By now, many people will have at least heard of blockchain technology, even if they aren’t completely knowledgeable on how it works and how it will help us in the future. To put it simply, blockchain technology records every transaction that occurs, so if you have one crypto coin, recorded within it is every transaction it has ever been a part of. This technology reduces the chances of fraudulent transactions and can be used for many purposes such as financial transactions to smart contacts, and recording who has owned art or land.
We’ll look at a few ways blockchain technology can help businesses.
Allows the implementation of smart contracts
No more need to worry about a client reneging on a contract; with smart contracts, the blockchain-based code written into it will self execute once terms are met. For example, once a contract is signed, the title of a property and the money will automatically be transferred over to the buyer, removing the opportunity for human error or unscrupulous practices. This will help businesses reduce their losses and be able to conduct their work with more certainty, and the same goes for the customer. Trust is the foundation of business and blockchain technology will only reinforce it.
Cheaper and faster transactions
As mentioned in the last point, smart contracts can be executed automatically and this means there is no need for human intervention which inevitably slows down current transactions and increases the cost of doing so. Cryptocurrency is built on blockchain technology so if businesses were to start accepting different cryptocurrencies, they would certainly be looking at adopting the ones that have the lowest fees and quickest transactions. At the moment, Bitcoin is the leader as it was the first created, however, over the past few years, other cryptocurrencies such as Ethereum and Cardano have been developed to challenge Bitcoin and improve upon it. For businesses to be able to automate their transactions and lower the cost of doing so would certainly be a huge help for them.
Everything can be recorded securely and not be tampered with
From financial transactions to users of the company’s room booking system, everything recorded using blockchain can be done so securely and in most cases, cannot be tampered with. When cryptocurrency is exchanged, these transactions can be seen on a public ledger, although the identities of those involved in the transaction can be kept anonymous. Everything is kept chronologically and therefore we can see every step of its history. For room booking systems, for example, a business can see who booked what room and who entered it, which certainly improves recordings and security. It can also be used for contact tracing.
Blockchain has so many uses and we are just at the very beginning of its lifespan. There are so many more opportunities and developments that will happen over the next few years and it will soon become an essential part of business practice.