Without getting too technical, blockchain technology is basically a system of digital record-keeping that’s more secure against deletion and tampering than the systems we’ve been using thus far. Blockchain technology permanently records blocks of information to create a virtual open ledger that’s shared across a peer-to-peer network. None of the data can be edited, altered, or deleted without changing the entire record, which requires the permission of all parties involved.
Blockchain technology is now enabling more efficient, more secure ways of doing business, creating contracts, managing supply chains, making financial transactions, keeping records, and more. And it’s already integral to cryptocurreny (like Bitcoin) systems and transactions.
Now, as this new approach has become more well known and available, there are a number of ways businesses can use blockchain technology to their benefit.
Blockchain Benefits for Businesses
- Businesses can reach new customers by accepting Bitcoin payments. There’s an ever-growing niche of people who actively seek out and support businesses that let them pay using this leading form of virtual currency.
- Blockchain technology creates transparency that facilitates better supply chain management. For example, it offers a reliable window into all the parties involved in supplying your suppliers. For just one example of how this might be relevant, consider a restaurant that advertises itself as 100% organic. It can fairly easily confirm that supplies from its vendors are labeled organic, but with blockchain record-keeping, it can also learn about all the manufacturers and suppliers that its vendors deal with.
- Contracts become more reliable and easier to deal with using blockchain technology. Parties are guaranteed to be aware of all changes, and everyone will always know they have the most current version.
- Businesses can send and receive faster payments with systems based on blockchain technology. These systems streamline processes around invoicing and billing statements. They also greatly improve efficiency with something like getting paid by an insurance company. A small medical practice, for example, can instantly share relevant information with the carrier, get paid almost instantly, and be able to tell the patient what their co-pay and co-insurance amounts would be.
- Hire smarter using digital records stored with blockchain technology. School transcripts, previous employment records, references, and more can all be kept in one convenient location, and are guaranteed to be unmodified by any potential employees looking to make their CV look a little more impressive than it actually is.