When you heard the word “blockchain,” chances are that you will think of Bitcoin. Well, BTC is the most widely used application off from the blockchain technology, but there are many business use cases where enterprises can leverage the distributed ledger. An increasing number of businesses put the “BTC accepted here” sign. But that is one thing because, on the other hand, it will be companies that find applications for blockchain beyond what Bitcoin offers.
It is the promise of benefits from the full potential of cutting-edge technology. Because there is still a lot of noise for blockchain, the hype encourages false and fraudulent applications. But what is certain is that if we are able to cut through the blare, decentralized networks and smart contracts will disrupt the process for operating in a variety of business areas. That is when the right problem is addressed with the right technology.
Blockchain is a new alternative to fiat currency, centralized banking, and transaction methods. Not only is it changing the way we financially transact with people, but it also brings a host of alternatives that will change the world. As a distributed ledger that maintains a continuously-growing list of transactions across networks over tens of thousands of computers, it is impossible to hack - which changes banking. In an inspiring way, blockchain technology will also change the way people run their businesses.
Cloud storage is an application that businesses are already taking advantage of. An example of such service is Storj, which offers a secure cloud storage system while significantly decreasing the dependency factor. According to the founder, Shawn Wilkinson, Storj can store the traditional cloud up to 300 times over by simply using excess hard drive space.
This is similar to how someone can rent out his or her piece of real estate on Airbnb. The world spends about $22 billion on cloud storage alone, a record that promises an open venue stream for the average user. When businesses use cloud storage services, it goes a long way to substantially reduce the cost of storing data for both companies and individual users.
“Smart contracted” was first coined as a term in 1993. However, it has become a buzz-worthy term in recent times. All thanks to the release of the Ethereum Project back in 2013. To put things into perspective, the Project is a decentralized platform that runs smart contracts - applications that run exactly as programmed without the possibility of downtime. The apps also eliminate fraud risks and the interference of a third party.
As far as we know, smart contracts are also self-automated computer programs which carry out the terms of any contract. Essentially, they are financial security whose escrow is held by a network routed to recipients based on future events and a set of computer code. With smart contracts, businesses will be able to bypass regulations and significantly lower the costs for a subset of everyday financial transactions.
For the fact that the blockchain technology has its roots in crypto, it makes sense that the network can be used as an application to put employees on a payroll. If your company pays wages on a regular basis to international workers, incorporating Bitcoin into the remuneration process could be a major cost saver. For example, there’s Bitwage, which claims to be the first Bitcoin-based payroll service in the world. The company is circumventing the costly fees associated with sending money across international borders.
It is also reducing the time it takes for funds to move from bank to bank. The payments made via BTC can save both money and time for both the employer and the employee. According to Bitwage founder and COO Jonathan Chester, by using a public ledger, if all transactions chronologically, one can really see precisely where the money is throughout the process. There is also the payment of remote employees and contractors. Employee compensation is a very large part of businesses, something even the big corporations are betting on.
Supply Chain Management
It is no longer a secret that supply chains are a mess and a complicated one at that. When each link in a supply chain is in a different nation with a different software system, there becomes a problem with the legal systems and internal procedures. Most of all, the inefficiency and lack of transparency of such systems are as guaranteed as waking up with a bad breath. However, there is a solution, where enterprise blockchains come in and businesses and leverage them to make their activities more automated and reliable.
Permanent, immutable records are an integral feature of blockchains. Because of this, they are a good fit for solving problems related to opacity, inaccuracy, or fraud, especially in the logistics sector. The solutions brought to the table by this new tech are so promising that two bigwigs - IBM and A.P Moller-Maersk formed a joint venture to create a blockchain network tailored to fit into the shipping industry. If that is possible, then almost anything is, and that is good news for businesses.
Resource Tracking And Energy Trading
Companies operating in the energy sector can use blockchain-based systems to record and track how much energy is generated and how their commodities are manufactured. This totally eliminates the need for spreadsheets and stretches of man-hours on administrative tasks. Blockchain can also reduce the costs associated with compliance since the data would be more transparent and more comfortable to sort through. That is a massive lift of stress and enables such businesses to perform tasks more accurately.
In the same way, the world’s energy sector stands to benefit exponentially from the blockchain technology. By way of the decentralized distributed ledgers that make up the networks, businesses will be able to track and execute electricity trade. Blockchain is not only going to allow businesses, but also individuals to buy and sell energy on a decentralized P2P marketplace.
Back in 1994, a few individuals with foresight would have been able to identify business applications for the internet. However, as of then, most people were still trying to figure it out. A few decades after, the internet has become deeply integral to how new-age business work so much that the contemporary economy simply cannot function without it.
TAKE ADVANTAGE OF BLOCKCHAIN TECHNOLOGY
As blockchain technology continues to witness more accessibility and usability, the demand for blockchain products will continue to increase. With our expertise in blockchain development, we can help you improve your business efficiency by making your blockchain integration smooth.
Need any of our blockchain development services? Simply contact us and let’s help you get moving.