A recent study made by IBM surveying over three thousand executives have shown that- 80% of them are actively using or planning to implement some aspect of blockchain technology into their everyday business.
The study is clearly indicating that blockchain which was once a buzzword now seems quite promising as it allows-trust less-consensus between multiple parties based on peer-peer networking.
This is the reason, blockchain, which began as the basis of cryptocurrencies such as bitcoin is now spreading a wave of revolutionized technology across several industries. Also, it is expected that this year the businesses are likely to spend around $2.9B on the technology which is up almost 90% from 2018 as per the reports by IDC. In fact, industries starting from insurance to gaming to cannabis are all looking up to use blockchain applications.
Bitcoin’s popularity demonstrated the need for blockchain’s application in finance that made entrepreneurs believe blockchain for business could transform many more industrial domains.
Hence, it is completely practical and wise to incorporate and implement the concept of blockchain for business. But do we really need to incorporate blockchain for fueling the success of the business? Or How will you figure out if choosing blockchain for business can become a wow-factor for your business too?
To answer all such questions, we have put together things about blockchain answering the maximum of questions to let you figure out the uses of blockchain in business along with finding out the answer if you need blockchain for business or not.
Without further ado, let’s get started-
How To Use Blockchain For Business
Similar to the days when the internet was evolving, the blockchain world is still underdeveloped to a huge extent to work flawlessly. Thus, there are various elements that need to be addressed before blockchain for business and startups become a mass practice.
When talking about blockchain for startups, investing time, resources, as well as money to develop a business model by placing the technology at the center of the process or using it as a major part of the working mechanism, will give startups an edge over their competitors who are working in the same domain.
Being a startup, it is always recommended not to copy how other startups are using blockchain technology for operating your business operations or using an outdated infrastructure or software. The reason behind the former one is obvious whereas the latter one increases the cost of conducting business to a great extent.
Also, business operations are manual in nature and human errors are obvious, but the integration of blockchain for business operations, startups will be able to solve or eliminate many such issues.
Because the technology is known to decentralize data segregated among different processes- making it easy for startups to not to rely on manual labor for collecting and processing data.
Securing The Data
There is no denying, Cybersecurity is a concern for many companies, be it well-established firms, startups or Blockchain Mobile App Development Company. Meanwhile, there is a survey conducted detailing that global spending on cybersecurity based services and products like IoT and automation will likely increase by $1 Trillion in the coming five years.
And moving on to blockchain for business that comes with security proof function, the practice is poised to become the actual mode of gathering and organizing the enterprise data.
However, the data that will gather in the ledger will automatically be encrypted with the newest and the greatest of the cryptographic methods, meanwhile, the warehouses can only be accessed through a key-value mechanism that validates and authorizes the identification before finally granting access.
Moving on to the decentralized mechanism of blockchain for business- be it small or large, it reduces the security risk to a great extent. Furthermore, as the distributed system cannot get manipulated by any single entity, it becomes impossible for hackers to make any kind of changes without notifying everyone in the network.
As we are done with the basic understanding of Blockchain, let us now come to the most important question and that is- why blockchain for startups is the mandate need-
Synopsis Of Blockchain Uses For Business
This is how Blockchain for business streamlines the processes-
Contract Creations And Abiding
When starting a business, you will be required to sign a number of contracts, be it with your food and beverage vendor, interior designers, third-party stakeholders and also with offshore software development company.
With so many contracts lined up to be followed, using blockchain for business can become handy through its smart contract route. And by using the smart contract, it is impossible for any of the involved parties to breach the smart contract in any way.
Payment And Money Transfer
One of the most important features of blockchain for business can be seen as the use of technology in the payment and money transfer domain.
Coming to startups, initially, they need to deal with a number of vendors across the world in order to avail of low-cost while getting high-quality services. And to offer ease and flexibility, blockchain with its cryptocurrency elements is the ultimate solution for making cross-border payments cost-effective and easier as compared to the traditional mode of payments.
Distributed Cloud Storage
Another benefit of blockchain for business as well as for startup is its distributed cloud- storage. A distributed cloud-storage comprises peer-to-peer decentralized cloud storage solutions. Through the combination of cryptography and blockchain, enterprises can protect their official files on both-transmission and in nodes- decentralized cloud storage in order to make the files unhackable.
Once the process takes place, information related to every data be it how it moved, who has accessed the file, and how it was governed can be seen by anyone who got access to the blockchain. The whole mechanism offers full accountability, transparency, traceability for the cloud.
Protection Of Digital Identity
Another reason showcasing why blockchain is relevant for business is the security aspect. No matter how strong security you have against your operations and your identity, there are always chances of leakage of identity-related issues on the internet and if it falls in the hands of hackers, nothing can tape the leakage of sensitive data.
Startups in their growing phase, usually sign up and subscribe to a number of websites that in some cases can be malicious and fraud. To rescue them from such situations, Blockchain, can be used as a platform to protect identities from such malicious activities. Not just that, the technology helps in handling reconciliation and authentication problems while giving businesses the freedom to develop digital identities instead of using usernames and pin codes. These digital identities come up with comprehensive security elements that are capable of saving the institutions and their customers’ valuable resources and time.
Supply Chain Management
When it comes to supply chain management, there are a number of ways blockchain for business can be used in order to make it more real-time, accessible, transparent, and efficient.
