The blockchain technology market is constantly expanding across different industries and so, blockchain benefits are great.
Blockchain technology impacts several areas, especially the business world. It holds a high potential to transform businesses and modify the entire online business model.
The technology affects contracts and how businesses partner with each other. A blockchain is a powerful tool for those who know how to utilize its potential. It brings a lot of ease to the way companies operate.
The modern internet is the internet of information, while blockchain technology is the internet of value. Blockchain is the tech behind cryptocurrencies like bitcoin, though it has developed into a generalized technology.
The technology's market size worldwide is about 1.2bn USD. With the misconceptions around blockchain technology, it's possible to miss its incredible benefits.
In this article, we'll explain blockchain technology and walk through the several ways blockchain technology benefits online businesses.
What is blockchain technology
Blockchain is a term widely used in recent times. Still, many individuals are yet to understand what blockchain technology entails. While some consider it a fad, others link it with the crypto bubble.
Blockchain technology is a distributed public ledger. It's like a scenario where two kids who usually share cookies but only with their parent's approval decide to share the cookies without either parent's permission. In the case of a transaction, sharing is registered in a public ledger where parents and kids have access to every transaction.
Each block in a blockchain retains information about every dealing, stamp, and identity of the individuals.
Bitcoin is a big part of blockchain technology
Adopting cryptocurrencies like bitcoin allows you to make and receive payments with other payment methods without solely depending on fiat money. Hence, allowing you to provide customers with different payment options. Bitcoin is available for purchase on several exchange platforms. If you're wanting to add this form of currency to your business, click here to buy bitcoin and join the blockchain revolution.
8 Ways blockchain benefits and impacts online businesses
The pandemic witnessed several businesses fizzle out while many more came to light. Companies that adopt blockchain can notice a massive growth in business operations and increase their customer base. In fact, experts from theblockchainrecruiter.com believe that this is the future of online businesses. Industries will thrive with the help of blockchain technology because of its impact on businesses.
Most growing businesses are going digital, and so are their customers. Therefore, these online businesses need to adopt models to build trust and make transacting online easier for their customers. Adopting blockchain is a game changer for online companies.
Here are the ways blockchain will impact online businesses.
Security and privacy
Though fraud occurs in every form of business, online businesses are more prone to fraudulent activities than traditional businesses. Scammers perform fraudulent transactions to steal funds or goods from consumers.
Another issue online businesses face is phishing. In a phishing scam, scammers attempt to get consumers' personal information, such as login passwords or bank account details. Once the user inputs their login information, scammers access the information to steal their funds.
Data security is a significant consideration for shoppers and sellers in online shopping. However, many high-profile data breaches in recent years have put millions of people's personal information at risk. Privacy is the foundation of freedom. Leveraging a blockchain architecture will improve your online business's data security.
With blockchain, data that the user creates is owned by the user and used for the user's benefit. This assurance of security and privacy will increase users' trust in online businesses.
Faster transaction
Blockchain technology eliminates the need for any intermediary during transactions. This makes transactions faster since intermediaries don't verify and approve the transaction. It also permits a larger volume of transactions since it is the central authority to regulate the transaction volume at a time.
Blockchain has significantly improved cash flow in startups and online businesses by eliminating the need for third parties and bringing transparency by including documents like billing declarations and invoices. Hence, it helps online businesses gain customers' trust since there's no need for an intermediary.
Immutability
Typically, It's impossible to tamper with any information on the blockchain. Some businesses partner with each other and have binding contracts by using smart contracts.
When a blockchain stores Information, it secures it with cryptography which ensures only individuals with the key will access the information. Companies that need a high level of confidentiality benefit from the privacy this modern technology provides.
In several cases, scammers duplicate business websites and use them to defraud unsuspecting customers. However, with the aid of blockchain, companies will verify the originality and authenticity of every business deal.
Blockchain also helps organizations to identify and track scam sites. Some companies also use blockchain to track the authenticity of resumes and CVs submitted by job applicants to minimize forgery and make the screening process more efficient.
Trust
Businesses thrive on trust. Trust is an essential tool for online businesses. Imagine sharing your deep secrets with people you don't trust.
Yet, We have had to trust intermediaries that we don't know. Blockchain encourages trust between entities where trust is either lacking or unproven.
