How Blockchain Technology Can Make Your Business Scalable?
Due to its disrupting features, Blockchain is emerging as an alternate technology to bring efficiency and innovation in businesses across the world. After the success of blockchain-based digital currency Bitcoin in the last few years, its benefits are being explored in different industries by innovators and researchers. In the era of the digitally connected world, a business cannot afford to miss the boat to the blockchain revolution. Businesses across the supply chain, financial services, healthcare, medicine, and finance are exploring this new-age technology to transform their business model.
In this article, we will discuss how blockchain technology can make your business scalable.
What is Blockchain Technology?
Blockchain is formed when a network of computers comes to a consensus to create a block. This block is then added to a distributed ledger to form a chain of blocks. Contrary to a traditional centralized server, it is composed of a number of computers or blocks where information is stored, which is immutable and incorruptible, making it safe from hacks and falsified information. The information recorded on this distributed ledger technology cannot be tempered without the consensus on more than 51% of computers in the network, making it reliable technology for businesses.
Since you are now familiar with blockchain technology, let’s have a look at how blockchain technology can make your business scalable.
Trust is one of the most talked-about features of Blockchain. The decentralized nature of recoding transactions instills the trait of trust between parties using this technology.
The blockchain-based technology Blockchi helps businesses to build trust among their stakeholders, partners, and customers. Blockchi entails tagging products with an NFT-enabled QR code, which helps the manufacturers and stakeholders to keep an eye on the movement of goods while ensuring zero instances of induction of counterfeit products.
Let us understand with an example. Suppose a shampoo manufacturer supplies 10,000 bottles of shampoo across the country in the month of June 2022. Next week, the manufacturer asks all his wholesalers and distributers to recall all 10,000 units of shampoo due to some regulatory issues. Subsequently, the manufacturer received 10,500 bottles of shampoo, which is 500 more than what he supplied. After the investigation, the manufacturer found that 500 were counterfeit bottles sold to his wholesalers and distributors.
Had these products been tagged with a unique QR code, the counterfeiter could not have replicated his product and the manufacturer would have saved a lot of money in the supply chain.
Improve Traceability and Audibility
Whenever a transaction is recorded on the blockchain, an audit system gets activated to track and trace the movement of goods from source to destination. The geo-tagging and flagging mechanism integrated with blockchain-based intelligence business software keep the manufacturer updated with the real-time location of the inventory and also raises alarm in case of any unauthorized activity.
In the above-given example, if the shampoo manufacturer had used blockchain-based QR code tagging he would have not only traced the source of counterfeiting but stopped it from spreading. Like this, the customer loyalty program by Blokchi helps the manufacturers in tracking the supply chain from manufacturer to distributor.
Visibility and Transparency
Transparency is one of the most cited features of blockchain that traditional technologies could not keep up with. Its publicly shared ledger keeps all the people associated with the business updated with transactions carried out at any location or time. This geo-tagged QR code tracks the origin of the items to confirm their legitimacy and sends information to the manufacturer about any counterfeit product.
It brings transparency and accountability across the supply cycle and wins customers’ trust, which subsequently helps in the company’s growth.
Speed and Efficiency
The cutting-edge technology is known to remove the time-consuming process and bring speed and efficiency in the business. Blockchain technology streamlines and automates the supply chain process, by removing manual processes. It eliminates the middlemen and intermediaries from the supply chain to fast-track the transactions through its peer-to-peer cross-border transfer. The blockchain-based distributed single ledger also helps businesses to get rid of cluttered multiple ledgers, that consume a lot of efficiency and resources.
Various costs incurred in managing the supply chain can also be reduced drastically by introducing blockchain business intelligence software in your business. It automates the process by eliminating middlemen, vendors, and third-party providers from the chain, and limits human error. By bringing efficiency in processing transactions and simplifying reporting and auditing process, blockchain-based business solutions assist in reducing the cost of manual tasks.
Robust Security and Privacy
Since the data is stored across a network of computers on blockchain, instead of a centralized server, hacking the whole network of computers becomes near impossible. Encryption of each translation and linking to the previous transaction makes it far more secure than traditional recording-keeping systems. Data cannot be changed on the blockchain without the consensus of the entire network, even a single change requires alteration of all subsequent records, which makes it the safest option for business to manage their supply chain.
As a business owner, with this article, you must have enhanced your understanding of how blockchain technology can make your business scalable. With the business community adopting the blockchain in their business at an unimaginable pace, we recommend you to explore more about Blockchi before taking an intelligent business decision.