Blockchain has been a buzzword lately in the banking and financial industries. It has made banking and financial products more secure and a deterrent for fraud. Simply, blockchain is an electronic ledger that stores transactions in blocks (in a chain) on a decentralized server. However, blockchain can store more than numbers; it can also store text. Below are some of the ways blockchain can be used in your business.
- Making Payments — Since blockchain stores transactions, it can also be used for payroll. Each block stores transactions using encryption and each one cannot be altered or deleted upon verification. Blockchain first came on the scene with cryptocurrency, since it is the technology behind it. As cryptocurrency becomes mainstreamed in our daily lives, using it as a form of payment is a great option to offer your employees. If you have remote or international employees, using cryptocurrency will save time and reduce the fees traditional banks charge for international transactions. Thus, using blockchain ensures your employees will get their paychecks on time and without error.
- Martech — This is a relatively new term, similar to fintech, where marketing and technology are combined. Blockchain use in marketing will reduce costs by eliminating middlemen and ensuring an ad reaches its target. The data regarding the ad, such as delivery time, performance and audience information, is stored in a block on an advertising platform. You can go back and check the information at any time without fear of it being altered or deleted. By reducing costs and marketing variables, you will receive a better return per advertising dollar.
- Supply Chain — Blockchain provides transparency since only those in the network can see the transactions. The same idea can be applied to the supply chain to record each step of the manufacturing or shipping process. For example, each part of a product and when it was installed can be recorded on the block, giving a company the vital information needed to keep the business running smoothly. Also, a product’s journey can be tracked in the blockchain instead of other means, such as a radio-frequency identification chip.
- Smart Contracts — There is a new type of contract that is ensures trust between the parties involved and is cost-efficient – a smart contract. What makes it “smart” is that it is an application that is programmed to be completed when the criteria are met. The information is inputted by the buyer and seller, bypassing third parties (e.g. banks). This reduces processing time, fees and paperwork. Since it can be stored on a blockchain (e.g. Ethereum), it is encrypted and cannot be deleted.