How Blockchain is Benefitting Corporations

When the common man hears blockchain technology, the first thing they think about is cryptocurrencies like Bitcoin and Ethereum. Although this is an important use of this technology, it’s only a part of it.

There’s a lot more to blockchain technology than cryptocurrency, and it seems like corporations in virtually every industry have discovered this. Blockchain is widely used in different industries because of its advantages, and innovators in these fields are finding more and more uses for the decentralized technology as it advances. 

From banking and finance to healthcare, government services and supply chain management, blockchain can offer different opportunities as corporations include it in their infrastructure. 

Advantages of Blockchain Technology for Any Corporation

• Improved Transparency

One major characteristic of blockchain technology is the fact that the transaction ledger can be open to the public for viewing, which makes it easier to conduct transparent business. This benefit is usually helpful in the banking, finance, insurance coverage and supply chain management industries.

Corporations in these industries can carry out more transparent transactions with their clients or other corporations. Since the transaction ledger is open to everyone, no one can be cheated and it will improve the trust between them. It will also improve accountability and hold the parties involved in the transaction responsible.

With the incorporation of blockchain technology, no one will be motivated to carry out deceitful practices during any transaction. It will improve the integrity of the corporation to its customers and business partners.

• Enhanced Security

One cannot talk about blockchain technology, especially its benefits, without looking at the security aspect. Unlike any other record keeping system, blockchain offers the best and highest security level. This is probably why the use of cryptocurrencies online have become very popular, as they are highly secure and offer anonymity. 

Every new transaction carried out with blockchain technology is encrypted and connected to the previous transaction. Blockchain technology consists of a network of computers which form a block, hence the name, and when it’s added to a ledger, it forms a chain.

It is a complicated network of mathematical numbers that is not only highly difficult if not impossible to hack, but is also impossible to be changed once it has been created. This means that it’s not only secure but also incorruptible. No one can sneak into the transaction ledger to change information which protects the corporation using it from hacking and false data.

With blockchain and its decentralized format, the parties involved in the transaction don’t need to trust each other to complete it. Any corporation, regardless of the industry they work in, will benefit from blockchain security.

• Greater Efficiency

Another benefit that corporations make from blockchain is in the aspect of their efficiency. Blockchain has a decentralized nature which means that during a transaction, there is no need for middlemen to process the payments. This is mostly helpful in fields that require payments like supply chains, real estate, online banking and more.

Unlike the old-school financial services, any financial platform using blockchain technology features peer to peer cross border transfers when using a digital currency. It also allows for quicker transactions which improves efficiency. 

If blockchain technology is used in property management, it offers a unified system of ownership records which is more efficient than the standard recordkeeping system that others use now. There is also the introduction of automatic tenant-landlord agreements with smart contracts powered by blockchain.

• Better Traceability

The final benefit of blockchain on our list is in the aspect of traceability of transactions. Every time a transaction or an exchange is completed on the blockchain ledger, it is recorded and connected to the previous transaction. 

This means that one has a transaction trail to follow in case of auditing, and so one can easily trace where goods or money came from. It makes it easier for corporations to audit their departments, prevent fraud where exchanges happen, and enhance security. It can also be used to confirm the authenticity of the assets or goods that were traded.

In corporations working in the supply chain management, medicine, healthcare and other exchange-related industries, it can trace the supply chain. It can also be helpful for corporations working in the art industry to provide indisputable proof of ownership of some artwork.

How Corporations Can Use Blockchain Technology

Before any corporation starts to incorporate blockchain technology in its infrastructure, there are different factors that must be considered. Thus, it’s important to carry out a strategic evaluation and check if blockchain is possible for the business model. If blockchain technology is implemented in an unstructured manner, it can lead to no returns on the investment and strategic failures.

A corporation can carry out granular assessments which will show them which application at the use-case level they can add blockchain technology too. The application must be identified and the influence of blockchain technology must be evaluated with the particular use cases. As long as a corporation can use the blockchain technology in a right and strategic manner, they can benefit from it.

Blockchain technology can be incorporated in virtually any corporation belonging to a wide range of industries. The banking, finance and insurance industry is leading the world in the use of blockchain, and others are following closely behind. The cryptocurrencies can be converted into the local currencies easily, like bitcoin to naira and can be used in the corporations.

What about the Common Man?

Apart from corporations investing in blockchain technology to enjoy the benefits above, the common man can also invest in this technology. The most common way to invest in blockchain technology is through cryptocurrency.

If you’re interested in investing and benefiting from blockchain, you can start by learning how to buy ethereum in Nigeria, and buy it. You can join a reliable exchange platform like Vertex Market, although this depends on your needs. Then, you can move on to other altcoins.

Apart from cryptocurrency, others invest in blockchain through stocks and startups, but they are more volatile and expensive.

The Move of Blockchain

Blockchain is quickly shifting from being a disruptive technology to being mainstream as it is being adopted by corporations in almost every industry. Ever since businesses saw what they can benefit from adding blockchain in their infrastructure, they have taken steps to do so and stay ahead of the competition.