A lot of large corporations, nonprofit organisations, and government agencies now use blockchain to improve their processes and develop new business models.
The value of blockchain relies on its ability to share data securely and speedily among entities.
An added advantage is the option of decentralisation, meaning no single entity takes responsibility to safeguard the data or facilitate transactions, instead that responsibility is distributed across a network of users.
This and numerous other characteristics of blockchain makes it valuable to businesses, whether you're using a public blockchain network or a private blockchain-based application.
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With that said, here are 6 benefits of blockchain technology to businesses:
1. Enhanced Security
Blockchain-based applications use encryption algorithms or cryptography to secure data.
There is no single point of weakness for hackers to breach.
This dramatically reduces the risk of security breaches from malicious hacking attempts.
2. Improved Data Integrity
Blockchain networks store data in a secure and distributed ledger, which reduces the risk of manual errors and tampering with records.
3. Auto-Execution of Contracts
Most blockchain-based applications are able to be programmed to automate transactions between parties.
Until both parties fulfil their end of the bargain, the transaction will not be completed.
4. Cost Efficiency
With blockchain, there is no need to rely on third-party intermediaries that establish trust between two entities.
Businesses can simply transact using cryptocurrency or assets directly traded using smart contracts or blockchain technology.
Consider this, recently $2.2 Billion was transferred for the low price of just $7… there is a lot of value in cutting out the middleman sometimes.
5. New Business Models
Blockchain-based solutions can create new business models for your company.
For example, the Peer-to-Peer Energy Trading Platform developed by Innogy Innovation Hub proves that blockchain technology can help create a decentralised energy market.
6. Transparent Business Operations
Most blockchain-based applications are transparent, meaning it's easy for everyone to see the addresses of those involved in a particular transaction.
This provides a level of transparency that is not available with most traditional applications.
In addition to making each step of a transaction visible to all, blockchain makes it possible for parties to track an asset on a distributed ledger.
This is especially helpful for businesses that need to track the origin and processing of materials and products.
Conclusion
Blockchain is fast becoming an important technology for businesses across the world. While still in its infancy, blockchain technology is expected to significantly change the way companies operate in the years to come.
This technology is ideal for businesses that require reliable record-keeping over a long period. It can hold all records safely and immutable, thereby eliminating the need to use costly digital storage solutions.
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