To some, blockchain technology is far more promising than the cryptocurrency it was made to support.
The sheer demand for Bitcoin is enormous at this time, but since it’s essentially backed by nothing but sentiment, it’s fair to believe that the Bitcoin “bubble” may eventually pop.
The benefits of blockchain tech, however, are more than enough to sustain its importance for generations to come.
So, without further ado, here are the seven most important benefits of blockchain tech that will prove to be useful to businesses in multiple industries:
1. Supply Chain Oversight.
For supply chain management the blockchain offers benefits of frugality and traceability. Simply put, a blockchain can be used to track the movement of goods, the quantity thereof, and their origin, and so on and so forth. This brings about a new level of transparency to business to business ecosystems — simplifying once complex processes such as production process assurance, ownership transfer, and even payments.
2. Quality Assurance Purposes.
If an irregularity is noticed somewhere along the supply chain a blockchain system will lead one all the way to its unique point of origin. This naturally makes it easier for businesses to carry out investigations and then perform the necessary actions thereafter.
A good use-case example for this is in the foods sector where tracking the batch information, origination, as well as the other important details is crucial for safety and quality assurance purposes.
3. Accounting Practices.
Recording transactions through the blockchain literally eliminates human error and protects the data from possible interference and tampering.
Note that records are verified every time they are passed on from one blockchain node to the next. Along with the guaranteed accuracy of records such a process will also leave a traceable audit trail, which could be incredibly useful.
Certainly, the entire accounting process also becomes a lot more efficient on a base level. Rather than maintaining separate accounting records businesses can only keep one joint register. Thus, the integrity of a company’s financial info is also assured.
4. Stock Markets.
The idea of using blockchain tech for securities trading has been around for a while. Given the nature of blockchain systems it is not surprising to discover that stock exchanges now consider it as the next huge leap forward for the securities industry.
For example, Australia’s stock exchange is already set on switching to a blockchain system for their business.
5. Voting Records.
Similar to supply chain management, the promise of blockchains in the aspect of voting boils down to trust.
Currently, opportunities that pertain to government elections are being pursued.
One example is when the NASDAQ leveraged blockchain tech to enhance shareholder voting. It worked with the combined efforts of their blockchain technology partner and local digital identification solutions, which provided governments with ID cards. After seeing the subsequent success they described the e-voting project as both practical and necessary.
Households and Commercial establishments can now use blockchain-enabled transactive grids for sustainable energy that accurately tracks usage.
A few examples would be Powerpeers in the Netherlands as well as Exergy in Brooklyn, New York. Blockchain may also be used to improve tracking of so-called clean energy. Once power is sent to the grid no one can really tell if it’s generated by solar energy, fossil fuels, or wind.
Traditionally speaking, renewable energy is tracked through trade-able certs that are provided by the government. These certs are essentially awful in serving their intended purposes — something that blockchain would have no trouble with
7. P2P Global Transactions.
Lastly, the rise of cryptocurrency in the world isn’t without merit.
For one thing, it enabled the secure and speedy transfer of funds across the world.
While there are already a slew of services like PayPal that process global payments, they typically require sizable fees per tx.
Other Peer-to-peer payment services also have specific limitations, such as minimum transfer amounts as well as location restrictions. That is why more businesses and regular customers, are beginning to prefer cryptocurrency for international transfers.
Not only are they generally more secure, users are also granted more freedom when it comes to the movement of their funds.
It is evident that the blockchain is making moves into different industries outside of cryptocurrency. You could even argue that most folks aren’t ready yet for decentralized digital ledgers, but looking at blockchain’s progress so far, it won’t be too long before non-adopters follow in step.