Technology has affected everything around us, business inclusive. Technology changes every part of the business. Funding, marketing, contracts, and medium of exchange to mention a few. One of the most pronounced technologies that have influenced the business world at large is blockchain.
Blockchain is an incorruptible, distributed ledger that enables trusted and transparent business transactions with a single source of truth among parties who may not fully trust each other, without the overhead of intermediaries. Blockchain provides a trustless system at a lower cost. A blockchain is made up of records known as blockchain linked via cryptography.
Blockchain application development is becoming popular in different sectors, particularly the business sector. Daily, several businesses are adopting the custom blockchain application development developed by blockchain consulting firms. Below are some of the reasons blockchain consulting services have influenced the business world.
Smart Contract
A smart contract is like a digital business lawyer, computer codes that contain a lot of agreements between parties. The smart contract permits trustworthy transactions to take place without the need for a third party or an intermediary. The decentralized system of blockchain helps to save the money and conflict that may arise from the use of a middleman.
The smart contract is similar to a vending machine. Conventionally, you are required to visit a lawyer (of course, you will not go empty-handed) make the necessary payment, and patiently await your document. Smart contracts are like you dropping your medium of exchange into the vending machine and receiving the worth of your goods in your account. A smart contract does not only contain the rules of the agreement but it also automatically ensures the obligations.
The insurance industry has greatly benefitted from smart contracts as it enables them to effectively carry out their business processes safely and securely, thereby eliminating paperwork and its variants already identified as the challenges faced by the insurance industry.
NB: A smart contract is only as bright as the sets of code written for it.
Blockchain-based Supply Chain
The current day supply chain, which is mostly global, involves series of rigorous procedures. Not only that, it involves a whole lot of people, which decreases its transparency. The businesses involved create multiple links required for the distribution of their products and services. These links are mostly webs rather than chains.
This conventional method of supply chain breeds bureaucracy and make businesses spend a considerable sum of money on intermediaries. Blockchain-based supply chain helps to overcome the challenges associated with the conventional supply chain. How? Blockchain technology provides an end-to-end decentralized procedure utilizing digital and the public distributed ledger. The blockchain technology offers a translucent and safe environment where all the partners in the supply chain can effectively monitor the products or services in their chain. We see the application of this technology in the logistics industry, shipping, freights, trucks, and other available means of transport employed in moving goods from place to the other.
Blockchain technology makes possible transparency and easy monitoring via the documentation of records at every point when goods move through locations. The documents are available on the digital and public ledger. Customers can pinpoint where their products are coming from, and the channels their products passed through before getting to them. Aside from the benefits stated above, other advantages of the decentralized supply chain are faster transactions, a trustless chain, it eliminates fraud, error, security, decreased carbon footprint, and is cheaper.
Smooth and Secured Payment
The business world is fast growing into a global village; invariably, many international transactions take place. There are challenges associated with international trade; these are time, excessive charges, and policies affecting international money transfers. It might take hours or even days to transfer currency from one country to another, and it takes a long time between states on different continents. Besides, several legal policies exist that prevent the seamless international transfer of regular currencies. Financial institutions, including banks, charge an excessive amount of money as international transfer charges.
The most widely adopted application of blockchain, digital currencies, otherwise called cryptocurrencies, guarantees safe and smooth payments (money transfer) of money. Cryptocurrency makes international transfers faster and more cost-effective. Also, cryptocurrency eradicates the legal policy impediment associated with conventional currency.
Some financial institutions do not need decentralization; hence, the need for a custom-based Blockchain application.
Application of Blockchain in Marketing
The Internet is continuously changing the advertisement industry. The members of the industry are developing new strategies or methodologies to get to their target audience. However, intermediaries in the form of bots plague the industry. This plague makes businesses pay more money to get in touch with their target audience.
In 2016, the world advertisement market lost $7.2 billion to fraudulent intermediaries and bots. Blockchain will help eradicate the problem of uncertainty associated with ads and delivery. Blockchain will assist businesses to track the delivery time of their ads, period, and execution. Blockchain will also eradicate the fraudulent activities perpetrated by intermediaries and bots.
Conclusion
For every business that wants to keep up with the competition in the business world, there is a need for the integration of blockchain into such business. Conversely, there are many applications of blockchain technology. It is therefore desirable of you to know the precise and accurate application that you require alongside its peculiarities to be a beneficiary of this fantastic technology.
The world, especially blockchain enthusiasts are doing all they can to make blockchain a mainstream technology. The benefits are numerous, and it is interesting to know that it is not industry-specific, and as such it presents a plethora of use-cases in the real world. The fact that a lot of people use their mobile devices while on the move, translates to the fact that it is essential to look into blockchain app developments too, and at the moment there are different blockchain-based startups that are into the development of blockchain applications to facilitate efficiency, and thus increase productivity in our day-to-day activities.
