As the year 2018 begins, there are big announcements streaming in from different parts of the world. Companies like Kodak that the world had forgotten about are reemerging with cryptocurrency of their own to enter the financial markets becoming part of the prevalent business trends.
However, cryptocurrency or finances are not the only uses of the blockchain, the options available with blockchain for companies are much more than just these. There are some advantages that blockchain offer other than the industries it’s going to disrupt, some of them are listed below.
Reduction in cost
There are many industries like banks and insurance companies that are exploring the options that blockchain is offering them. These days the adoption of new technologies has become so important that those that do not implement or incorporate them into their businesses feel left out. Therefore, it’s of vital importance that banks and other financial institutes use concepts that are still novel and profitable to survive in the market among all the hawks.
The main services that are provided by banks are those of a middleman and a guarantor, for which they charge around $ 2 trillion a year. If companies move to the blockchain, there is definitely going to be an addition to the amount that’s being saved from going to banks just for their services.
It’s the transparency ensured by the blockchain technology that is a transforming force in the financial sector. It’s a technique that can fill the deficit of trust between business parties and provide an immutable structure for the security of financial data. the reason blockchain is seen as a revolutionary force is because of its capacity to store the records of transactions in an unprecedented manner. The same services of blockchain are valid for many business industries.
There is a great hope that technologists see in blockchain and assume that if this technology can replace regulatory bodies, central authorities, unsecure record systems and inventories with its immutable, secure, streamlined and distributed ledger system, then the need for a middleman in many facets of businesses can be eliminated. They believe that the need for several channels to check compliance and administration of records can also be minimized with this emerging technology.
This guarantee of security through this system also implies it is more reliable than any other technology for record keeping.
There are many industries in the world that demand proper procurement and provenance. In industries like supply chain and retail, this works as the most important aspect. From the insurance of safety, security and quality standards at every step to where the order began is going to end are all considered vital in the two industries. These steps help an enormous deal in the legal matters and also the quality assurance of any business.
The logic of blockchain differs from the conventional technologies in many ways. The reason its seen as a future of companies and businesses is its potential to integrate into every factor of the business. This technology has the capacity to allot an individual number to every item, which can provide an ease in the tracking of that item at every step of the process.
This way it becomes easy for different organizations to keep the records of all stages from growing to picking to packaging, from the product arriving in the market to delivery of it in a systemized and decentralized manner. The conventional way of order delivery contains a great room for failures like data loss and much more.
There are some industries like those of diamonds and gems, in which provenance is highly needed. Some of the ledgers like Everledger, working in the UK have recorded details of more than 1.6 million items on the ledger. The data containing information about the size and color are stored on the blockchain, while a high-resolution image is used to match the digital twin. The blockchain users plan to do it with other products like wine in the near future.
Improving customer experience
For a very long time in past, companies have been thriving on delivering good customer services. These services are given to customers in the form of incentives like loyalty points, encouraging them to buy products at a discounted price and much more. These services can be improved and enhanced by companies maintaining a ledger of customer information to entertain them according to their needs and requirements.
The matter of customer experience is a subject of administration and processing. Companies can record the choices of customers and make them offers as per the latest trends and the buying habits of those customers, to take most benefit out of the gathered information.
When companies switch to blockchain with plans to entertain customers, they can easily use the information and convert them to reward points, which the decentralized system calculates and processes to further offer clients with discounted prices and better shopping options.
There are many start-ups that have already been working on incorporating blockchain with customer service and expanding the clientele with their lucrative offers. The companies like Loyall and Qiibee are some of the first ones to experiment in the field and arrive in the market. This can develop a positive customer and company attitude and add the interest of clients in the product.
Ownership and identity
Since the inception of the internet, the world has become an unsafe place for the majority. There are many scams and fraudsters that are hacking personal information of many and blackmailing them in return. There is always a threat lingering on the lives of people, their photos, their intellectual property that has been put on the internet and so much more. Blockchain technology, on the other hand, provides a solution to the growing problem by creating an individual code for every item present on the blockchain.
Kodak, a long-forgotten name which is resurfacing with blockchain technology is experimenting in their business. They are providing a platform that records and tracks the use of images, photographs, literary documents and much more across the internet. This system allows property (literary or visual) owners to demand a payment whenever the notification of their product has been used without permission. The purpose of this is to ensure a safe and transparent system where individuals can make a positive use of the internet and become part of the global village that the internet promises to make, without worrying for their safety and security.
This use of ownership and identity is not limited to just saving the photographs, the use of it extends to individuals securing their real estate and land property documents on the blockchain. It can also use mortgage applications and get the information secured within a short span of time, unlike the traditional way that takes months to complete the process.
Some countries of Europe like Switzerland and UK are also experimenting with the incorporation of blockchain with identity management. The process has remained successful in Switzerland.
Security in the field of the internet is another area that remains to be compromised on many fronts. As the subject of security has been discussed over and over again, there is no use of it being elaborated in the same length. However, it’s vital to know that blockchain secures the information that is present on the internet to be saved on the cloud. Users of blockchain using applications can secure their conversations, contacts, and photographs on a private key, not viewable by any other member on the internet. This data remains saved with the individual using the blockchain app and doesn’t require inquiry or verification from other participants of the blockchain network, but, any malicious act of hacking that data can instantly be caught as the saving of key needs verification from members of the blockchain.
Blockchain seems to be the most promising technology in the current times and is definitely here to stay. Many people look skeptical about the uses of it, however, if companies understand the benefits it can offer to them, they will undoubtedly never want to use any other technology for their businesses than this.