It seems that Blockchain tech is on everyone’s lips at the moment, with many experts saying it could become as important as the development of the internet itself. For the uninitiated, blockchains are shared digital ledgers that record and enable secure peer-to-peer transactions without involving third-party intermediaries.
The technology, invented in 2008 to facilitate the use of Bitcoin and other cryptocurrencies, offers an enormous range of applications and business benefits far beyond the digital currency markets. When owners of small and medium businesses hear the word blockchain, they often think it means cryptocurrency, or simply don’t think it is something they could use. However, businesses of all sizes across the world are now racing to adopt the tech and reap the rewards. Here are 3 reasons why you should consider using blockchain in your business.
You may think your current systems and arrangements are secure, but the truth is no matter how strong they appear, there is always the chance data may leak on the internet and the possibility a bright hacker can compromise your system and snatch sensitive data. The extensive cryptography of blockchain tech ensures that any data is inherently encrypted, so it is far more secure than the traditional username-password security system. The system is also completely decentralised as opposed to being operated from a single server, which means it is exceptionally difficult to hack into. Imagine ripping pages from a large book and putting all of them in different locations in your town, and then someone else trying to put the book back together in order! Not only is your data safer but the risk of fraudulent transactions is also minimised with blockchain, as all transactions take place in real-time so anything suspicious can be detected swiftly. Everything is also recorded in chronological order with a time stamp so problems can be identified retrospectively with ease too.
Paperwork and Data Storage
These days, no matter what size the operation, businesses generate piles of data and handle large numbers of transactions. Many small and medium enterprises still use paper-heavy processes which can become easily disorganised and take lot of time to manage, stopping owners from growing their business. Human error also becomes a factor, with mistakes potentially costing thousands of pounds always a possibility. Blockchain tech can streamline and automate these processes, recording and validating all transactions and speeding up query resolution enormously. Red tape is sliced through, you are faster, more competitive and your customers will get a much smoother experience – all of which could give you an edge over your competitor set. And not only does using blockchain improve your data security but you can use the system to store data far more cheaply than the traditional cloud storage options offered by the likes of Google, Dropbox and Apple iCloud. By breaking up files into manifold pieces, encrypting them, and transmitting them to hard drives all over the world, individuals and businesses can rent out their unused space which allows data to be held securely, anonymously and very cheaply.
Every business needs to contend with contracts at some stage – and they are usually a time-consuming and costly process. There is usually a heap of paperwork, and the complicated legalese often required means you need to consult a lawyer, which is rarely cheap. Blockchain tech allows binding legal agreements to be fully automated – these “smart contracts” have the potential to revolutionise business processes for the better. Contracts between buyer and seller are written on blockchain in the form of codes, which means two or more parties can now make agreements without any paper documentation that requires multiple signatures and the involvement of lawyers or other third parties. The countless delays and errors caused by the chain of humans is swept away. Everything is transparent and secure, and any new information or updates to agreements can only be made with the consent of everyone involved. As mentioned above, all data is recorded chronologically and once recorded, it cannot be amended or deleted. Smart contracts are also self-executing, which is great for your cash flow. Rather than having to go through processes of reconciling invoices, checking billing statements and getting everything authorised to get your money, smart contracts make automatic and immediate payments as soon as an element of the contract is fulfilled or a transaction is completed.
These are just some of the potential benefits blockchain could bring to your operation. The technology has grown far beyond powering Bitcoin and other cryptocurrency trading platforms like the bitcoin Evolution login. While it already has huge applications for businesses across the world, the system is evolving continually and it seems inevitable that further wonderful tools will emerge to further change business processes forever. If you aren’t already using it, you should look at how you can, your competitors probably are.
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