Industry 4.0 led to numerous technological advancements. Blockchain technology is among the ones that have brought a revolution in the process of business transactions. Smaller organizations point out that blockchain technology is irrelevant to present business models. However, Blockchain is the future.
Don't you think businesses are missing out on something very essential? Let’s dive into in-depth views on how blockchain technology impacts your business models.
Impacts Of Blockchain Technology At A Glance!
Blockchain technology highly relies on mathematical encryption. It offers a seamless transaction system without involving any central authority. Only a digital ledger remains associated with this process, but with the introduction of Ethereum, there is no requirement for a distributed-ledger facility as well.
The latest survey claims blockchain technology will add nearly $1.76 trillion by 2030 to the global economy. Now think, how massive developmental opportunity is there for thinking beyond the brick-and-mortar structure without any requirements of a middleman? Take a closer look at the business applications of Blockchain Technology.
Protection Of Business Asset
Cybercrime is an alarming factor affecting thousands of businesses worldwide. Cybercrime incidents led to more than $6 trillion in annual loss as of 2021, and it is increasing day by day. Meanwhile, Blockchain technology provides access to a transparent, decentralized, and immutable database. So it ensures adequate transaction security due to the requirements of digitally encrypted fingerprints, called 'hash.'
Though blockchain technology doesn't provide complete safety against cybercrime, it hopefully will prevent $10.5 trillion in losses by 2025.
Seamless Supply Chain Management
The sudden surge of the pandemic led to disruption in the movement of essential commodities. The incident severely affected the logistics sector. One of the prime reasons is the lack of oversight by business owners at every stage. Well, the incorporation of Blockchain technology offers transparent and traceable supply chain models.
We can take the example of Tardelens, developed by two leading tech giants, IBM and Maersk. For leading logistic companies CMA, ONE, Hapag-Lloyd, MSC, etc., the inclusion of blockchain technology-supported supply chain platforms, Tradelines. It resulted in a rise in efficiency by 15%. Having a technology embraced-supply chain system, the organization no longer needs manual handling of documentation processes and legacy data facilities.
Faster Payment Facilities
Perhaps a slower transaction system can disrupt the seamless flow of business processes. Blockchain technology paves the way for faster payment facilities by absorbing the requirements of intermediaries. Presently, we must involve third-party banking authorities for secure transactions. Using mathematical encryptions, this latest technology infrastructure provides hassle-free operations.
For example, Bitcoin includes distributed-ledger technologies to offer business transactions, whereas Ethereum and Ripple offer more innovative platforms for cross-border payments at minimal overhead costs. Centrifuge and Paperchain, both of these fintech platforms, have incorporated blockchain technology-equipped advanced payment facilities that allow faster remittance in the music streaming industry.
Unquestionably, from late 2017 and early 2018, the hype surrounding cryptocurrencies and the underlying blockchain technology was at its peak. While everyone is speaking about the Blockchain system and the technology behind cryptocurrencies, smaller enterprises lack enough knowledge about its future impacts. The article thus compiled three practical applications for aiding future business opportunities. Do you need help with blockchain services in India? Then look no further than Your Flow India. They are market experts in this domain. Contact them today.