Hence, these entities are ready to perform business or share data in ways they wouldn't have or in situations where they'd have needed an intermediary. Since every block in the blockchain contains information about every transaction, it is easier for customers to trust these businesses as previous transaction details are accessible.
Creating a system that facilitates real-time tracking of parcels
One of the most significant challenges online businesses face is tracking packages delivered to customers. Many online companies rely on third-party delivery services. While this serves in many cases, it's expensive and time-consuming.
Some customers are skeptical about buying from online businesses as there have been cases where they receive something different from what they received.
With blockchain technology, businesses can track the progress of their shipments successfully.
Thus, they stay current with the issues that may come up. The tracking system also helps those buying online to track what they purchase and verify its authenticity and originality. These tracking systems would remove the doubts most people have about online businesses.
Creating a system that allows for the straightforward return of goods
Dealing with returned goods and managing refunds are primary challenges for online customers. This has caused a lot of people to shy away from buying and selling online.
Blockchain is transforming how businesses operate. Blockchain handles refunds and returns in an easy, transparent way that allows clients to follow their transactions from start to finish. This results in a more streamlined and effective method for both customers and enterprises.
Payment gateways
A lot of online businesses adopt cryptocurrency as payment for goods and services. It makes it easy for customers with no other option but to use their cards.
Online businesses benefit from incorporating cryptocurrency acceptance as a payment means. Blockchain technology automates the processing, verifying, and confirming payment processes.
Also, companies can use a payment orchestration platform. This technology optimizes payment flows by managing and consolidating multiple payment service providers, currencies, and channels. Such a solution helps to build a seamless payment experience for clients, making processing transactions easier.
Cryptocurrency allows customers to make online payments without disclosing their card details. With just a wallet address, customers can pay for goods and services. Cryptocurrency payment is easier, faster, and borderless.
The case of the payment gateway rejecting a particular debit card is also reduced with cryptocurrency as payment.
Supply chain management
Blockchain technology also helps online businesses track their supply chain. Provenance and traceability are crucial for online businesses. The safety and authenticity of goods are backed on the blockchain. This allows companies to track their products from raw material to the point it gets to customers. Supply chain management is primarily fundamental to online businesses since it's easier to duplicate online products. About 40% of supply chain leaders plan to invest in blockchain.
Walmart uses blockchain to track goods after production till customers receive them. It reduces the chances of counterfeits. Online health services are also using blockchain to deliver a more patient-specific health service than what is obtainable in traditional hospital settings.
Blockchain technology impacts online businesses in several ways
Blockchain is a growing buzzword in the current economy. It's beyond cryptocurrency and cryptocurrency trading.
Blockchain benefits and solutions are countless and are helping businesses reduce the friction in business operations and management.
Modern technology is updating how businesses operate, and online companies are part of the trend. It impacts cuts across helping online brands to get a better understanding of their customers to effectively target them while they allow customers full control of their data.
The technology also applies in supply chain management to track goods from the point of production to when it gets to the end user. Plus, it also impacts the payment gateways of these online businesses.
FAQ
- How does blockchain technology work
Blockchain allows digital information recording and publication but doesn't accept edits. It will enable the record of transactions in an immutable ledger that won't be altered or destroyed. Each block in a blockchain contains information about the marketing, its stamp, and the identity of the individuals involved.
- What's the advantage of blockchain
Blockchain technology presents countless benefits. The main advantage it provides is the security and privacy it offers users. Evaluating the cases of data breaches on the internet, blockchain technology protects user data and ensures that contents provided to users are specific to the user. Blockchain also offers faster and permits borderless transactions.
- What are the disadvantages of blockchain
Blockchain permits the anonymity of individuals. Hence, people will perpetuate crimes and go unidentified. There are also cases of people losing their private keys, leading to permanent loss of funds and wallet access. Blockchain does not also permit data modification after recording, and the contract stands even if there is a mistake in the contract.
- Which businesses use blockchain
According to research by Blockdata, 81 0f the world's top 100 public enterprises use blockchain technology to facilitate their operation. Several companies are incorporating blockchain solutions to deliver wholesome services to customers.
Author's bio
This article was provided by Jennifer Nwokolo who writes content on cryptocurrency and web 3.0. topics.
She loves to read and tell beautiful stories. She is steadily building a community of individuals who love reading great content.
