6 Things Your Business Needs to Know About Blockchain Technology
It is no secret that business leaders are always looking for ways to increase efficiency and lower costs. That probably explains why the global blockchain marketplace is predicted to grow by leaps and bounds by 2023. This relatively new technology can be used in many ways to increase business efficiencies. In the next four years, Insight reports that this market is expected to increase by a whopping 80-percent to about $23.3 billion.
The many benefits touted by people on the cutting edge of blockchain research and usage explain why this technology will potentially be as innovative and world-altering as the internet was when it took the world by storm. The constant focus on improving business operations to save money and time continues to fuel the explosion of this new and exciting technology.
Blockchain Technology Reduces Operational Costs
Businesses live and die by their ability to adapt and manage costs while simultaneously offering high-quality, competitive goods and services. Blockchain technology can be used as a tool to minimize costs. Blockchain’s ledger effectively eliminates the middleman, providing data much more quickly and accurately. For example, Tech Crunch reported that Walmart decreased the time necessary for tracking food arriving from farms to stores from seven days to an impressive 2.2 seconds. This staggering change resulted in cost savings generated through reduced or eliminated labor expenses associated with record-keeping personnel.
Blockchain Technology Provides Greater Transparency
The Economist reports that blockchain technology provides permanent and irrefutable records that can be audited effortlessly. This type of transparency can go a long way in protecting business owners from unscrupulous suppliers by tracking every link along the way including your suppliers’ vendors too.
A good example that shows the significance of this type of oversight can be illustrated in organic food production and sales. There are strict guidelines regulating organic foods. In the event an organic food sales company is challenged about the legitimacy of their claims that the food is organic, blockchain technology is capable of tracking the entire process to eliminate false accusations with accurate data that is easily verified.
Paying International Employees is Less Expensive Using Blockchain Technology
As more companies expand to a global marketplace, it becomes increasingly important to find efficient ways to pay employees overseas without spending an arm and a leg. That’s where blockchain-based cryptocurrency comes in handy as an inexpensive way to transfer funds overseas. Instead of spending a fortune in bank fees and wasting valuable time, it makes much more sense to use a payroll service specializing in Bitcoin payments. Bitwage is transforming the way employers pay international employees.
Smart Contracts Save Time and Are Unbreakable
Traditional contracts can be cumbersome and time-consuming with ongoing changes and the need for everyone involved to sign off on modifications. Blockchain has shortened this lengthy process dramatically since each party involved can check new changes in real-time as soon as they are completed. That’s why these types of contracts are referred to as smart contracts. Inc. reports that blockchain technology saves valuable time wasted on waiting for signatures from people who are also waiting to receive and review the most current revisions.
Improved Data Accuracy is a Major Benefit of Blockchain Technology
Data inaccuracies can cause big problems for businesses. Since accurate information is crucial for making informed decisions, any tool that can provide more guarantees about the accuracy of the information is incredibly valuable. What makes blockchain technology so accurate is the fact that all the data is confirmed and shared instantaneously in the form of data blocks that cannot be erased or modified. While new information can be added as a new data block, the old information is still viable and documented providing an audit trail for interested parties.
This type of transparency reduces the possibility of fraud or honest misunderstandings. Having irrefutable records of every piece of data ever recorded eliminates a lot of bad actors with fraudulent intentions from the equation.
Blockchain Technology Enables Instant Payments
Nothing is more important to business success than cash flow management. Blockchain eliminates the accounts receivable nightmare that entails reconciling records and billing statements. Imagine going to the doctor’s office where blockchain is being used and knowing exactly what the insurance company will pay and what you owe before leaving the office. That’s the power of blockchain technology when a centralized ledger is used in real-time to reconcile payments owed by insurance companies and patients. Faster payments and less confusion mean a better experience for all concerned.
Blockchain technology is here and can be used by companies to save money and time. The challenge will be to fully understand its applications to integrate it into your business.