Advantages of Blockchain for businesses
There are many advantages of using Blockchain technology. This article will look into 5 important advantages of Blockchain technology. These are:
- Reducing costs,
- Increasing traceability,
- Improving customer experience,
- Verifying ownership and proving identity, and
- Enhancing security.
Blockchain technology has increasingly gained popularity in the past few years. We are seeing financial services and institutions considering to adopt blockchain technology.
Programmers created the Blockchain technology as means of a secure storage system. This storage is hard to hack since each computer within the chain rapidly stores data sent to them. Since each chain within the Blockchain has to pass through encryption, it is hard to decipher the codes all at once. Hence it is very difficult to hack. Moreover, any information passed and verified through the blockchain stays recorded forever. In other words, every transaction processed and recorded through the blockchain cannot be deleted or manipulated. Hence Blockchain is the go-to programme that enhances security.
One of the advantages of Blockchain is reducing costs. Such costs are the company’s and customer’s costs. This is so since Blockchain eliminates the middle-man, thus halving customer expenses. In contrast banks and credit card companies still use the middle-man services. One of these services includes Payment Clearing. This results in such institutions charging higher prices to their customers.
Blockchain is capable of transforming the financial services system. Some of the most important factors in the finance industry are transparency, reduced need for trust, and a robust, immutable structure of data.
How to increase traceability in a blockchain?
The use of blockchain allows business and customers alike to remove the middle-man. By this process, transactions are quicker and easier.
Furthermore, through the use of Blockchain, a business can trace its customers activities easily. Therefore, contrary to what thought, transactions on the chain are not anonymous. As stated above, Blockchain is also secure and efficient, thus provides a better customer experience.
Other businesses distributing loyalty cards to customers are using Blockchain technology to calculate and issuing customers points. By this system, customers can easily trace their points gathered with every purchase and exchange them.
Blockchain technology is increasing its popularity at a steady pace. In addition, blockchain technology will continue to trend the internet, with more businesses understanding the importance of this technology. Just like demand and supply, the more popularity blockchain gains, the more businesses will seek to invest in it. This will eventually bring about, cost reduction, efficient customer satisfaction, identifying ownership of transactions and enhancing security businesses.