Everything Businesses Need to Know About Blockchain Technology and Its Benefits for Them

29 Jan

Very often when people hear about blockchain technology, they immediately make a connection to cryptocurrency. But blockchain is not only about that.

In fact, the scope of blockchain technology extends much beyond than just its application in cryptocurrency. It is a technology that can be used by enterprises app development for the various business related benefits that it is capable of offering. To understand how blockchain development can be of value to businesses, we first need to understand the true meaning of blockchain technology.

What is Blockchain Technology?

Blockchain is nothing but a shared digital log or ledger of transactions. The structure of this ledger is such that the transaction records contained within the ledger are all connected with each other in the form of a chain. So basically, a blockchain refers to blocks or pieces of digital information that are contained within a shared database. What’s unique about this digital ledger is that it’s decentralized and distributed in nature. A new record can be added to the blockchain only after it has been validated by a peer-to-peer network of computer systems. The decentralized and distributed nature of blockchain makes it nearly impossible to manipulate or alter the records in any way. Taking care of the security of the transaction records in a blockchain is the technique of cryptography, which is an advanced and reliable mechanism of security.

The Use of Blockchain Technology in Business

By now you know the fundamentals of what blockchain actually is. You can see that the nature of blockchain technology is such that it finds use not only in managing the cryptocurrency related transactions, but also in a wide range of business activities. Here we will take a look at some of the key ways in which blockchain has the potential to positively influence businesses:

1. Ensuring Quality Standards in Products

For any business that is manufacturing products, quality assurance is going to be a critical process. QA is the process where the product will be assessed to check if it meets the required quality standards. The transparency offered by the blockchain technology can very well be leveraged in the QA process. Whenever any defect or issue is detected in the product, it will become easy to trace the problem to the root cause. This will allow the responsible people in the company to take necessary remedial actions in time to control the issue.

Read the blog- How Can AI & Blockchain Be Employed To Enhance Mobile UX

2. Providing Enhanced Security for Data

Data safety and security is a point of concern for all types of businesses. They all fear the risk of cyber attacks that can threaten the security of confidential and critical business data. Blockchain technology comes to the rescue here, by providing a highly secure way to store business data. In a blockchain model, data is stored in a highly decentralized way. This means no one system will have all of the data in one place. Rather the data will be stored in a distributed manner across several nodes. Data stored in a distributed network like this would be quite safe.

3. Maintaining Financial and Accounting Related Information

Blockchain development can offer a wonderful way to maintain the accounting and financial related records for a business. Adopting blockchain for this purpose will ensure a number of benefits. There will remain no room for human error, hence the accounting information recorded will be highly accurate. The blockchain model will also prevent any malicious manipulation of the data. The accounting information will remain traceable too at any point of time.

4. Simplifying Record Maintenance and Paperwork

In addition to ensuring security for data, blockchain also offers a streamlined way to store documents. Businesses often have to deal with a long trail of records and paperwork. It can get pretty difficult keeping a track of this trail and getting a sense of the actions that have taken place and when. Additionally, there is also the need to ensure that the paperwork and records are always updated to reflect the most recent transaction. Using blockchain for maintaining records and paperwork will provide a secure, transparent, and efficient way for managing all types of documents, whether it is contracts, receipts, proposals, or anything else.

5. Keeping an Eye on the Entire Supply Chain

The transparency and traceability facilitated by blockchain is something that can come in handy not just in quality assurance, but also for closely regulating the entire supply chain itself. Any business where there exists a supply chain governing the products, it can become laborious to account for each and every step that’s taking place within the supply chain. Blockchain can be used to gain more control and visibility into the supply chain in a way that’s cost-efficient. It can be an effective way to trace the products as they cross each stage of the supply chain, from the point of their origin all the way to their destination.

Conclusion

These were some of the many applications and benefits of blockchain technology in the context of a business environment. Blockchain would be a right fit for any business that is aiming to become more efficient and secure. It is also a great option to consider if the business is in the process of adopting enterprise mobility solutions and mobilizing its operations. In fact, blockchain is something that would be a great addition to all types of enterprise app development, given the extensive array of business related benefits that it offers.

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