If you are an entrepreneur or a business owner, there are chances you may have heard of Bitcoin and the technology behind it, irrespective of whether you own Bitcoins or not. When it was introduced back in 2009, many of us took it with a grain of salt. Today, the scenario has completely and this decentralized digital currency that uses the peer-to-peer Blockchain technology has not only brought a paradigm shift in the BFSI but also in many other industry verticals including Healthcare, Supply Chain, Retail and Consumer Goods, Manufacturing, Government, Information & Communication, Pharmaceuticals, and many more.
In fact, Gartner has predicted that the business value driven by Blockchain technology will surge at a great pace in the coming years. By 2025, it will reach up to $176 billion and $3.1 trillion by 2030. This clearly indicates that this emerging technology has a lot in store for businesses across industry verticals.
Data is a valuable asset for every enterprise and with Blockchain, you can create immutable transaction records linked to the previous transaction with end-to-end encryption. This makes it more secure than traditional record-keeping systems. As the name suggests, Blockchain is a chain of blocks wherein each block contains information about the previous block, which makes it challenging for hackers to breach the security and steal your confidential data. Furthermore, in a Blockchain network, the data is stored across a network of computers and this reduces the possibility of electronic frauds or any other unauthorized activity enabling users to transact safely over the internet.
One of the fascinating characteristics of Blockchain technology is the complete transparency it offers. The transactions once recorded in the Blockchain network can't be changed, altered, or deleted since there are no pseudonymous or anonymous users and all the participants of the networks have a permissioned access view. In other words, all the transactions in this network are usually date-stamped & time-stamped and it allows users to track information anytime, thereby offering greater transparency. This may be one of the reasons why many healthcare and financial institutions are relying on the permissioned Blockchain network.
Businesses that are still banking on the traditional paper-based process are not only prone to human errors but also end up investing a lot of their productive time. However, this is not the case with this emerging technology. Owing to its decentralized nature, it eliminates the need for intermediaries or third-party supervision in many business operations such as real estate and payments.
By streamlining the manual processes through Blockchain technology, the transactions in the network can be carried out at a much faster rate than conventional methods. Many experts believe that the reason behind Blockchain managing transaction processes much faster than traditional financial services is that it allows peer-to-peer cross-border exchange with a digital currency. Furthermore, it is believed that there will be less clutter than usual since the ledger and documentation are distributed with every participant in a Blockchain network. When every participant in the network has permission to access the information, there would be more trust among each other and they wouldn't require any third-party middlemen or intermediaries.
Since each transaction in the Blockchain network is recorded, it becomes easier for retailers to trace the exchange of goods, which in turn, helps in inventory management. An audit trail is present that helps retailers find out where the goods came from, this not only prevents fraud, improves security, but also verifies the credibility of the traded assets. In other words, Blockchain technology can be used in exchange-related business to keep a check on the supply chain from manufacturer to distributor. Walmart is the best example that is using Blockchain technology to keep a tab on the products they sell. This helps them manage their inventory efficiently and quickly respond to customer questions or challenges they are facing.
Many businesses across the world are looking for innovative ways to cut down the high costs. If you are one of them, you should opt for Blockchain development services. With Blockchain, you can not only increase the speed and efficiency of transactions but also automate the manual and repetitive process, which helps businesses in reducing costs. Moreover, it streamlines the process and eliminates the need for intermediaries or mediators to review the documentation manually, making it cost-effective.
Blockchain has an unmatched potential that can transform the way businesses operate. Today, this emerging technology has practical use cases across industry verticals. In this informative piece, we've discussed some of the key reasons why businesses should capitalize on Blockchain technology. If you also want to unleash the potential of this technology in your business, it is strongly recommended to partner with a professional Blockchain development agency.
Alice Gray is a seasoned web developer having over 8+ years of experience in developing tailor-made web applications. In her free time, she loves to educate aspiring developers by developing insightful content on trending tech topics.