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Since the advent of the internet, no other technology has disrupted the way businesses function like blockchain. Also known as “smart contract” or “ledger technology,” it gained notoriety through cryptocurrencies, particularly Bitcoin.
According to the International Data Corporation (IDC), spending on blockchain is expected to top a whopping $12 billion. And there are tons of companies joining the bandwagon. The World Economic Forum forecasts that a significant portion of the world GDP would be stored on blockchain by 2027.
If there’s one thing any business leader is angling to do, it is to save cost and ensure business processes are streamlined to take in more profits. For instance, according to Techjury, financial companies will save an extra $12 billion a year by using this technology. However implementing it requires expertise, experience, and strategy. You can visit smartblockstrategies.com to learn more about strategy and expertise in blockchain establishment.
Here are four ways this technology can transform your business.
Business Management and Administration
Every so often, companies find themselves well off the pace when it comes to proper management and administration. Business contracts, exchange of goods and services, the integrity of information and data are often hot-button issues for companies.
Inefficiency and inability to adapt operations to changing times can cripple a company. Case in point, Eastman Kodak. The company, after 129 years of existence, struggled to keep pace with technological advances almost leading to its demise.
However, with blockchain technology, Kodak is primed to make a comeback. With its KODAKOne management platform, photographers are able to register and license their content and also ensure they receive returns when their work is used.
Accounting departments are often bogged down by huge tasks including managing finances, analyzing data, preparing financial reports and tax returns while dealing with multiple currencies and tax codes.
Effectively, blockchain is a ledger that takes a record of all transactions. Unlike traditional accounting systems that are error-prone, these systems are foolproof and guarantee accuracy.
Because transparency is a key part of the ledger, all users are able to observe transactions in real time. Additionally, because records cannot be tampered with or edited to suit any interest, the system is robust and safe from any intruder.
Traditional methods of marketing have lost their bite. Digital marketing now reigns. However, even digital marketing should be shored up by blockchain.
It is effective because it kicks out the middlemen and connects consumers directly to advertisers. Consumers can verify and check the trail of the products being sold to them while marketers can zoom in and target specific groups.
What do Yahoo, Equifax, and Target all have in common? Well, aside from the fact that they are/were behemoths in their industry, these companies have all suffered cyberattacks that have compromised sensitive customer data.
And it is not easy for any company to recover from such hacks. Not only are the company’s finances affected – its reputation can be severely damaged.
Blockchain is a hacker’s nightmare. To put it bluntly, it is hacking-proof (at least for the foreseeable future.) Because of its incredibly complex design and encryptions, hackers can hardly access or compromise data on the system.
In a Nutshell
To sum it up, business leaders are gradually reaching a consensus that blockchain may just upend the traditional ways of conducting and managing businesses.
Businesses that adopt it are primed to reap benefits in years to come. While various reasons, particularly the temporary downtime experienced by Bitcoin, account for hesitation on the part of some, Blockchain remains a robust and viable option for effective business operations.