Five ways blockchain can improve your business

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Date: 27 November 2020

Young businessman sits outdoor on steps, using laptop and looks on his screen

All over the world, businesses and organisations of all sizes and types are racing to implement blockchain. If you haven't come across it before, blockchain technology was originally invented to act as a virtual ledger for Bitcoin transactions. But it has numerous applications in industry when it comes to recordkeeping and transactions. Many organisations have already utilised it and have achieved significant benefits. Blockchain seems set to continue to take the world by storm. Here’s why you should consider using blockchain to transform your business.

Transparency

This is currently one of the biggest issues facing businesses. There have been enormous efforts made to adopt new regulations (GDPR in particular) designed to strengthen the rights of the individual, assure accountability and ensure data is held and processed in a transparent manner.

Businesses and organisations usually have centralised systems. In practice, stakeholders, customers (and employees) tend to hold and maintain their own record of transactions, processes, and agreements. It can mean that record keeping is very inconsistent making it time-consuming struggle to monitor transactions, validate agreements and ensure maximum accuracy. It certainly is a recipe for poor transparency and eats up resources, time and, of course, money.

With blockchain, all transactions and processes are completely transparent (it is a distributed ledger which grants all network participants shared access to the same documentation). This means no more individual copies of everything! This shared document can only be updated by mutual agreement of all parties involved and everything is recorded in chronological order and time stamped. In addition to transparency, blockchain assures consistency and accuracy and makes businesses run far more smoothly.

Efficiency and speed

When you use paper-based processes with multiple records, it is very time-consuming. It also means that human error becomes an issue. Often, companies use a third party to supervise and check everything. Blockchain cuts through these cumbersome processes by providing a single digital ledger to store all transactions that is shared amongst all participants. This offers many benefits. Everything is automated so human errors are eradicated, there's no need for reconciliation as everyone works from the same information and documentation clutter is also eliminated. A shared ledger also makes it far easier for everyone involved to trust each other, removing the need for third-party intermediaries to check and validate everything. Blockchain can streamline everything in your business and make processes much quicker and more efficient.

Stable auditing

Blockchain technology is a brilliant way of storing data and is especially useful for any organisation that need a clear audit trail to keep financial records or other information. As mentioned, all transactions and processes are recorded chronologically so an audit path is automatically created and maintained. The data structure is also append-only, meaning that once data is recorded, it is not possible to alter or delete anything.

Another benefit is that all the transactions stored on blockchain are held in all the computers in the chain so data cannot be lost. There is no longer a requirement to maintain multiple ledgers. All the processes of verifying and authenticating information are made far simpler and more stable. This makes fraudulent activity far more difficult.

Better security

Blockchain can significantly improve the security of your record-keeping systems. The technology means it is a simple matter of limiting data access to the required parties. All transactions are agreed upon before they are recorded. Once that happens, they are automatically encrypted and linked to the previous transaction. Every node in the chain holds a copy of all transactions which serves to further strengthen security.

Data is fully secure and safe and, as all information is shared on a network of computers, it makes it very difficult for hackers to access and compromise your information. As data is kept in multiple locations, even if hackers compromise one computer, they cannot amend or delete prior transactions and cannot add anything new without the consent of the other locations. This means everything is protected. Companies and customers can feel safe when blockchain technology is being used.

Reduced costs

For all businesses, regardless of size, reducing costs is always desirable and is often a paramount concern. Blockchain technology can significantly lower the cost of doing many things. Firstly, maintaining and updating your IT structures can be costly. One of the most attractive parts about using a blockchain development company to create the software you need is that they tend not to charge whopping fees as there is plenty of competition out there!

Blockchain also enables you to do everything much faster, lowering both personnel and administrative costs. As all the data on the blockchain is shared, timed, and verified all parties can trust the information on it. This means you eliminate the need to use third parties to check and verify data and manage transactions. You will have far less need for intermediaries like banks, brokers, and lawyers, saving more money. The transactions themselves are far simpler and can be cheaper too – many online payments go through third parties such as PayPal, who charge a fee for processing a transaction. Using blockchain helps you avoid these costs.

Closing thoughts

It is amazing to think that a piece of tech designed to make cryptocurrency feasible will have such a revolutionary effect on the processes of organisations, big and small. Without doubt, blockchain will change the way we do business forever. You should take a close blockchain and consider how it could help your business reach new heights! And if you are considering using cryptocurrencies visit Fxforex for a comprehensive beginner's guide to find out everything there is to know.

Copyright 2020. Featured post made possible by Muve Media & Marketing Ltd

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