Advancing technologies compel modern enterprises to change by disrupting their business models. Blockchain technology is an excellent example of technological advancements. As an incorruptible and highly secure digital ledger, you can count upon blockchain solutions for financial transactions and every other thing of value. Major advantages of blockchain technology include transparency, privacy, 24/7 availability, and accessibility for anyone.
Blockchain development services support new business models based on a decentralized database across various industry sectors. Be it smart contracts in the real estate sector or supply chain management in the logistics sector, blockchain solutions work wonders while providing the utmost safety and accuracy. Blockchain-based business models remain cost-effective because they do not require any intermediaries. Corporate customers find blockchain technology highly useful for better data traceability and verification.
As per the Statista prediction, worldwide spending on blockchain solutions will cross 6.6bn USD by the year 2021. As the largest use case of blockchain, cross-border payments and settlements impact global enterprises. Here we are going to see the other major effects of blockchain in modern businesses.
Impact of Blockchain on Various Aspects of Businesses
Effective Tracking of Supply Chain
Supply chain management is at the core of major industry sectors including manufacturing, pharmaceutical, chemical, and heavy engineering. While offering transparency to businesses, blockchain solutions enable business owners to track the supply chain more effectively. Blockchain technology enhances openness and entrepreneurs can easily monitor vendors and suppliers anytime. Let’s take an example of thriving food industry. It is of the utmost importance that the company owners have complete records related to the raw material of every food product. These records are specifically useful if something goes wrong. Walmart, one of the largest retail store chains in the USA, has successfully integrated blockchain in its system to keep track of their produce, sources, processes, storage, and expiry dates.
With enhanced transparency in the supply chain, businesses can ensure the authenticity of parts and ethical sources. All the stakeholders including investors can get digital, auditable, and permanent records through blockchain-based solutions.
This is one of the most noteworthy advantages of blockchain. As per the report published by Cyber Security Ventures, cybercrime damage costs are expected to cross $6 trillion annually by the year 2021. Here, blockchain development services lend a helping hand. As all the blockchain-based transactions are free from a centralized storage system, it is impossible to tamper or alter them. They are safer than traditional transaction methods. Blockchain solutions store the data with sophisticated software rules that attackers or hackers cannot manipulate.
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As per this concept, every block is added onto the chain that has a hard cryptographic record of the previous block. If one wants to bring the following block into the network and the chain, it is necessary to solve a mathematical problem or a cryptographic reference. This makes the entire solution tamper-proof and highly secure.
Sectors like real estate, banking, and even insurance have to deal with middlemen or involve third parties to ensure swift and seamless transactions. But, this arrangement affects the overall business models of these sectors. Thanks to the growing adoption of blockchain in the corporate sector, such middlemen-focused settlements or contracts come to an end.
Blockchain services are aiming at replacing third-party intermediaries as the trust keepers. Blockchain technology uses mathematics instead of middlemen. This further reflects in reduced overheads and enhanced trust of customers in your company. Apart from protecting assets, blockchain can define ownership of confidential information. As a result, companies can enhance the trust factor and thrive in their business.
Reduced Operational Expenses
Smart contracts are a gift of blockchain technology. It enables enterprises to send and receive online payments through a set of rules. Smart contracts not only facilitate secure online transactions but also keep brokers, escrow agents, and other middlemen away from the deal. As self-executing programs, smart contracts can easily carry out the terms of the contract, and the owner and customer get peace of mind. These smart contracts have cryptographic code, which is unbreakable. Here the terms of a contract can be actioned automatically.
Finally, smart contracts record all actions and keep them transparent for your customers, employees, and stakeholders. It can reduce the tracking and reconciliation costs. Many global corporations can seamlessly execute some basic HR-related and administrative functions with ease using smart contracts.
These days, blockchain technology has not remained limited to cryptocurrency transactions. Blockchain development services will cover the eCommerce marketplace, peer-to-peer finance transactions, content distribution, healthcare data exchanges, supply chain, and customer services in the coming years. Businesses need to embrace this technology early to leverage its benefits and transform various operations.
Silver Touch Technologies is a leading blockchain development company. We offer the best-in-class blockchain services in the domains of Node hosting, smart contract development, mining pool development, wallet service development, and exchange software development. Do you want to give your business a blockchain advantage? Simply mail us at email@example.com with your business needs, and we will assist you to make the most of blockchain technology.