Companies are forced to evolve as a result of new technologies, which disrupt their entire business models and lead to new ones being established. Businesses always need to be on the lookout for new technologies and innovations which can have a significant impact on how consumers interact with their service or product.
There are many instances of new technology changing the way an industry works. A good example of this is the introduction of the internet. When the internet first started to become popular, many businesses were successful in realizing its potential and implementing it into their strategy. At the same time, many other businesses failed to adapt and failed. As a result, the internet led to the demise of many traditional brick-and-mortar stores, but it also brought new convenience and better prices to consumers.
One of the most exciting technologies currently being implemented into global business is blockchain. This innovative way of storing and reading data has the potential to cause just as much if not more of an impact than the internet. Let’s look in detail at what blockchain is and its impact on business operations.
What is Blockchain?
When most people hear the word blockchain, they might automatically think of cryptocurrency. However, blockchain technology has uses in many other areas too, including business. Blockchain is simply a way of storing data in a way that can’t be tampered with. As new information is received, by the blockchain, it is entered into a new block, which is connected to other blocks in a chain. Blocks get filled with data before being chained to the next block in a long chain of chronologically ordered data.
Blockchains have mostly been used in recording financial transactions, which allow for trustless payments if the blockchain is decentralized. Payments in the US being made using cryptocurrency are more popular than ever, with businesses and consumers eager to spend crypto online, as demonstrated by this infographic. However, a blockchain can be used to store all kinds of information. Advantages of a blockchain over a traditional database include an extremely secure network, transparent data, privacy, no need for middlemen, 24/7 availability, and accessibility for anybody with an internet connection.
How Can Blockchain Be Implemented into Business Operations?
Blockchain technology has the potential to be revolutionary, making things more convenient and safer for consumers while forcing US businesses to adapt and change their business models to compete. Some of the biggest examples of how blockchain technology is being implemented into business include:
Decentralized finance , also known as “banking without a bank,” is one area where blockchain is gaining traction. The biggest use cases for blockchain right now are cryptocurrency savings, lending, trading, and hedging. As an example, platforms such as Aave, Uniswap, and Compound. These decentralized platforms offer users the chance to invest and trade cryptocurrencies, as well as earn interest on their investments.
These blockchain business models provide an alternative to traditional centralized cryptocurrency exchanges, using trustless smart contracts to manage funds. They also offer an alternative to traditional banking, providing a much higher rate of interest on savings. The other distinction between this and a regular bank is that the assets are always in the user’s ownership. This does carry some potential downsides, such as a lack of fraud protection and the possibility of a user losing their funds completely.
Supply Chain Management
A blockchain supply chain can allow for better management of a supply chain by recording price, date, location, quality, certification, and other pertinent information. The availability of this information within the blockchain can improve material supply chain traceability, reduce counterfeit and grey market losses, improve visibility and compliance over outsourced contract manufacturing, and potentially boost an organization’s position as a responsible manufacturing leader.
Examples of supply chain management being handled using blockchain and cryptocurrency include Vechain, which is used by Sam’s Club, a China-based subsidiary of Walmart to track the journey of food products. This type of project can increase food safety and give consumers more trust in the products they consume. There has been a lot of business growth in the supply chain management and logistics industries in the US recently, and blockchain technology can help to solve a lot of problems in this field.
A textbook example of a field that can benefit from blockchain technology is accounting. Currently, accounting faces a lot of issues including overly complicated tax codes and the need for a high level of accuracy at all times. Many of these problems can be solved using blockchain technology. The blockchain’s transparency can help auditors spend less time sampling and authenticating transactions. Auditors could focus on controls and other critical responsibilities if they had more time, allowing this change to innovate business models.
Techugo is one of the biggest corporations that has been involved in the blockchain space since its inception. In 2015, the firm released Rubix, a “one-stop blockchain software platform.” Since then, the company has proceeded to grow its involvement in blockchain further, including a relationship with Waves Platform to make crowdfunding and cryptocurrency trading easier to access.