Blockchain technology is gaining foothold in the business world. It is transforming the ways in which consumers and marketers interact and the manner in which companies communicate with each other, while streamlining business flows and improving privacy and security of businesses.
Blockchain technology is providing new digital solutions to a multitude of problems faced by SMEs. The decentralized nature of the blockchain ledger has enabled it to become applicable across a range of business functions and verticals with relative ease.
Here are some business verticals in which blockchain technology is transforming processes and driving value to create a reliable, efficient and sustainable organisation-
1. Finance– Blockchain technology has made it easier to exchange money across borders. Many obstacles exist to prevent parties from sending money across borders.
Banks charge exorbitant fees for international transfers while government monitor money flows in and out of their jurisdiction.
In such a scenario, blockchain technology is providing avenues to SMEs to enter the global market by making financial transactions faster and cheaper. It relies on a mining system to confirm transactions between sending and receiving parties, ruling out the possibility of fraudulent transactions.
2. Supply Chain Management– Under globally integrated economies, supply chain management is becoming sophisticated and data flows are becoming more intertwined.
Application of blockchain technology is enabling businesses and supply chain stakeholders to execute transactions efficiently and ensure product quality through every step of the supply chain.
As products and goods change hands throughout the chain, transactional data needs to be recorded and approved. Blockchain technology enables all the transactional data to be stored in a distributed ledger that anyone along the supply can access.
It is, thus, a significant enabler for supply chain and is leading to more efficiency, transparency, and reliability for all stakeholders.
3. Real Estate- Real estate transactions involve gargantuan data being exchanged between brokers, realtors, banks and buyers. Blockchain’s decentralized ledger stores land records ensuring their validity, increasing transparency and reducing the risk of fraudulent activity.
Blockchain technology also benefits real estate through smart contracts. These enable buyers to purchase property quickly and easily than ever before, eliminating the need to involve third parties along the way.
Smart contracts facilitate the entire escrow service on behalf of both buyer and seller. With smart contracts, when all conditions are met, the agreement is executed- payment is released to the seller and property rights are released to the buyer, reducing the time and money involved in processing of the transaction.
Blockchain technology is set to be a game-changer in the business world in the coming days. As it gains more stability, new ways of conducting business operations will emerge which the SMEs can leverage. Blockchain, thus, represents a rising tide and the boat that reaches the swell first will be the first to succeed.