Top 5 Uses of Blockchain Technology for Business
With the escalating popularity of Bitcoin and cryptocurrencies, Blockchain has become a buzzword in the technology and business sectors. The innovative blockchain technology uses cryptography to create digital records, which are almost impossible to hack, replicate, or misuse. The fact that information in a blockchain doesn’t necessarily need to be financial makes it useful to send, receive, and record other information.
This revolutionary technology has the potential to change the way businesses are run. This is why many top companies, like Microsoft and IBM, are making significant investments in the blockchain. There are some surprising business uses of blockchain tech which can benefit business owners. Here we have listed the 5 potential real-world applications of blockchain for your business.
1. Paperwork and Recordkeeping
The first and most common use of Blockchain technology in business is for paperwork and recordkeeping. The blockchain is an efficient means of managing paperwork and recordkeeping to prevent clerical errors and fraud. It gives a clear picture of records and negligible fraud and data alteration by malicious actors. Businesses can store contracts, proposals, memos, receipts, and any other document digitally on a blockchain to ensure that their data is safe.
2. Smart Contracts
The term smart contract became popular in 2013 with the Ethereum Project launch, a decentralized platform that runs smart contracts. The project enables running applications exactly as programmed without any chances of downtime, censorship, fraud, or third-party interference. Smart contracts are self-automated computer programs that will help businesses avoid regulations and reduce common financial transaction costs.
3. Supply-Chain Management and Quality Control
Today, most of the products we use are not made under a single company’s single roof. A chain of suppliers sells their components to a company that assembles and markets the final product. The drawback of this system is that ultimately the company marketing the final product has to deal with the backlash if any of the components fail. However, this problem can be solved with blockchain by providing stakeholders with permanent and auditable product records at each step. This is evident from the example of Walmart, which has partnered with IBM to use blockchain. The company is using the technology for managing supply chains to and from its stores. It would record every step between producer and stores to trace any product back to its origin in just seconds. This technology is also of great use for quality control. By simply entering the product’s serial number, the business can find the point of failure if the product fails to meet quality standards.
4. Cloud Storage
Businesses can also benefit from cloud storage as, presently, more than $22 billion is spent on cloud storage. Storj Company, which is still in the beta-testing stage, is looking to offer secure cloud storage while decreasing dependency. This will drastically reduce the cost of storing data for companies and personal users.
5. Paying Employees’ Wages
Compensating employees is an obvious use of blockchain because the technology has its roots in cryptocurrency. This is particularly more beneficial for companies that pay salaries to international workers because it will help eliminate the costly fees associated with transferring money internationally. Moreover, it will save time for transferring funds from bank to bank. Also, blockchain will enable both employer and employee to track exactly where the money is throughout the process. These are the five most common uses of blockchain for businesses, but there are also numerous other potential uses of this revolutionary technology. The uses and application of blockchain technology in business are on the rise. Its uses will continue to grow as more and more companies, and developers begin working with it.