How will the blockchain technology improve the efficiency of business operations?
Blockchain technology has disrupted several industries including healthcare, banking, real-estate, supply chain, and many more. The worldwide spending on blockchain solutions is $6.6 billion. It is forecasted that blockchain will generate more than $3 trillion by 2030.
The impact of blockchain solutions will also disrupt businesses and the way operations are conducted.
Applications and Usage of Blockchain and Crypto in Business
Blockchain technology has been proven to facilitate a more effective management of operations, build stronger relationships customers and improve systems.
A number of companies have been using cryptocurrency for operational, investment and transactional purposes. One of the many ways it helps businesses grow is by enabling transactions with little to no hassle, in a very short span of time. Cryptocurrency and blockchain are the future of financial transactions, and have several applications and usages for businesses.
Let's take a look at the use-cases of blockchain and crypto used for business operations.
1) Eliminate intermediaries
Smart contracts are self-automated contracts that have the terms and regulations of all the involved parties written in codes, and enforced in real-time on the blockchain technology. It helps companies to save time and money, while adding accountability to every party involved in the deal. This also eliminates the need of fee-charging middlemen and external parties.
For instance, Monetha is a financial services company that uses blockchain and smart contracts for enabling trust within the platform, ensuring that all requirements are fulfilled before a transaction is executed.
Smart contracts are also becoming increasingly popular in sectors like government and real estate.
2) Management of customers' and employee data
When the customer's and employee’s information is stored on the blockchain network, it becomes easier to verify identities and since the information on the blockchain network cannot be changed, this reduces the risk of theft, money laundering or cybersecurity frauds. Since the information on the blockchain network cannot be changed, businesses can check the transaction records to identify loyal customers, learn their spending patterns and more.
For instance, Shopin is a blockchain-powered shopper profile platform that works to curate data from shopper habits to provide consumer and merchandise-focused insights into who they should be targeting, and how.
3) Improve marketing practices
Good marketing is a key point in the success of every business. As mentioned above, blockchain keeps track of customer behaviour and transactions. This data can be used to design a campaign that specifically targets the ideal customers marketers have in their mind. Blockchain can also identify and track whether the visitor traffic to the campaign are from real people or bots. In this competitive marketing industry, blockchain can transform the way a business targets and market to its customers.
For instance, MadHive tracks, stores and reports on the campaign-generated, first-party data using blockchain technology. It can identify and target key audiences by leveraging third-party data from its integrated partners.
4) Verifying the authenticity of information
With hiring new employees, there's always a risk of candidates forging certain documents and certifications to look impressive.
In a traditional scenario, it would be a tedious process to verify whether these documents are legitimate. However, with the advent of technologies like blockchain, businesses can quickly confirm the authenticity of the documents. Since all academic records, past employment records, references and more are stored in an unmodifiable digital ledger, an employer can easily verify his or her records. This helps to choose a better and more suited employee for the business.
One such example is Monetha. They store critical information about a person, product, or business so that users can view and evaluate relevant details before engaging in a transaction.
5) Faster and cheaper fiat-to-crypto transactions
Cryptocurrency is definitely revolutionizing the financial industry. It has been used by companies to compensate employees in less than an hour, and used to transact freely between vendors and customers. These transactions are not just quicker, but are also hassle-free without any third-party involvement of a centralized bank.
Additionally, making transactions using blockchain helps a business save money to a great extent. Unlike traditional banking systems, blockchain has drastically reduced transactional fees. Furthermore, it helps keep a track of cash flow and payments, so that businesses don’t overpay.
XanPool is an internationally compliant fiat-gateway software solution for cryptocurrency businesses and exchanges. Their software helps crypto enthusiasts to convert their local currency into digital currency instantly via local payment methods e.g. PayNow in Singapore, ViettalPay in Vietnam, DuitNow in Malaysia and PayID in Australia.
6) Borderless payment economy
A lot of businesses these days outsource work from other countries to save up on costs. Making crypto payments on the blockchain is especially beneficial if companies have remote or international employees. With XanPool's cryptocurrency payment gateway, businesses can make international payments hassle free without any chargebacks. This means that they won’t have to pay outrageous fees to transfer money internationally. This is beneficial for both the employer as well as the employee, since the transaction happens much faster.
7) Instant liquidity
Apart from reducing unnecessary transactional costs, blockchain drastically improves and fastens the payment process. In conventional financial ecosystem it takes days or even weeks to process and receive payments.
Alternatively, Bitcoin, a popular cryptocurrency, enables businesses to receive payments for their products and services in a matter of a few seconds. This allows businesses to gather sufficient revenue to fund operations and expand at an improved rate. The improved payment processing systems further allow a business to gain more customers due to its ability to let its customers complete transactions faster.
The future of business transactions and finances seems to be shifting towards digital currencies and technology. It is quite evident that blockchain technology will soon engulf the traditional ways of dealing with businesses, and a new wave of digitalization will take over. By harnessing the power of blockchain, companies have a competitive edge over others. In conclusion, with the right skills and knowledge, blockchain and cryptocurrency have tremendous scope to improve business.