How can blockchain technology add innovative, value-driven benefits to the business?
Updated: Nov 24, 2022
When people hear about Blockchain technology, they associate it with Cryptocurrency. The key thing to understand here is that Cryptocurrency merely uses blockchain to transparently record a ledger of payments. Still, blockchain can be used to record any data points immutably. Blockchain, in fact, also serves many uses ranging from executing contracts, processing payments, sharing highly sensitive data, protecting copyrights, and monitoring supply chains to using it for record keeping.
Many companies are taking on distributed ledger technology to conduct digital transactions, drive efficient processes and stimulate innovation in business. Here’s how it works.
This disruptive technology can add tremendous value to businesses in terms of cost savings and security. – Here is how:
Eliminates fraudulent transactions – Blockchain technology allows for secure and decentralized transactions.
Reduces transaction costs – Blockchain technology removes the need to pay third parties, such as banks, mediators, payment networks, and money transfer services, to manage and record transactions.
Reduces operation costs – By not replacing legacy systems and administration infrastructure in organizations.
Smart contracts – Blockchain Smart Contracts enable companies to exchange digital assets securely and transparently without the need for an intermediary. All the Smart Contract transactions are securely recorded in the blockchain and cannot be altered afterward. That transparency goes a long way in establishing trust and certainty – which are essential in business.
Better security – The most distinguishing feature of blockchain technology is that data is not stored in a centralized location or server. The decentralized nature of blockchain technology means that there is no central authority, making the users responsible for the system more secure. Once a transaction is completed and recorded, the data can’t be manipulated as the technology can validate transactions in an incorruptible manner.
The recent pandemic has accelerated the need for every organization to undergo business transformation. We see every industry is undergoing an incredible digital transformation, and businesses that are not adapting will eventually lose their competitive edge. Adopting any new technology raises some risks, but the benefits outweigh the risks in fostering innovation, eliminating fraud, and improving business processes in all industries.
We see how our clients, startups, and enterprises benefit by carefully integrating this technology into their workflow.
The ideas mentioned above are meant as information to ease your organizational processes. However, if you would like a more detailed overview, do not hesitate to reach out to me at rizwan.khan@mac.com.
I have years of experience building Technology and providing Technology Due Diligence as a CTO, and I am available for fruitful discussions.