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 as well.
This revolutionary technology has the potential to change the way businesses are run. This is the reason 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 has negligible chances of 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 launch of the Ethereum Project, a decentralized platform that runs smart contracts. The project enables to run applications exactly as programmed without any chances of downtime, censorship, and fraud or third-party interference. Smart contracts are self-automated computer programs that will help businesses to avoid regulations and reduce the costs for common financial transactions.
3. Supply-Chain Management and Quality Control
Today, most of the products we use are not made under a single roof by a single company. There is a chain of suppliers who sell 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 audit-able records of the product 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, so as 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 to store 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 in eliminating the costly fees associated with transferring money internationally. Moreover, it will save the time of 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 is on the rise and its uses will continue to grow as more and more companies and developers begin working with it.