For those who are new to the cryptocurrency industry, the word “blockchain” is often heavily associated with cryptocurrencies and these alone.
What many may be unaware of, however, is that the uses of blockchain technology extend far beyond cryptocurrency and have practical applications in industries outside of the financial landscape.
To give you an idea as to how revolutionary blockchain technology is to business operations, I have gathered six excellent examples of how it can be used by companies worldwide.
1. Borderless Payment System
One of the most challenging aspects of running a business is managing the finances for the business operations, and this is especially true for companies who operate globally and accept payments from those living in countries outside of their own. Receiving such payments often results in payment fees or other issues like credit card charge-backs.
Blockchain technology associated with cryptocurrency can be utilized so that companies can accept cryptocurrency payments in place of fiat currency, which results in quick, cheaper, permanent payments that are easy to track. This can also make sending out payments to vendors simpler as well.
2. Recording Vital Business Information
A blockchain consists of a distributed ledger that records all transactions taking place within its network. When applied to a business, owners can keep track of all of the vital business information that they need to manage and maintain securely (i.e., certificate of registration of the company, bank account credentials, etc.).
3. Private Blockchain Usage
Blockchain technology is often revered for its decentralized nature, but some blockchains are, in fact, private. These private blockchains allow for specific permissions to be given to certain individuals so that those working within the company are allowed to access data that is relevant to them. This is very useful for companies who want to reap the benefits of the blockchain but who also want to keep their sensitive data secure.
4. Tracking the Supply Chain
As with data, blockchain tech can also be used to keep an eye on a company’s supply chain. Blockchain technology has the potential to cut unnecessary costs and make sure that operations are running efficiently.
It also helps to improve transparency in the processes for better internal evaluation and reporting, making it extremely valuable to ensure that a company operates as smoothly as possible.
5. Utilizing Smart Contracts
Contracts are a necessary part of business operations and ensure that both parties meet the terms agreed upon. There are contracts currently offered on blockchain networks known as “smart contracts” that help to act as digital forms of these and are stored publicly on the blockchain.
These contracts are not subject to the bias of any party. Simply put, smart contracts eliminate the need for the services of trustworthy intermediaries and make sure that terms are fulfilled by all parties.
6. Maintaining Public Identity Systems
Although this is a less common use of blockchain technology, a blockchain can be used to create a public identity system that could help a company keep track of all of their employees. It can also be utilized as a way to keep track of all of their customers, which works well for businesses operating in an industry such as healthcare. This way, all user information is stored along with the individual it is attributed to and how they have interacted with the company.
Blockchain Technology is the Future of Data
Blockchain technology is extremely useful and can be applied to companies in different fields to improve efficiency, security, costs, transparency, etc.
While blockchain technology is still growing and evolving, these six use cases provide valuable insight as to how the blockchain can be used and why it is so useful to all companies as a whole.