Its success can be attributed to lower fees, faster money transfers, and the absence of third-party intermediaries. Most of the famous digital currencies worldwide run with blockchain, including Bitcoin, Solana, Stellar, and Ethereum. Besides crypto trading, industries also use this technology to solve any problems. Today, companies providing blockchain development services are in high demand since they possess expertise in this decentralized technology. You will require them to custom create your blockchain, select an already existing one, and solve the problems unique to your business. But how can they benefit your company, and in which industries do they enjoy a substantial presence? Continue reading to find out.
How can blockchain benefit your business?
Proper application of blockchain technology can help your business in several ways, and unsurprisingly, it is popular among several industries, government agencies, and multinationals. One of the reasons, among many, is it allows you to share data quickly and securely among users, without the need for a centralized authority to facilitate or protect it.
Some of the other benefits are explained below.
It resolves the trust deficit
Any kind of transaction, digital or otherwise, is carried out when two individuals place a lot of trust in each other. However, at times, there might be a trust deficit, resulting in deals falling through. With blockchain technology, the trust between the two parties does not depend on their unique understanding or relationship but through comparison and technology. It is also difficult to penetrate the network because the system is encrypted, decentralized, involves many stakeholders, and has community control.
There is less margin for errors
A minor error carries the potential of causing a considerable financial loss for your company, and it is of the utmost importance to minimize their occurrence. Blockchains are one of the best ways of doing that because it is not a labor-intensive process and does not require the involvement of a third party. Automation of the transaction processes reduces the margin for errors along with increased efficiency.
Automatic sharing of data
Another advantage of this technology is the automatic sharing of data which it puts into effect even when no individual is in charge. That is particularly helpful for businesses with a supply chain consisting of suppliers, transportation companies, producers, distributors, and retailers and require constant sharing of information but have no single body in charge. Since blockchain is a decentralized system, it takes care of that problem.
There is a high level of security
It is challenging to find any other data storage and sharing platform or system that takes security as seriously as blockchains. Any transactions carried out at any point in time must have the consensus of all the entities involved in the network. Every transaction is secured through an encryption method and linked to the previous ones through a hashing process (a cryptographic technique that converts data into a unique text string). Additional security is also provided because every node has a copy of the transactions done on the network, discouraging hackers from indulging in fraudulent transactions as the nodes would immediately reject those.
It is extremely cost-effective
You should consider blockchain technology if your goal is to reduce the overall costs in the long run. It enhances the transaction processes, decreasing manual tasks such as collecting data. Auditing and reporting are two areas that become more efficient with their application. Since no centralized party is involved in the entire ecosystem, the money spent on them is avoided altogether.
A permanent record of transactions
Businesses need to have a permanent record of transactions as evidence of a successful or unsuccessful transaction. With the help of blockchain technology, all buying, selling, or other deals are recorded as a timestamp (a small set of data stored in each block with a unique serial number or certificate). It is pretty easy to determine which transaction was made at a particular time instead of the error-prone and lengthy manual process.
Industries in which blockchain is applied
Even though some industries benefit more from the application of this technology than others. You can look at b2b blockchain solutions like BSV blockchain that are especially created as distributed data ledger for enterprise-grade applications and services. In general, blockchains are utilized in different areas:
- Supply chain
- Identity management
- Carbon credits
- Insurance industry
- Voting system
- Financial services
- Real estate
If your industry, business, or organization can benefit from applying this digital and decentralized technology, you must hire companies providing blockchain development services. Greater transparency, traceability, and improved security are just some of the benefits you can expect with their help.