There are different applications meant for the same, let’s check them out one by one-
When using blockchain for business while indulging in the supply chain for speeding up the administrative processes, the additional costs occurring in the system gets automatically reduced with the transactions’ security guaranteed.
Furthermore, the elimination of intermediaries and middlemen in the whole process of the supply chain ultimately lowers the chances of duplication of the product along with frauds.
Provenance tracking and record-keeping become easy for the product information that can later be accessed through RFID tags and embedded sensors. Each and every detail of the product, be its initial stage to its present status, everything can be tracked easily through blockchain. Moreover, provenance tracking is also beneficial when it comes to the detection of fraud and forgery in any part of the supply chain.
There are various ways to increase quality customer support, let’s dig deeper to know what they are-
Cleansing Of Data
Customer Relationship Management (CRM) users all over the world sometimes have to deal with inaccurate and duplicate data.
With blockchain, customers can have their own personal block with a unified and accurate picture of their personal details along with transactions made earlier and subscriptions, etc.
Loyalty programs are basically a way through which companies aim to drive profits by adding value to the overall customer experience. In such a situation, Blockchain for business can be used by the brands to fulfilling their ultimate aim.
Through the accessibility of blockchain, consumers can have a single decentralized wallet that will sync with all the brands. Moreover, they will not be bound by the rules and limitations of individual brands and also, users will have greater control over the whole experience while getting great deals from the brands itself.
Advertisement and Promotion
Branding, advertising and promoting the business is mandatory for the businesses in order to create awareness about their product or service in the market.
Being one of the most important elements of the business, the advertisement industry is still filled with a number of loopholes that make them expensive and non-transparent. These things can be eliminated with the help of Blockchain on the promotion front.
Let’s check them out-
Targeting The Audience
Earlier, marketers used to rely on more than one source in order to dig into information related to the user’s buying behaviors. But, now with the introduction of blockchain, it is easy for advertisers to create buyer’s demographics along with bringing out necessary information straight from the buyer themselves.
Reliable Ad Buys
It is often difficult to see whether the people who have clicked on the ads were genuine or paid clickers. In such a situation, blockchain can help advertisers to know if the clicks they are getting were genuine or coming from the people who are not their target audience.
Verification Of The Ad
The introduction of Blockchain for business can help bring out the transparency between the product’s description labeled in an advertisement and the details shown on the site. Blockchain ensures that the actual information is exactly the same as what was shown in the advertisement.
For Generating Funds
It is important for any startup to grow and their growth depends on the investments they receive. The moment your startups get backed by investors, you get funds and support for growing and expanding your business.
And when we talk about raising funds and finances, there are few options available in the market like- crowdfunding, Angel Investments, Venture capitalists, Bank Loans, Small Business Administration Loans, etc. Meanwhile, among these ways of generating funds, Venture Capitalist has established itself as the most preferred way of raising funds and also ICO- a blockchain-powered way of raising funds is likely to replace the VC model soon.
So these are a few of the advantages of blockchain for business, but it is no stranger to its own certain set of challenges.
Being so effective and actually revolutionizing, there is a list of companies that are using blockchain application wholeheartedly-
A Quick Look at Blockchain Business Applications
These are the few names that have shown their trust in Blockchain along with highlighting blockchain business opportunities. Meanwhile, on the other hand, as blockchain is still developing, there are certain challenges that are generally faced by startups and entrepreneurs when trying their first hand on the blockchain technology.
Challenges Startups Need To Overcome
Regulations In Complexity
One of the biggest barriers generally faced by the enterprise while adopting blockchain is the regulations safeguarding entrepreneurs when anything goes wrong.
The advantages of blockchain for business as well for a startup can only be taken when there will be DLT based infrastructure placed. DLT is something that requires sound technical knowledge while having knowledge of capital. Meanwhile, the solution to this is investing in skilled blockchain developers who are well-versed with how to use blockchain for business can integrate the technology in the existing system and then integrate it slowly and gradually instead of using it all at one go.
No doubt, the advancements in technology and techniques is equally the same for the hackers also. Moving on to the other side then the internet is filled with blockchain hack events causing people to lose millions while showing the need for safety the biggest factor in the blockchain.
So, the solution to this challenge is going ahead by employing a private or permissioned blockchain ecosystem instead of a permissionless or open blockchain.
By making blockchain permissioned, you simply add another security level to the whole mechanism in order to make it unhackable.
As now we have seen how blockchain can help startups while showing in the challenges and the ways to overcome them. With this, let us not miss the platforms you need to work around for employing the technology in your startup.
Blockchain System Platforms
Here is the list of platforms we believe can help you-
Seeing the content, the blockchain systems usually have more throughput while having lesser latency and less complex consensus protocols compared to the standard public blockchain like bitcoin and ethereum.
If you are still stuck with the whole concept and confused about whether to invest in blockchain for business or not while carrying the confusion regarding various blockchain applications, let us help you. Our blockchain experts will discuss the benefits of blockchain with you while suggesting other opportunities lying with it.
Co-Founder and AVP Technology at Appventurez Mobitech. A tech enthusiast who has broad expertise in delivering end to end software solutions. He is an expert technocrat ho has in-depth knowledge and is highly experienced in delivering solutions for Android, Xamarin, Ethereum Smart Contracts, ASP.net.
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