How to Enhance Business Operations with Blockchain Technology

Blockchain’s history dates back to cryptographic concepts first talked about in the 1980s and 1990s. But it was the introduction of Bitcoin in 2009 that saw the first widespread use of digital ledger technology.

Bitcoin is synonymous with blockchain, but the technology that underpins the cryptocurrency has extensive use cases outside immutable payment systems. Below, we look at 10 ways businesses can use blockchain to enhance and improve their business operations.

Accept And Use Cryptocurrency

Blockchain can be used for other purposes, but its most common use today is in payments and remittances. Crypto can be used to make peer-to-peer payments and an increasing number of businesses are accepting cryptocurrency payments. Some users prefer crypto over fiat payments because it is quicker, cheaper, and anonymous.

Payment gateways make the acceptance of cryptocurrency easier than ever before and can automatically convert digital currencies to local currencies. Your business doesn’t even have to hold cryptocurrency to accept it as a form of payment.

Diversify Investments

It also offers a potential investment opportunity. Bitcoin has seen significant price booms in 2011, 2013, 2017, and again in 2020 and 2021 while a lot of modern investors also look to emerging alt coins as a means of finding significant gains. Hence, blockchain can be used to diversify an investment portfolio.

While Bitcoin is unlikely to see the 1,000% gains it has seen in previous years, some of the best opportunities in crypto presales have significant potential. Historically, some presales have gone on to make 100x profit within a few days of launching on centralized exchanges, and, according to crypto writer Alan Draper, presales also offer discounts on prices as well as other significant bonuses that make them even more attractive to investors.

Reduce Costs

Blockchain’s accessibility means it offers an affordable alternative to traditional transaction processing. Reporting and auditing are easier, transaction clearing and settlement workloads are reduced, and there is no need for middlemen or third-party services, which can lead to significant cost savings for the modern business.

Furthermore, if the business can use cryptocurrency to send and receive overseas payments, the costs of these transactions are also greatly reduced. However, businesses need to conduct analysis of potential blockchain usage because heavy users might not experience the same cost savings due to extensive processor and computer usage.

Enhance Trust

When entries are added to the blockchain, they cannot be deleted or amended. They are also publicly accessible, which means anybody can view the records using a blockchain explorer.

Blockchain records are largely nonsensical unless somebody knows what they are looking for, but its open nature means that blockchain can enhance trust between businesses, their users, and other third parties. A lot of potential customers and clients won’t deal with businesses they don’t trust, so this transparency can help generate new business and convert leads.

Share Data

Transparency builds trust, but it also enables blockchain businesses to readily share data with others. Consider a retailer that shares its on-chain data. Suppliers and buyers can check that data. Suppliers can determine whether the retailer needs more stock and what type of stock they are running short of.

This doesn’t have to be a manual process either: automated systems can be established so that the supplier automatically receives notification when the retailer’s stock supplies are low. Customers can not only view stock levels but can determine how long the company has had stock and verify its source. It can be used in accounting, supply chain logistics, and inventory management and it can offer benefits including reduced costs and faster transaction times.

Improve Security

Blockchain records are immutable. The data is stored on a decentralized network, which means it is kept on disparate computers, whose users have no connection with one another. Records on blockchain are not only secured but they are time-stamped and date-stamped. The decentralized nature of the blockchain network means it is basically impossible for the details of entries to be changed.

Although commonly used for cryptocurrency, the immutability of blockchain means it has also found use in many other industries. Healthcare records can be stored on blockchain, meaning that patients can choose what information to share with others and then provide a private key to healthcare professionals so they can access those records. They are also used for background checks, essentially taking the certificate of good conduct online and making it secure. Blockchain also uses advanced cryptographic keys to secure those records. This all makes blockchain a secure method of storing and transacting data.

Enhance Speed

Using blockchain doesn’t require the use of any third parties or intermediaries. And there is no delay between adding records and those records becoming available on the blockchain.

Blockchain can also process data quickly, although it does depend on the network used, the data being processed, and other factors. However, blockchain technology is generally faster than traditional technologies when taking into account all the processes and stages.

Tokenize Goods

Tokenizing goods means assigning a digital token to a physical product and then recording that product on the blockchain. Blockchain has been used, or at least trialed, for real estate, art, fine wines, and in other instances where immutable records are important. NFTs are a good example of how digital files can be stamped and tracked, preventing fraud and intellectual property theft.

Tokenizing goods works in a similar way to transferring house deeds, but in an immutable, digital format. When somebody sells a piece of artwork, the art and the blockchain records are passed to the buyer. This gives provenance to the artwork and can help to combat art fraud. With rare wines or whiskeys, a similar process can be followed. The blockchain record can include details of the product’s provenance and sales.

Take Control

Individuals, as well as businesses, can take control of their own data, rather than having it controlled by others. In the same way that individuals are able to choose what data they share on a healthcare blockchain, for example, businesses could make certain financial records publicly accessible.

Keys can be changed or revoked, which means it is possible to make year-end results available to shareholders, or even include live accounts updates to important stakeholders for a set amount of time before the keys are revoked. This negates the need to give access to internal systems and it is more secure than sharing critical data by email or over the Internet.

Innovate

We’ve still only scratched the surface of how blockchain technology can be used, but it already has huge potential for companies and individuals.

By getting involved now, your business can explore blockchain technology and help shape the way it is used in business while also cutting costs, reducing time, and potentially even opening yourself up to a new market of tech-savvy cryptocurrency users.

Conclusion

Blockchain is the technology that underpins Bitcoin and other cryptocurrencies, but it is also much more than that. It has already found use in industries ranging from healthcare to real estate and even fine art. Companies and individuals continue to find innovative ways to implement blockchain in their business efforts, and this will only continue to expand as people become more accustomed to the technology.