By Rohan A T
The entire world has been in the process of digitization since the late 60’s and the global economy has been growing leaps and bounds owing to this trend. One technology that has been a massive hit over the past couple of years is blockchain technology. Simply defined, blockchain is a unique technological innovation that helps to underpin digital currencies such as Ethereum, and Bitcoin. Blockchain for businesses allows digital information to be distributed and this information will not be copied. Also, this information is stored and constantly updated so the information remains accurate and relevant. Blockchain business opportunities are immense and the proper use of the technology can result as a major advantage for businesses. Now let’s look at some of the important blockchain applications. Business applications of blockchain are relevant in the modern era and companies can use the blockchain technology to improve their operational efficiencies and growth potential.
1. Allowing Smart Contracts: “Smart Contracts” maybe a relatively new term for the majority. This term was coined back in 1993 and only in 2013 people started giving importance to it after the introduction of the Ethereum project. This is a project in which the applications will run as per it is programmed without any deviation or interference. With the help of blockchain technology, companies can use smart contracts to sidestep regulations and lower the costs of even the most common financial transactions. The technology will also help companies to create unbreakable contracts.
2. Employee Payments: The fact that blockchain has its root in crypto currency is true. So, it can be used as a tool to compensate your employees. Industry experts have said that if your are having international workers on your payroll, crypto currency can be used and it will be a huge cost saver. Another advantage of adopting this method is that it can even help to reduce the time of the transaction for both the employer and employees.
3. Tracking Digital Transactions: Another key advantage of blockchain technology is that it allows companies to track their digital transactions step by step. The technology can also be used to create auditable records of the transactions that can be useful for all the stakeholders.
Blockchain technology can also have varied influence and impact on the operations and performance of the company on varied levels. Some of the effects of blockchain on business are:
1. Improvements in business accounting: One sure shot area where companies can take advantage of the blockchain technology is accounting. Traditional accounting is very complex and hard to grasp but the proper allocation of blockchain technology can solve all the various problems that a company may face while doing their accounts.
2. Modernizing Traditional HR: Human resources are one of the most important facets of business operations. The HR professionals of a company have got the most important job recruiting the ideal candidate for the company. A recent study shows that blockchain technology can be used to improve the efficiency of the recruiting process. Blockchain will allow companies to compare the credentials of the candidates with that of the existing employees and take appropriate decisions.
3. Effective Marketing Strategies: One important issue that the advertisers are going to face in the coming years is the rise of fraudulent activities. Blockchain technology will allow advertisers to deal with this problem by reducing the ‘click frauds’ significantly and through that helping advertisers to get the best results from their advertising campaigns. This will in turn help to create better marketing strategies.
4. Improving the Legal Aspects: Now, logical arguments and communications skills are not enough to stay relevant in this world for legal practitioners. To be competitive in this modern era, being technologically literate is a must for them. One can use blockchain technology which is a pathway to unparalleled amount of relevant data that can be used by law firms to solve their clients’ cases and business disputes directly and efficiently.
The business world has seen various technological innovations penetrating the market and getting redundant within a couple of years. Blockchain cannot be seen as such and this technology is here to stay for a long time. For companies who are looking to incorporate cutting edge technologies to leverage their growth opportunities, blockchain is the one for you.