Businesses spanning different verticals are gradually scrambling towards advanced technology to cut back on manual errors and boost customer-centricity. In the quest for a business model with less centralisation, the blockchain technology is gaining momentum since its inception in 2008.
Initially, it was perceived to be applied to only the finance sector. However, the technology is gradually making a pace towards other industries, as software developing companies are exploring the untapped application. Industries such as healthcare and logistics are increasingly adopting business models, wherein the blockchain technology can be incorporated to gain convenience to business.
According to a study published by Grand View Research, blockchain technology is estimated to register a CAGR tantamount to 69.4% during 2019-2025, up from a value of US$ 1.6 Bn in 2018. Such a massive rate of adoption is indicative of the attraction that business people are experiencing towards the blockchain technology.
Are you wondering what are the underlying parameters driving businessmen towards this technology?
The decentralised payment model it is.
While cash made the very basis of traditional businesses, cases of frauds were frequent. This encouraged the shift from cash towards digital currency. Payment models such as net banking, credit cards, debit cards, and wallets are ruling the roost business today.
In the future, the decentralised currency will be an accessible transaction mode. However, convenience isn’t the only feature of blockchain technology.
Blockchain Technology Viable Features:
Modern Businesses Rely on Transparent Processes
Transparency isn’t a unique selling proposition for businesses anymore; it is gradually turning into a business need. The future demands transparent business processes so that customers can trust brands.
Blockchain technology consists of a transparent ledger, which is still open in the public domain. As a result, when such a technology is integrated into the payment model, there is no scope for negotiation and customers don’t feel deceived due to dynamic prices.
The feature is likely to remain attractive to the logistics business, which offers bulk contracts. Besides this, the tourism and leisure industry can also remain benefitted, on account of large transactions carried out.
Blockchain Technology Fits into the Concept of Automation
The gap in the current business processes is the time-consuming recruitment procedures that are carried out to hire highly skilled professionals. There is a high investment of time, money, and energy for the hiring process, and yet the attrition rate is enormous.
Blockchain technology is all about productivity. While it becomes tedious to train resources, the technology takes a decentralised approach and removes as many resources as possible. Pre-programmed software and blockchain development services that software development companies offer makes it easy to run a business in an error-free and efficient manner.
This feature would specifically benefit businesses that involve a large number of stakeholders. e-Commerce and packaging businesses can do ideal businesses out of it.
Blockchain Saves your Business from Prying Eyes
Businesses all across the world are embracing digital leap to augment their reach and boost their presence. However, digitalisation has also opened new avenues for cybercrime activities, which are serving as a threat to businesses.
Blockchain technology is synonymous to security. As per its name, the blockchain technology is a block-by-block network of a complex string of numbers that can’t be broken once built. This makes it a secure system to bank on.
The security feature of this technology can be beneficial to banking and finance industry.
Blockchain Technology Helps you Put More into your Pocket
High set-up cost, huge operational costs, and expansion expenditures directly pass on to the overhead cost for a business. With digital business, the overhead cost is relaxed to some extent but it still is yet to lower the high cost of resources.
Blockchain technology takes care of your profit, while you focus on the next line of action. Elimination of third-party from the business model not only makes the system less prone to errors but also helps you save a large sum that would otherwise be used on your resources.
This feature is likely to remain viable to start-ups operating in the food and banking sector.
The Sum and the Substance
Numerous studies are coming to the fore claiming that by 2030, a number of public and private companies will use virtual currency in some form or the other.
And why not?
The core essence of any business is to achieve utmost business efficiency to increase the profit margin. If the technology is applied to the business model with a smart approach, it can make a lucrative hell out of a technology.
While the dissemination of knowledge regarding blockchain technology is limited, it is always better to approach blockchain development companies, who can help you with a cutting-edge blockchain system development.
All the best!