One of the hottest topics in business is blockchain technologies. Despite previously being very unknown, more and more businesses are seeing it as an extremely viable addition to their operations. That is why the following list of ways in which blockchain can help businesses has been assembled. The applications, in no particular order, are as follows:
- Eliminating transaction costs
- Showing a commitment to new technologies
- Payment systems can be improved
Eliminating transaction costs
Transaction costs exist because someone always has to have documentation of every single transaction that occurs in business. This concept is largely applicable to using a credit card to purchase any product. A bank must make a note of that purchase to ensure that you pay it back. With Blockchain technologies however, this documentation need no longer exist. One of the biggest benefits to blockchain is the ledger system that is able to track every single transaction on a ledger of sorts without the need for any human interaction. Therefore, this technology eliminates the need for a middle man and has the potential to save businesses thousands in transaction fees.
Showing a commitment to new technologies
Consumers like to do business with companies that are constantly evolving. As such, businesses that proudly promote their use of blockchain technologies can quickly pique the interest of consumers and drive more of them to the store or to a website, which has an immense potential to increase sales. Although there is still some misunderstanding in blockchain related technologies, the companies who are early adopters of the final applications stand to benefit the most. Those who simply follow the crowd into the future will be seen lagging and may quickly lose the interest of valuable consumers.
Payment systems can be improved
A big claim to fame for blockchain is the way it is utilized to reduce the threat of fraud and security breaches. This is largely due to the encryption techniques utilized. By eliminating counterfeiting as well as bank fraud, businesses stand to mitigate some of their largest risks. Also, because payment systems would then be essentially free, there would no longer be the need for expensive payroll services, even with the smallest of businesses. Although it is not clear exactly how yet, many experts believe that blockchain technologies will soon become accessible enough to be fully integrated with the modern business owner, regardless of one’s familiarity with the technology or its purposes.