional information storage methods is slow-paced for many businesses. With blockchain technology, accessing information and deriving results are made faster.
Instances of businesses and companies using blockchain include; Walmart, Goldman Sachs, and Alibaba. All of these companies, among others, leverage innovative technologies to access information beneficial to the company and its customers.
- Reliability and Trust
In business dealings where reliability and trust are almost non-existent, Blockchain creates transparency that restores trust like it does with crypto payments. Since the information on a blockchain is accessible by all trusted parties and belongs solely to none, trust is prioritized. The use of Blockchain for cryptocurrency trading and exchange is an example of how it promotes trust amongst participants.
- Security and Privacy
Companies, industries, and organizations prioritize blockchain technology due to its top security and privacy. Whenever this technology is mentioned in any sector, it is synonymous with transparency and security. Blockchain is structured to provide security to every participant.
Only trusted parties have access to it, making detecting fraud or phony activities easy. Also, transactions on the Blockchain are carried out with end-to-end encryption, stored in an unalterable record. A party cannot alter any information provided on blocks that make up the chain without altering every other information that precedes it.
Transactions and exchanges on the Blockchain cannot be erased; the information is securely stored. Instead of erasing information, more blocks can be created to keep more records. As such, it’s essential for business operation since it allows for transparency, record-keeping, and returning to old records for business references.
It opposes conventional methods of keeping records because information entered cannot be lost, erased, or destroyed. It can also serve as a cloud storage system instead of the conventional filing system that can be prone to fire or water damage.
- Limited Access
It’s not like a conventional record-keeping process that allows anyone access to business data and information. Businesses using blockchain technology limit access to a selected few. The board of directors, CEO, and Data Officer have access.
How Online Businesses Can Thrive Using Blockchain
Online businesses keep increasing every day, even though not all make it to the end of the year after their establishment. Having great small business ideas and designing a strategy that works will help you build an online business that stands the test of time. Developing a strategy entails leveraging innovative technologies like Blockchain.
Despite the innovative ways blockchain technology is reshaping the face of business, most people still find it challenging to adapt. For some, the challenge is adapting to a new technological device, and for others, it is because they do not have the required knowledge to work on this technology.
Still, there’s no excuse for businesses to miss out on the benefits of using blockchain technology.
- Blockchain erases autonomy in business which improves transparency and trust.
- It breaks the barriers to financial transactions
- It brings about accountability in business dealings and operation
- It provides businesses, especially large-scale businesses, with top-level security and privacy.
- Businesses can prioritize smart contracts instead of using traditional methods.
- An improved method for customer engagement
Blockchain technology enhances the business model of any company. While its transformation of the business sector is palpable, there’s no saying newer innovations that it’ll come with. It is important for online businesses looking to thrive in this digital age.
As technology advances, data privacy is becoming an issue that businesses must take seriously. Adopting blockchain technology for your business management is a good way to ensure data privacy, transparency, and accountability, which are all key for business growth.