Technology is getting better every day. This means a lot to business owners, especially small to medium business owners. Every entrepreneur seeks to do better in their business. Running one is far from easy. However, we have to acknowledge the fact that it is getting easier thanks to blockchain technology.
Before going into what blockchain tech is doing for businesses, let’s figure what it’s all about. A blockchain is a digital ledger of duplicated transactions and distributed across a network of computers on the blockchain. Every block in the chain has several transactions. Each time a new trade happens on the blockchain, a record of the transaction gets added to every participant’s ledger.
The database gets managed by multiple participants using distributed ledger technology (DLT). Every transaction is recorded with an unchangeable cryptographic signature, a hash. This means that when a block in one chain is changed, everyone will know some tampering has occurred. It makes it almost impossible for someone to hack the system.
A hacker would have to change every block in the chain and across every distributed version of the chain to hack the system successfully. The perfect examples of blockchain are Bitcoin and Ethereum. These blockchains continually grow as new blocks are being added to the chain, thus increasing the ledger’s security.
So now, after knowing what blockchain technology is, how can it help in running a business?
Blockchain technology helps streamline business processes. It does this by reducing friction between parties involved in exchanging information. With blockchain, you can use a private and validated shared ledger to guarantee the quality and origin of information, goods, or services. With blockchain technology, you can draft smart contracts that help you to execute business agreements automatically. Traditionally when two companies wanted to work together, it was pretty hard to do business without a physical presence. The trust was not there. However, blockchain technology has helped promote trust across organizations.
Handling the human resource department is not an easy task. You have to plan, recruit, interview, and hire new people into the company. With blockchain technology, verifying the credentials of job seekers and existing employees is a much easier process.
Blockchain also helps multinational corporations to standardize and simplify payments for employees in different countries. These companies can better take care of their employees. Technology is changing how companies compensate their international employees.
Accounting is a very crucial part of any organization. It requires a lot of transparency, precision, and accuracy. That is where blockchain technology comes in. It makes sure that there is transparency in every transaction in accounting. That means the auditor will have an easier time validating and sampling the transactions. This way, they can have time to handle other issues in the organization.
Blockchain technology enables companies to make authentic brand campaigns. Organizations connect directly with influencers reducing chances of fraud. Brands can now reach their target audience while avoiding click fraud thanks to blockchain.
Using blockchain-based systems can help solve legal disputes. The technology can help to prove certain services or goods were delivered. It also enables automatic transfers of assets when set conditions get met.
Blockchain technology also enables you to store important legal documents securely. With some blockchain platforms, you can have secure encrypted communication with your legal team and clients.
Blockchain technology allows businesses to organize their activities better while reducing costs, promoting trust, and getting rid of third parties. This technology is still in its infancy, as many businesses are yet to adopt it. However, its usage is rising fast. Now you can create your business model using blockchain technology. It’s all about efficiency and security with blockchain.