Some feel that blockchain is overhyped. But, by now, most of them would have realised one thing for certain.
Blockchain is no longer the Utopian dream of some people interested in cryptocurrencies. Recently, Deloitte conducted a study among more than 1300 senior executives globally.
From this study, Deloitte found that more than 53% of them are aware of blockchain. Most of them even expressed that blockchain technology is going to be a key priority among businesses in the coming years.
Experts feel that blockchain is becoming a mature solution poised to deliver on its initial assurance of disruption. In simple terms, blockchain is getting into the mainstream for many businesses.
You can understand how blockchain technology is helping businesses. But before that, it is better to first understand one thing. Yes, it would be good to initially know what blockchain in businesses means:
Blockchain in Business: A Basic Understanding:
The blockchain is a safe technique for storing transactions electronically. Most importantly, in blockchain, this can be done without the involvement of a third party.
Here, third parties include even government agencies and banks. Blockchain for business is particularly notable for its ability to secure cryptocurrency transactions.
Now, let us understand how businesses are leveraging the blockchain in many ways:
1. Blockchain Simplifies Business Audits:
With blockchain, businesses can get a permanent record of transactions. In turn, it becomes easier for businesses to follow paper trails for audits. Here is how blockchain makes audits easy for businesses:
- Whether for internal or government audits, blockchain provides businesses with simple paper trials.
- It is possible to ensure the accuracy of transactions on the blockchain.
- Blockchain solves the issue of gathering records from different sources for audits.
- The more data a business stores on the blockchain, the more history it will have to make auditing easy.
2. Blockchain Facilitates International Payments:
With blockchain, entrepreneurs can create a tamper-proof log of sensitive activities. They can do this more efficiently and securely. This is why many businesses find it safe and easy to make international money transfers using this technology.
An excellent example is the first blockchain-based money transfer service launched by Banco Santander in April 2018. Businesses and individuals can use this platform to make secure international money transfers on the same day or the next day.
3. Smart Contract Creation:
Smart contract creation is another task that businesses use blockchain for. These smart contracts eliminate the need for third-party evaluators and administrators.
For smart contract execution, computer code is run on top of the blockchain. Here, the parties involved set pre-defined rules in advance.
When the system meets these rules, the agreement is regarded as complete and is instantly enforced. You can understand this concept better with an example:
- You are planning to release 40% of the payment to a raw material supplier after the completion of shipping procedures.
- Also, you are thinking that 50% can be released after delivery.
- The remaining 10% after checking the quality of raw materials.
When you feed these rules into blockchain technology, it will track your progress. It will verify and enforce the payment release rules as soon as the requirements are met.
These are only a few examples of how businesses are leveraging blockchain technology. Yes, they are benefiting in many other ways as well. Why not jump on board and reap the benefits of blockchain today?