Why is Blockchain Technology Good for Your Business? Know All Advantages

Is using blockchain technology suitable for your business? What advantages can companies get from decentralized technology?

Businesses are facing multiple challenges and are looking for the best solution.

Since the introduction of blockchain, many things have improved. Be it implementing advanced payment solutions, decentralized cloud storage, smart contracts or tokenization of data storage. 

Decentralization has multiple benefits that you can check, but first, let’s know the three major benefits of blockchain technology that any business can take. 

Top three advantages of blockchain technology

Before knowing all the benefits, understand blockchain and how it works.

Here is how blockchain can help you get positive results in your business:

1. Trust

Blockchain helps create trust between multiple parties. Partners can create a business agreement involving crypto transactions, data sharing, etc.

The blockchain requires certain conditions to execute its contract; therefore, it dramatically relieves business owners and organizations from setting contracts with their business partners.

2. Improved security and privacy

Users create an immutable record of transactions with end-to-end encryption. Hence, helping them avoid fraud and other unauthorized activities.

Even more, the data on the blockchain is stored across multiple computer networks, making it impossible for hackers to modify or steal the user’s data.

3. Decentralized structure

The decentralized structure of blockchain helps businesses avoid dependence on a single authority, such as social media and app distribution platforms. 

Decentralization gives companies better freedom to operate their business. 

Additional benefits of blockchain technology

Other than the above three, the blockchain technology offers an array of benefits penned below

1. Cost reduction

Blockchain technology helps organizations save costs in their business operations by reducing manual tasks and automation in tracing transactions, smart contracts, and other agreements.

Also, businesses cut costs by eliminating third-party providers and other intermediaries with the help of blockchain.

2. Better visibility and traceability

Many big businesses, such as Walmart, use blockchain technology to manage their inventory and keep merchandise records.

Blockchain provides excellent transparency to businesses to get a complete view of their business structure—great transparency help in managing businesses effectively.

3. Immutability

All the transactions and records stored on the blockchain are immutable, and their immutable nature makes all transactions and other records impossible to alter. 

All the record stores on the blockchain are permanent. The immutability nature of blockchain provides many benefits, such as better security, privacy, etc.

4. Speed

Using blockchain helps businesses to implement fast processing of different activities in the industry. The speed provided by blockchains depends on their structure, such as their block size and network traffic. 

Here is an example:  Walmart has used blockchain technology to trace the source of sliced mango in seconds. While previously, the business took seven days to perform the same process manually. 

5. Individual data controlling

Even after having the immutable nature of blockchain, the technology allows the data owner to control their data.

Blockchain users can decide what kind and portion of data they want to share.

6. Tokenization

Blockchain helps businesses ease the transaction process of different assets and documents. 

The tokenization process is when the value of assets converts into a digital token. Later that token can be stored on the blockchain and shared with other blockchain users.

7. Innovation

Blockchain can solve various intractable problems in different businesses. 

Company recruiters use blockchain technology to verify job applicant resumes helping them to avoid being misled by hiring the wrong candidates (based on their fake degrees and job experience). 

Blockchain allows universities to put their graduates’ data and relevant information on the blockchain. Universities’ data on blockchain helps company recruiters access each application’s graduation data during the interview process.

8. Automation

Blockchain brings business automation, providing multiple advantages such as better efficiency and faster processing. Also, automation helps blockchain to execute smart contracts and transactions.   

Many industries are already using blockchain in their business. Let’s check all these different sectors.   

Which industries are taking advantage of blockchain?

Here’s the list of industries using decentralization technology:

1. Automotive 

There is a use of software and other digital products on a massive scale in automobiles to keep their business organized and ahead of competitors. Moreover, many automobile businesses prefer blockchains to add additional benefits of different technology to their business.

Using blockchain in automobiles helps in many ways, such as

• Enabling cashless payments through blockchain-based e-wallets on tolls.
• Making secure networks for connecting all suppliers, component vendors, and others using blockchain technology
• Keeping customers’ records safe and secure. 

2. Games

Blockchain has improved the gaming experience for players in different ways. Players can purchase assets and other items safely through the help of cryptocurrencies in the specific blockchain. 

Here’s how blockchain is improving the gaming sector:

• The games can tokenize their different game assets, such as characters, weapons, costumes, and others in NFTs.
• Blockchain helps games to create their unique virtual world by enabling different techniques such as metaverse, crypto tokens, dApps, crypto wallets, etc. 

3. Healthcare

Like all other industries, the blockchain industry is aiding in improving healthcare services. From securing patient’s data to research papers to medical records, technology is shaping the future of healthcare.

Know how blockchain is helping healthcare industries:

• Hospitals and clinics can securely share patient data with laboratories, pharmacists, and other hospitals. 
• Decentralized networks provide a great solution to connect all health organizations in one place to improve communication and management.
• Using cryptocurrency helps healthcare remove middlemen, such as payment gateways, to cut transaction costs. 

