The notable increase in the rise of blockchain technology and cryptocurrency is offering a lot of opportunities to the business sector. Blockchain technology has brought a lot of benefits such as smart contracts, social media and a decentralized application have provided a whole new business concept. Blockchain technology is now perceived to be more exciting alternative than the traditional currency, transaction method and centralized banking which therefore changes the overall transaction process. Blockchain technology also provides the room for an open distributed ledger that grows as transaction processes occurs across thousands and thousands of interconnected computers.
This technology can profit several businesses across various use cases.
What is blockchain technology?
Blockchain is a public digital, decentralized and distributed ledger that can be used to keep record of transactions across computers, whose retroactive alteration will require that a subsequent block in the chain should also be altered thereby requiring the approval of the consensus of the network. This ensures that participants carry out a thorough verification and audit of transaction data inexpensively. Verified transactions are encoded and hashed into a Merkle tree. This technology can be used to compile data like payments, sales, tracking digital use and also ensuring that it is a public, transparent and permanent ledger system. Blockchain is a technology that links a growing list of records using cryptography. It is widely used by cryptocurrencies and it is readable by the public. Blockchain records are immutable. The blockchain efficiently records transactions that have occurred between parties in a permanent and verifiable way.
Five Ways Blockchain Technology can Benefit Your Business:
- Cloud Storage: one of the advantages that business should take hold of is convenience of storing data in the cloud thereby cutting cost and saving time. It also ensure security of data and it also helps to reduce dependency. With blockchain technology, business can store 300 times the data than they can store on conventional hard-drives
- Paying Employees: Due to the fact that blockchain is connected to cryptocurrencies, companies can take advantage of it in paying their employees. In a situation where a company has some international workers that are on the payroll of the company, the company can take advantage of bitcoin or other cryptocurrencies to pay such a worker, thereby saving cost. Adopting the use of blockchain technology for crypto payroll management system, businesses can avoid fees which are associated with international transfer and also reduce the waiting time for the transfer of payment from bank to another, this will help save cost and time both for the employers and employees. It also allows for remote payment and tracking of payment.
- Smart Contracts: Smart contract is one of the advantages blockchain has brought to the business sector. It helps to improve the efficiency of the team that developed it and also the businesses that uses it. With blockchain technology, companies can carry out business contracts without the fear of interference of a third party either in the approval or disapproval of some important public document. This helps to reduce the cost and time involved in this process. Take for example, a situation where it is required for some legal practitioner to go through some documentation before the approval of such contract, the document may have to go back and forth before a final consensus is reached, and this might have a negative impact on the project. If blockchain is adopted for smart contract, business can save the money that might have been required for legal fee.
- Online and Offline Payment Process: As crypto is part of the development of blockchain technology, businesses can easily and conveniently carry out transactions as this will help to minimize cost and in some instances, eliminate cost completely. Cryptos which utilize the blockchain technology can make businesses flexible in their payment acceptance methods.
- Better Business Process: The basic aim of blockchain technology is to ensure that the open distributed ledger is decentralized, that is it can be exchanged and stored simultaneously within all network nodes, in an unalterable and transparent manner. This technology can be very useful when it is combined with other forms of technology such as ioT, AI, and can improve business processes dramatically.
Businesses that are conscious of keeping up with the trends in technology and having competitive edge over other firms are increasingly adopting the blockchain technology. This technology is still evolving but the tremendous benefits it has offered helps to give a lot of prospect on the revolutionary features that it has to offer in the future.