8 Benefits of Blockchain to Industries Away From Cryptocurrency
Everybody who can read or write knows about cryptocurrency and bitcoin to be precise. There is this buzz going over crypto and there are the records broken by bitcoin. Blockchain was developed to help facilitate cryptocurrency but there are also benefits of blockchain to industries away from cryptocurrency.
To bring it home, crypto has made a lot of people very rich. Think about it; in 2011, the price of bitcoin was $1. Fast forward to 2018; it was sold for over $15,000 though it has come down to almost $8000 in recent months which is still a massive increase from what it was.
You may not be an active investor in bitcoins or any other cryptocurrency, that is okay and totally your choice. All entrepreneurs, however, must appreciate the technology that makes bitcoin possible and feasible. We are talking about the blockchain.
According to Wikipedia, a blockchain is a continuously growing list of records called blocks which are linked and secured using cryptography.
In simple terms, it is a virtual, public ledger that records everything in a secure and transparent manner. The fundamental difference between blockchain and traditional banks is that while traditional banks facilitate transactions with traditional currencies, blockchain allows the free transfer of cryptocurrency through a decentralized environment.
We will discuss the major benefits of blockchain to industries away from cryptocurrency.
The Benefits Of Blockchain To Industries Away From Cryptocurrency
Supply chain management
One of the benefits of blockchain to industries away from cryptocurrency is the supply chain management. What it means is that the blockchain technology gives us the benefits of traceability and cost-effectiveness.
When we want to track the movement of goods, their origin, quantity and other things about a good, we can use blockchain. This simplifies the processes of doing things such as ownership transfer, production process assurance, and payments.
It provides quality assurance
The provision of quality assurance and by extension, integrity is one of the benefits of blockchain to industries away from cryptocurrency. When there is an irregularity in the supply chain, the blockchain technology can help locate its point of origin.
As a result of this, it has become easier for businesses to carry out investigations and execute the necessary actions.
The blockchain technology eliminates the possibility of error when recording transactions. This is because records are verified each time they are passed on from one blockchain node to the next. More importantly, it also leaves a highly traceable audit trail.
With blockchain, the whole process of accounting achieves more efficiency and effectiveness on a foundational level. You can keep a single, joint register and guarantee the integrity of your company.
Through a blockchain contract, smart contracts or agreements can be validated automatically, signed and enforced. This has led to the reduction of the bottleneck that comes with time-consuming contracts that affect business growth. This is because the blockchain technology removes the need for mediators and resultantly, saves the company time and money.
Voting is also one of the benefits of blockchain to industries away from cryptocurrency. In recent times, opportunities that will help in government elections are being pursued. When it will be finalized, it will significantly reduce the likelihood of electoral malpractices that is still prevalent despite the use of other electronic voting systems. It has been tested in Moscow using their local elections.
It can also be used in the shareholders voting. It has been done by NASDAQ. They used their blockchain technology and local digits identification solutions. It saw success.
The stock exchange will benefit from the blockchain technology. This is the result of the notion of using blockchain technology for securities and commodities trading which has been making headlines in recent times. Stock exchanges consider stock exchanges as the next big leap forward.
This is not a speculation. In very empirical terms, Australia’s stock exchange is already dead set on switching to a blockchain-powered system for their operations, which is designed by the blockchain startup Digital Asset Holdings.
You can track your energy consumption using the blockchain technology. Instead of scratching your head and wondering where your energy expenditure is emanating from, you can track your usage using the technology.
Peer-to-peer global transactions
One can consider as a core advantage of cryptocurrency the possibility of fast, secure and cheap transfer of funds across the world. Of course, there are other mediums for transferring funds before the development of bitcoin but they have restrictions and limitations on minimum transfer.
This is where the blockchain technology can be of immense help. They are more secure for the transfer of funds and they guarantee users more freedom when it comes to the movement of funds.
There is no doubt that the blockchain technology is making giant strides in other industries other than cryptocurrency. These benefits of blockchain away from cryptocurrency bear witness to the above fact.