Why Do Businesses Need Blockchain
Blockchain technology is indeed the widely used decentralized ledger that is shared and immutable as it can only be accessed by members with due permission. Thus, a "trustless network" which is the prominent feature of blockchain technology makes it the preferred choice of businesses across various industries. It is widely used as it reduced paperwork and thus the chances of human error. So, let's find out how blockchain acts as a game changer for businesses in all forms of industries.
Benefits Of Blockchain Technology For Businesses
The different characteristic of blockchain technology makes it a suitable choice for businesses across the globe. These characteristics add to the benefits that businesses enjoy by incorporating blockchain in their operations.
Provides enhanced security
The data is a sensitive and crucial part of every business and hence shall be protected from theft and alteration. Thus, blockchain technology helps to create a ledger that is end-to-end encrypted and prevents unauthorized access. As a result, it addresses the privacy issues concerned with personal data while ensuring that the information is stored across a network of computers rather than one server.
Facilitates Great Transparency
Since the blockchain uses distributed ledger therefore the transactions and data both are recorded identically in multiple locations. Thus, all the network participants have permissioned access to the information making the process extremely transparent. Moreover, members can view the history of the transaction and this eliminates the opportunity for fraud.
Makes It Instantly Traceability
Blockchain technology creates the audit trail containing the provenance of the asset at each stage. The technology allows sharing this provenance directly with the customers. As a result, tracing the data allows for exposing the weakness in the organizational processes and streamlining them.
Improves Speed And Efficiency
The traditional organizational processes are heavy and time – consuming which makes them highly prone to human error. Blockchain technology streamlines these processes and makes them faster and more efficient. Since the documents are stored on the blockchain it eliminates the need for exchanging paper.
Some Industries That Benefit From Blockchain Technology
Blockchain technology has wide use cases in several industries which are as follows –
Supply Chain And Food Chain Industry
Blockchain technology helps to build trust between trading partners while providing end–to–end visibility and streamlining the processes. Alongside this, it helps to resolve issues faster and develop better business relationships. As a result, in the food industry, blockchain helps to provide food safety and freshness while reducing waste. In the situation of contamination, the source of the food and the processes it underwent can be traced.
Healthcare And Pharmaceutical Industry
Blockchain technology can be best used to improve security for patient data by recording them over several immutable servers. Since the possibility of a data breach is negligible therefore the uninterrupted treatment of the patient can be ensured. In most cases, the control access to the data remains in the hand of the patient which establishes the network of trust. On the other, since pharmaceutical products require a strong supply chain therefore with the use of blockchain counterfeiting activities can be prevented. Furthermore, it also helps manufacturers to locate products in seconds.
Banking, Insurance, And Financial Industry
Since the banking and financial industry involve huge paperwork so it often becomes troublesome to manage documents. Thus, the blockchain technology that is known to replace old processes and paperwork acts as a savior here. As a result, it removes friction and delays in carrying out day-to-day operations and increases operational efficiencies across the industry. Precisely, blockchain technology can benefit sectors such as global trade, clearing and settlement, trade finance, consumer lending, and other such transactions. Similarly, blockchain technology automates manual and paper–intensive processes such as claim settlement, underwriting, etc related to the insurance industry.
Blockchain For Government Sector
Blockchain technology allows governments to work faster. Moreover, it also helps them keep the citizens and agencies secure and also provides an immutable audit trail for executing contract management, identity management, regulatory compliance, and citizen services.
Evidently, blockchain technology has something for every industry. As a result, it is a highly flexible yet secure technology to incorporate into businesses. However, how businesses see it working for them may vary. As a result, if you feel there is a problem that can be addressed through blockchain technology then you certainly would want to talk to our team at www.esrotlabs.com and get the practical structure for it because we are the team of blockchain development experts serving globally.