- The 5 benefits of using a blockchain for business:
- How industries can benefit from blockchain:
- The 5 benefits of using a blockchain for business:
- Enhanced security
Your data is sensitive and crucial, and blockchain can significantly change how your critical information is viewed. By creating a record that can’t be altered and is encrypted end-to-end, blockchain helps prevent fraud and unauthorized activity. Privacy issues can also be addressed on blockchain by anonymizing personal data and using permissions to prevent access. Information is stored across a network of computers rather than a single server, making it difficult for hackers to view data.
- Greater transparency
Without blockchain, each organization has to keep a separate database. Because blockchain uses a distributed ledger, transactions and data are recorded identically in multiple locations. All network participants with permissioned access see the same information at the same time, providing full transparency. All transactions are immutability recorded, and are time- and date-stamped. This enables members to view the entire history of a transaction and virtually eliminates any opportunity for fraud.
- Instant traceability
Blockchain creates an audit trail that documents the provenance of an asset at every step on its journey. In industries where consumers are concerned about environmental or human rights issues surrounding a product — or an industry troubled by counterfeiting and fraud — this helps provide the proof. With blockchain, it is possible to share data about provenance directly with customers. Traceability data can also expose weaknesses in any supply chain — where goods might sit on a loading dock awaiting transit.
- Increased efficiency and speed
Traditional paper-heavy processes are time-consuming, prone to human error, and often requires third-party mediation. By streamlining these processes with blockchain, transactions can be completed faster and more efficiently. Documentation can be stored on the blockchain along with transaction details, eliminating the need to exchange paper. There’s no need to reconcile multiple ledgers, so clearing and settlement can be much faster.
- Automation
Transactions can even be automated with “smart contracts,” which increase your efficiency and speed the process even further. Once pre-specified conditions are met, the next step in transaction or process is automatically triggered. Smart contracts reduce human intervention as well as reliance on third parties to verify that terms of a contract have been met. In insurance, for example, once a customer has provided all necessary documentation to file a claim, the claim can automatically be settled and paid.
In general, blockchain technology is useful in those use cases where there are more than one administrative authority and there is a trust deficit among those parties. A typical example could be a supply chain management system, where multiple parties collaborate together to deliver goods. Another example could be a consortium of independent companies working on a government project, where there is a trust deficit between the parties.
However, now we have to decide whether we should use public blockchain or private blockchain. If the stored value in the blockchain needs to be publicly verifiable then we should use public blockchain, whereas if the data is only for specific parties then a private blockchain is a better choice because consensus mechanisms can be simplified.
- How industries can benefit from blockchain:
- Blockchain benefits in supply chains and food chains.
Building trust between trading partners, providing end-to-end visibility, streamlining processes, and resolving issues faster with blockchain all add up to stronger, more resilient supply chains and better business relationships. Plus, participants can act sooner in the event of disruptions. In the food industry, blockchain can help ensure food safety and freshness, and reduce waste. In the event of contamination, food can be traced back to its source in seconds rather than days.
- Banking and financial industry blockchain benefits.
When financial institutions replace old processes and paperwork with blockchain, the benefits include removing friction and delays, and increasing operational efficiencies across the industry, including global trade, trade finance, clearing and settlement, consumer banking, lending, and other transactions.
- Healthcare blockchain benefits.
In an industry troubled by data breaches, blockchain can help healthcare improve security for patient data while making it easier to share records across providers, payers, and researchers. Control over access remains in the hands of the patient, increasing trust.
- Government blockchain benefits.
Blockchain can help governments work smarter and innovate faster. Secure sharing of data between citizens and agencies can increase trust while providing an immutable audit trail for regulatory compliance, contract management, identity management, and citizen services.
