Key business benefits of blockchain. AKA the business side of blockchain a CXO should know.
In the past, we’ve explored a lot about what blockchain can do for business and enterprise companies. But today, let us talk a little bit about the actual business (management) value of blockchain.
Here are some ways in which blockchain can be a benefit to your business operations:
Performing a large business transaction can be time-consuming. Most of the time could be spent verifying and validating the transaction that has happened in the system. This is the case especially with multi-party interactions and this is where blockchain comes into the picture. With elements like consensus systems inside a blockchain, you can now cut down the transaction times from days to just minutes. Since the verification happens by your peers and not by a central authority, it saves you and your business time and effort.
Every business wants to stay profitable for as long as they can. Increasing the efficiency in running a business and cutting down cost is very crucial and chances are that you are probably looking out for that right now.
Blockchain can reduce the cost that you incur in validating a transaction that you are making. Since blockchain’s consensus network validates the transactions automatically, you don’t necessarily have to spend your time and energy doing it with a third-party.
Since intermediaries are reduced with blockchain, the value exchange is directly between your business and your customer. This reduces the duplication of effort across peers in your business.
Counterfeit products. This is the major cause of a business’ reputation going down in an industry. Companies are spending a lot of money fighting counterfeit products in the market and blockchain is now coming to your rescue. With private blockchains that are built on platforms like Hyperledger Fabric, the IDs and permissions of a user are clearly visible in a transaction. This eliminates any duplication or tampering of information from anyone in the chain of custody of your product.
With a shared distributed ledger like blockchain, it is easy for people to identify the chain of custody of a product in the system. This enabled a single source of validity which improves monitoring and auditing transactions in the business.
The blockchain is built on trust and security. With some of the most advanced cryptography techniques that are put to use, blockchain stands against information tampering, fraud and counterfeit materials that get into the system. In a permissioned network and a clearly visible proof of validity for members, goods and assets are traded as exactly as represented.
But ultimately, you know best about your business than anyone else. If you are not sure how blockchain could help you, you can sign up for our Blockchain Business Workshop to figure out a realistic plan.