Over the last few years, the use of blockchain technology has gained currency especially with the increasing popularity of Bitcoin, says ICObuffer. It exists in the form of an electronic ledger that is used to connect different parties in a network of integrity and trust. Because of its secure nature, blockchain has been adapted in a number of industries including the following:
Supply Chain Management
In supply chain management, blockchain management can be used for increased cost-effectiveness and traceability. It makes it easier for the tracking of the origin of goods, movement, and quantity. It is, therefore, possible to have an improvement in transparency. Besides that, there is the greater simplification in business processes including payments, assurance in the production process, and transfer of ownership.
In the supply chain, blockchain is used to trace the origin of irregularities detected at any particular point. People in business have an easier way of investigating and executing the requisite actions. For example, blockchain can be used to track batch information, origin, and other details required for safety and quality assurance.
Transactions recorded through blockchain technology rarely reflect any form of human error. It is just not possible to tamper with the data in any way. As the records are transferred from one person to another, they must go through a continuous verification process. The records are not just accurate but also one with the highest traceability levels when it comes to audit.
Blockchain also makes the accounting process more efficient in its entirety. Businesses operating together don’t need to maintain separate records. That’s because it is possible to have a single register, jointly. The financial information of a company also as greater integrity.
There have been discussions around the use of blockchain technology for trading commodities and even securities. It is all due to the open and reliable way that blockchain systems operate. In Australia, the stock exchange is already planning a switch to a system powered by blockchain.
Energy utility bills is a huge issue for most businesses. While many people pay for energy consumed without asking how the bills came about, others want to know the details. It is now possible to track the usage of energy in the home through blockchain enabled solutions. The tracking of clean energy has also been made easier through blockchain. It is much easier than using tradable certificates to track renewable energy.
Entering into contracts the traditional way can impede growth in business when it comes to the firms that consistently processing signed documents. Blockchain enables smart contracts which are automatically signed, validated, and enforced contracts. You no longer have to work with mediators thus saving you money and time. There are a number of blockchain solutions that offer stand-alone smart contracts working in tandem with internal cryptocurrencies. Businesses can use this technology to consolidate all their operations into one platform. That allows them to provide integrated services without divulging too much information to outsiders.
Since blockchain technology is only emerging, it is expected that its application in business will increase with time.