There are so many ways that the blockchain is transforming business aside from the use of cryptocurrency. Of course, most of the attention goes to the value of bitcoin and other currencies, but that is far from the only benefit that the blockchain offers businesses and individuals.
The blockchain has disrupted many traditional industries and improved them quite a bit. No matter what industry your company is in there is a way that blockchain can help it, however. It doesn’t even matter how big or small the business in question is. Even a freelancer can use the blockchain to their advantage and find it improving many aspects of their work.
In this article, we will go over some of the biggest benefits that blockchain offers to businesses.
1 – Investment opportunity
Since most people are familiar with cryptocurrency and focus on the value rising and falling it is the most logical place to start a list of the benefits. Companies that are always in growth mode are constantly looking for areas in which they can invest. Although there is a risk to investing in cryptocurrency, the right strategy could be something that propels a company to new heights.
There are many different coins to choose from so doing some research that goes beyond just how to buy dogecoin stock is the first step. Although the value of many altcoins follows that of bitcoin, there are some that have a life of their own and present opportunities even when the value of the bigger coins drops.
The key is to not invest too heavily in one currency so that there is a bit of a hedge that helps to protect your investment. Spread your risk out by researching the different cryptocurrencies out there and finding ones that are not tied into the value of bitcoin and Ethereum.
2 – Smart contracts
A huge time and money saver is the use of smart contracts by businesses. It presents a way to keep sensitive documents secure and offers a way to have them digitally signed without much fuss. The reason is that the blockchain is a database that is stored on millions of computers instead of a server.
A server is vulnerable since it can be hacked if there is a weak point of entry. A blockchain can’t be hacked since a hacker would have to get into millions of computers to do so. Any file that is on the blockchain can’t be changed in any way since all changes have to be approved by the miners on the chain. This is the consensus that creates currencies. If one computer is hacked and the file changes, it will immediately be seen by the others and not approved.
This means that documents can be accessed by a remote team very safely and can be signed digitally. These smart contracts even hold up well in court cases in breach of contract suits since the timestamp and immutability make it apparent when there is an issue.
It works great at storing receipts, invoices, contracts, and any number of files that are important for your business.
3 – Storage
Many businesses are going paperless since cloud storage is so cheap and makes it cheaper to do business. However, as we have already pointed out, a server is vulnerable to being hacked and sensitive files can easily be stolen. This is why the blockchain is taking over for storage solutions.
The biggest benefit of storing files in the blockchain is security. There is almost no chance that an outsider could access the files and manipulate them in any way.
The other huge benefit is the cost. Blockchain processes are very efficient and don’t require a huge server that is a resource hog. Since it is hosted on a lot of computers, the processing power is spread out and so are the costs as a result. The fees with many operations on the blockchain are minimal so huge savings can be seen by companies that switch their data storage to the blockchain.
4 – Proof-of-provenance
Using the blockchain for the Internet of Things is one of its strongest suits. The IoT is very complicated and complex and requires a secure backbone to function well. This is why it is being moved to the blockchain.
For instance, proof-of-provenance is very important with anything being shipped. When a product leaves the port, there is a chain of custody that happens all along the way until it gets to its destination. All along the way there are papers being filed and there are usually a lot of different systems involved.
With the blockchain, all of this information gets put in one place that is as secure as it gets. Using smart contracts means that the process can be tracked the entire way and without any risk of there being doubt as to the authenticity of a product. If there was any manipulation along the way then it would be immediately apparent.
Having this documentation is essential when the provenance needs to be proven.
5 – Inventory control
Once again, the IoT plays a big part in a business when it comes to inventory control. There is a system in which there is real-time control thanks to devices being able to communicate with each other. For instance, when a package is leaving the warehouse to be shipped, it passes a scanner which removes it automatically from the inventory.
When this is on the blockchain it is going to be a much smoother process since it allows the devices a central place for communication and many different departments can access the information without any risk of it being manipulated.
Conclusion In a nutshell, the blockchain offers greater efficiency, greater security, and substantial savings. If your company isn’t using the blockchain then it’s safe to say that there is money being left on the table. If you are looking for ways to improve your processes, then look no further than switching from the cloud to the blockchain.