Blockchain is firmly in the mainstream. As the toing and froing of cryptocurrency values has captured the attention of the public and press, focus has shifted towards the wider uses for this technology. As a result, global blockchain solutions spending is forecast to rise from $2.7 billion in 2019, to $19 billion in 2024.
Businesses are cottoning on to the benefits of blockchain tech, but what’s behind this meteoric predicted rise? What are the practical ways businesses can use blockchain?
What is blockchain?
First, let’s define what blockchain is. At its most basic form, a blockchain is a completely public, decentralised digital ledger that records and tracks transactions of assets, and information relating to said assets. Anyone that’s a member of the network can see these records and all their details, making the ledger totally transparent.
Each record is only documented once, making it a highly efficient way of storing information, and no one who accesses the ledger can alter the data held on it, making it an extremely dependable source of information too.
Anything can be recorded on a blockchain – ownership of products, locations of items, contracts, payments; any data that could benefit from transparent, immutable storage.
4 ways businesses can use blockchain
So, how can companies use blockchain the right way?
Use it the right way
First and foremost, any uses of blockchain in a business setting need to be assessed through the lens of its legal and financial impact. You must understand your business’ particular needs, challenges, and legal requirements, then frame your use of blockchain technology accordingly. In the process, you’ll understand how your business can benefit, but also the technology’s limitations vis a vis your company. Seeking legal advice from technology law experts can be beneficial here.
Record contracts
If your business deals with multiple suppliers, ensuring that every party has the most up to date copy of the contract can be difficult – especially if the conditions of the contract were subject to plenty of negotiation. With a blockchain, everyone can view the terms of a single copy of the contract, all in one place, without being able to edit the terms.
Improved payments
Blockchains are perfect for making and recording payments. That’s because payment details are recorded alongside the transfer of digital money (removing the need for invoices and receipts), payments are made instantly over the network, and no third parties need to be utilised, removing payment fees.
Supply chain management
With many businesses seeking to create sustainable supply chains in the wake of several embarrassments and scandals, blockchain can help. With it, businesses can see the entire supply chain through the ledger, including who is supplying suppliers. This allows much improved transparency, and may also force improvements throughout the chain.
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