Blockchain technology is often spoken about in the same breath as Bitcoin and other cryptocurrencies but its potential uses extend far beyond digital finance. In fact, blockchain has the power to revolutionize the way businesses operate by providing a secure and transparent platform for tracking transactions. Here we explore several ways in which companies can benefit from the transformative power of blockchain technology.
Blockchain is resistant to modification of data
By design, blockchain is resistant to modification of data. It offers a secure, transparent, and tamper-proof way of recording transactions. The technology is already being used by businesses across sectors, from banking to finance to healthcare and supply chain management. Blockchain technology offers numerous advantages over traditional databases, including improved security, increased efficiency, and reduced costs. As the use of blockchain technology continues to grow, it is likely to have a transformative impact on how businesses operate.
As anyone who has ever tried to coordinate a group project knows, even the simplest tasks can quickly become complicated when multiple people are involved. Trying to keep track of who is supposed to do what and, and making sure that everyone is on the same page, can be a full-time job in itself. This is where smart contracts come in. A smart contract is a way to store and execute agreed-upon terms between parties, without the need for a middleman.
Smart contracts remove the human element
Saswata Basu, the founder of Züs, explains in the article, What could smart contracts do for business, from Raconteur, “Smart contracts let you programmatically make a transaction based on an event. This removes the human element of communication, interactions, and errors associated with such.” In other words, smart contracts can automate repetitive or time-consuming tasks that would otherwise require constant supervision. This not only saves time and energy but also helps to reduce the risk of human error. As smart contracts become more widespread, they have the potential to revolutionize the way we do business.
The supply chain is a critical part of any business, and it is important to keep it running smoothly. Unfortunately, supply chains can be plagued by inefficiencies, which can lead to delays and higher costs. Blockchain technology has the potential to streamline supply chains and reduce transaction time.
Blockchain can streamline supply chains
Mr. Basu says, “Supply chains have working capital and SLA [service level agreement] inefficiencies that can be streamlined. If goods shipped and received today are recorded on the blockchain, then SLA enforcement and payment can be done faster and cheaper.” This is just one example of how blockchain technology can be used to improve supply chain efficiency. By using blockchain and smart contracts, businesses can reduce transaction costs, speed up payments, and improve the overall efficiency of their supply chains.
ROI on Blockchain technology
Despite all the hype surrounding blockchain technology, it is still very much in its infancy. Many businesses are unsure of their return on investment when it comes to blockchain. As a result, many are hesitant to invest in the necessary infrastructure. However, there are a number of ways that blockchain can be used to drive ROI. Businesses that are able to leverage the technology stand to reap the rewards.
Mr. Basu cites IBM, Microsoft, Oracle, AWS, and CitiGroup as excellent examples of businesses that have started to implement blockchain solutions. He added, “The most notable implementation is Walmart with its supply chain logistics.” By using blockchain, these businesses have been able to streamline their operations and save costs.
For example, Walmart has been able to reduce the time it takes to trace the origin of a food product from seven days to two seconds. Blockchain is an ideal solution for tracking the movement of goods across supply chains. With blockchain, businesses can be certain that they are getting the products they ordered and that they are being delivered on time.
The transformative power of blockchain
As blockchain technology becomes more widely adopted, we can expect to see even more businesses benefit from its transformative power. The benefits are clear, and more businesses are starting to adopt it every day. If you are looking for a way to improve the efficiency of your business operations, blockchain may be the solution. At Züs we are committed to helping businesses harness their limitless potential. To learn more about Züs, visit our website today.