4. Education

Colleges, universities, and schools are using blockchain technology massively for different purposes, such as data records, research, the mutual network for storing and sharing data, etc. Understand how blockchains are helping the education sector:

• Universities can easily manage student records. 
• Ease in distributing certificates and diplomas to students
• File and data storage at less cost with better security. 

But which blockchain will be suitable for my business? Consider the following blockchains.

Best blockchains for your business

Check the list of blockchains you can choose from. Also, know the advantage of using each blockchain.

1. Ethereum

Ethereum is a leading platform for project development in different industries. Many businesses already prefer this platform to take advantage of blockchain for their business.

Also, ethereum has a large community of developers. Massive members will help you to resolve any issues or challenges that you can face at the time of implementing the Ethereum blockchain.

Ethereum provides well-defined guidelines and tutorials for its blockchain. The massive community and availability of tutorials can help your developer to implement blockchain features quickly.

You can choose Ethereum if you want the following benefits: 

• Ethereum is free to set up.
• Ethereum uses “Solidity” (having a large developers community)
• If you want a well-structured guideline for using blockchain.

2. Hyperledger Fabric

Hyperledger Fabric’s developers can use JavaScript language for this blockchain. Therefore, developers can easily integrate this blockchain or can create decentralized products for your business.

However, no token system is available, so the company wanting to implement a crypto-based payment feature should avoid this blockchain. Still, you can create your token with chain code by using hyperledger fabric.

Use hyperledger fabric if you want the following advantages

• Open source and free to use
• Supported by IBM
• Reliable performance 
• Plugin component support
• If you’re going to develop a program in different languages

3. Stellar

The blockchain is easier and simple to use compared to Ethereum. Moreover, using stellar will be economical as it offers low-cost transactions.

However, using Stellar is unsuitable for some complex agreements. Also, these blockchains provide excellent security through its Stellar consensus protocol.

Use Stellar if you want the following benefits for your business:

• A blockchain suitable for ICOs.
• Inexpensive compared to other blockchains.
• A decentralized network that is easy to use
• Low development cost 
• Great speed and security

4. Nem

Java is the coding language that developers can use for this decentralized network. Blockchain developers and others will find it easier to employ this decentralized platform.

The blockchain provides an excellent solution for managing assets and data at low investment. The blockchain has its exclusive currency, XET, which is used mainly for trading, not as a payment medium.

However, the blockchain provides an easy way for companies to create crypto coins and tokens. All the coins and tokens made from this blockchain are compatible with different trading apps and wallets available in the Nem blockchain.

This blockchain has less development community and provides only a few development tools, which is its drawback.

You can prefer the Nem blockchain if you want the following advantages:

• To use Java language for blockchain
• The blockchain has better scalability compared to other blockchains
• Excellent performance in speed and great scalability potential
• A blockchain that doesn’t require any blockchain-specific programming language.

5. Waves

This blockchain requires less technical knowledge, making it suitable for ICOs and crowd sales.

You can use this blockchain for these advantages:

• A blockchain ideal for ICOs, property transfer, and crowd sales
• Creating tokens in this location requires less technical knowledge
• This blockchain can help you make your token in less time

But here are a few challenges that you must be aware that you may face while integrating blockchain technology in your business.

Challenges of implementing blockchain technology

Know the major challenges of using blockchain for your business:

1. No regulation

The absence of regulation is an organization’s main challenge while implementing blockchain technology. No one knows in which way the government will bring law to this technology.

2. Lack of blockchain developers

Hiring a blockchain developer for your team will be difficult because there is a limited number of blockchain developers and their high demand in the market. Also, even if you find the right candidate, you may have to pay a large salary because of the value of their skills.

3. High energy consumption

Many blockchain technologies, such as bitcoin and others, use a proof of work model for their network. However, the proof of work requires high computational power that consumes massive power.

So, what is the best way to get started with blockchain?

Blockchain technology has many advantages and some challenges. Still, many sectors have adopted blockchain technology on a massive scale. 

Since blockchain technology is new to the market, business owners find it hard to implement it in their businesses.

If you wonder where you can find blockchain developers, in that case, your search for the best developers ends here. 

Contact Idea Usher to know how our blockchain developers can help you to integrate blockchain technology.

So, you can get all the advantages of decentralized technology for your business.

E-mail: [email protected]

Phone Numbers: (+91) 946 340 7140, (+91) 859 140 7140 and (+1) 732 962 4560

FAQ

1. What are the three advantages of blockchain technology?

Here are the three benefits of the blockchain:

• Better security 
• Great transparency
• Automation

2. How can blockchain protect data?

Blockchain’s immutable nature makes it tough to alter the data records on their networks. Also, hackers can’t know the location of data because each blockchain uses multiple computers for file hosting & sharing worldwide. 

3. What is the primary purpose of blockchain?

Blockchain aims to securely provide a medium for data storage and distribution by restricting data modification once uploaded on blockchain networks.