Blockchain technology has the business world as the major area of direct application. The technology has grown in popularity since the release of the Bitcoin whitepaper by the individual or group known as Satoshi Nakamoto.
Business proprietors all over the world are beginning to adopt blockchain technology for peculiar purposes that suit their operations. This makes it possible for them to maximize the opportunities and benefits of blockchain in revolutionizing the business sectors within which they operate.
There are a number of ways that blockchain technology is finding more regular implementation among businesses worldwide. They include the following:
Mechanization Through Smart Contracts
Blockchain technology is the backbone upon which smart contracts are created. By implementing smart contracts, the need for third parties in the form of middlemen and intermediaries is eliminated. Smart contracts automate legal arrangements, carry out accounting and escrow agreements which have been previously executed by third parties.
Blockchain technology also removes the need for transactions to be controlled by a central authority. It achieves this by connecting participating parties directly and requiring them to concur with the validity of the information provided in the contract. Because they are transparent, unlike physical contracts, customers are assured that they are doing business with genuine companies.
Blockchain technology accelerates transactions by providing speed and efficiency. Since third parties have been dismissed, it takes less time to complete contracts. Also, there is no need for a regulatory body because it creates a tamper-proof log of sensitive activity.
In international banking systems, traditional transactions processes are usually associated with a lot of complexities. The adoption of blockchain technology handles international payments and money transfers more efficiently and shuts out physical intervention by banks, eliminating fraud and reducing the margin for error. Because automation has been shaped into blockchain transactions with cryptographic algorithms that streamline these transactions, financial institutions are massively embracing the technology.
Advertising and Marketing
Juniper Research foretells that advertisers will lose about $19 billion to fraudsters in 2019 which is equivalent to about $51 million daily. This figure represents online and mobile device adverts and is projected to reach $44 billion by 2022. The technology (blockchain) fundamental to bitcoin and other cryptocurrency can play a very huge role in reducing “click fraud,” ensuring that marketers, and advertising executives reach their target markets.
Amir Jan Malik, Digital Marketing Expert at Accenture Interactive explained that currently the principles of blockchain, which were historically created to prevent banking fraud can be applied to programmatic media buying. Jan also stated that by using the system to monitor and police budget spend, advertisers can track their investment starting from the initial transfer of the media budget directly to the final publication of creative with the media owner thereby minimizing the risk of defrauding and underperformance.
The combination of blockchain and other critical emerging technologies in the digital ads industry is emphasized by novel advertising platform Ubex. Yet in the product development stages after a successful ICO, the project combines blockchain, AI and neural network to achieve a precise media marketing system for both advertisers, publishers and their audiences.
The technology helps in the elimination of indiscriminate advertising systems that broadcast irrelevant ads, thereby improving internet user experience and helping advertisers maximize their budgets.
Better Supply-chain Management
Let’s assume a small-business owner places an order with a supplier with whom he is familiar, this business owner may know his primary supplier but oblivious of any other secondary suppliers at a higher level.
Blockchain brings transparency into the supply chain and empowers a business owner with the ability to see every company that has participated in creating, growing, or manufacturing the components of a product it sells or service which it delivers.
Blockchain provides this kind of vital information in case of a product recall and whether a company desires to identify ethical sourcing and to also prevent purchasing counterfeit parts and products.
The Everledger blockchain that tracks the international diamond market is a typical example. It serves to control not just the quality of the precious stones in the market, but also helps to fight against the introduction of blood diamonds. This by extension helps in promoting world peace as the conflicts that are usually promoted by such practices are eventually discouraged.