Many entities have viewed Bitcoin (BTC) as synonymous with blockchain for far too long. However, it is worth noting that the potential of blockchain technology far outweighs Bitcoin, the world’s first decentralized cryptocurrency. Blockchain has found more use cases outside the core Decentralized Finance (DeFi) revolution.
Blockchain technology can provide businesses with greater automation, security, and transparency, among other benefits. As a decentralized ledger, blockchain provides security, transparency, and immutability to transactions. This article discusses the various ways that blockchain can positively serve businesses, regardless of size or the nature of the industry.
Transparency
Once blockchain is leveraged for a transaction, it becomes available for everyone to view. Such transactions cannot be altered.
This is a method for businesses to emphasize transparency within and between departments. It could also serve the same purpose when dealing with customers, ensuring that all parties maintain integrity.
International Payments Without Hassle
Businesses that allow the use of cryptocurrencies enabled by the blockchain are highly likely to complete frictionless, borderless transactions. This is because such digital currencies are not linked to a centralized entity or an intermediary, leading to faster and lower transaction costs. These businesses do not have to bother converting funds to a foreign currency.
Furthermore, all transactions on the blockchain cannot be changed and are accessible to anyone who wishes to see them. Thus, dealing with foreign vendors and clients is less hassle or friction.
Automation
Blockchain technology involves implementing smart contracts, which run automatically when certain conditions are met. The potential for smart contracts to drive innovation is not limited to any niche. Many Non-Fungible Tokens (NFT) projects utilize smart contracts to automatically collect and distribute royalty payments to the creators.
Ultimately, the goal is that they permit financial institutions to perform instant Know Your Customer (KYC) processes through decentralized identities.
Supply Chain and Logistics
One yet-to-be-tapped utilization of blockchain technology is supply chain management. Very few companies are already driving massive changes in this niche, using blockchain to track the distribution of physical goods. The technology’s unmodifiable feature, as well as the inability to delete transactions, allows for transparent and verifiable recordkeeping.
It even helps customers confirm the authenticity of goods. Luxury brands stand to benefit significantly from this use case.
Healthcare
In the healthcare sector, confidentiality is key. The decentralized identity system, which blockchain technology offers, gives patients control over their data through an encrypted digital wallet. This data can only be available to the patient’s healthcare provider based on their discretion. They can do so once they feel the need to revoke the data.
Aside from concealing sensitive medical data, blockchain technology can ensure the safe transport or tracking of temperature-dependent medications.
In Conclusion
There is an inexhaustible list of use cases for blockchain technology in businesses beyond those mentioned above. This is because the technology is still in its formative years and has the potential to expand rapidly. Traditional financial systems have recently leveraged blockchain to tokenize Real-World Assets (RWA), further suggesting that the use of blockchain is wider than that of DeFi projects.