HOW BLOCKCHAIN TECHNOLOGY WILL IMPACT YOUR BUSINESS

Introduction

All the attention encompassing Blockchain today is centred on financial services, with very little discussion about non-financial services firms and how blockchain technology may influence organizations, their business models, and how they create and convey value. Blockchain could have serious implications for the future of all the businesses. From accounting to operations, the growing consensus among industry leaders is that it’s likely to impact quite a major area of work- and the shift has already started.

The key feature of the Blockchain technology is that it allows businesses to track transactions from beginning to end without having to consult a central authority tasked with preserving the transaction or encrypting the data. By categorizing these transactions, it provides transparency of what’s going on in the history of transactions and also makes these transactions more secure.

Some of the organizational effects  of Blockchain include:

Supply Chain Management

When it comes to transparency Blockchain and business go hand-in-hand. Supply Chain Management is the connected network of individuals, organizations, resources, activities, and technologies associated with the manufacture and sale of a product or service.  For instance, in the food industry, it’s extremely important to have solid records that trace each product to its source in case something goes wrong.

Some more issues that you can resolve via blockchain based SCM are:

• Traceability
• Contract Enforcement & Management
• Damage & Mishandling Management
• Oversight On Counterfeiting
• Supply Chain Auditing

Lowering Operating Expenses

Blockchain enables businesses to send and receive payments through a programmatic set of rules called “smart contracts.” Cryptocurrency payments are handled by the peer-to-peer network and require no centralized verification. By using smart contracts, businesses can save on payroll, invoicing, and reduce the need for external services. Smart contracts take expensive brokers, escrow agents, and other financial intermediaries out of the equation. The self-executing computer programs, Smart contracts can carry out the terms of a contract as laid out by their creator. They implement this contract with cryptographic code, making it unbreakable as the terms of the contract are automatically actioned. As all measures related to a specific smart contract are transparent and recorded, this could also lessen the cost of tracking and reconciliation.

Asset Protection

Blockchain could bring some relief to Cyber Security Venture by saving businesses from cybercrime damage costs. Since Blockchain transactions are not controlled by a centralized storage system and can’t be tampered with or changed retrospectively, they are perhaps safer than the current systems in place. Blockchain store data using sophisticated math and software rules that are almost impossible for attackers to manipulate. Each block included onto the chain carries a hard, cryptographic reference to the past block. That reference is a piece of a mathematical problem that is required to be solved in order to bring the following block into the network and the chain. This creates a particular encrypted digital fingerprint called a hash, making it secure and virtually tamper-proof.

Cutting Out the Middleman

If you’re an expert associated with banking, contracts, settlements, or any part of the business that includes service as a third-party to a transaction, your role might be influenced by the increasing adoption of blockchain. With this kind of technology and innovation, cryptology replaces third-party intermediaries as the attendant of trust. By using mathematics instead of middlemen, it can help lessen overhead expenses for companies or individuals when trading assets or can rapidly demonstrate ownership or authorship of information.

Blockchain might be the backbone that enables cryptocurrency transactions to take place, but Bitcoin and Ethereum are only the beginning of what could be possible in the future. Future applications of this technology could include e-commerce marketplaces and applications, peer-to-peer finance and insurance transactions, content distribution, healthcare data exchanges, B2B accounting applications, supply chain, and customer service applications. It’s a brave new world for businesses who are willing to grasp it.

For early adopters and evangelists, the impact of blockchain is constrained just by the imagination and effort of the visionaries who will use it to transform their businesses.