The arrival of bitcoin in 2009 changed blockchain technology from a little-known theory to technology with real-world use cases across all industries. Bitcoin demonstrated that the technology could decentralize finance. Since then, many industries have been looking for ways to enter into decentralized tech and eliminate the challenges of traditional business models.
Blockchain’s value arises from its ability to allow parties to share data faster and in a more secure environment without either party having to facilitate the transaction or safeguard the data. That means also eliminating third parties or intermediaries to help complete a transaction. In fact, businesses can benefit more when they adopt blockchain enterprise or simply blockchain-based applications.
Challenges in Traditional Business Model
In adopting blockchain, businesses are looking for a solution for these challenges present in the traditional business models:
- Lack of Autonomy: The traditional business model lacks transparency and trust in transactions where parties in one process are unfamiliar with the information in another process. However, this is different when using Ethereum or bitcoin smart contracts (read on to find out more about smart contracts).
- Low speed: Because of the autonomy and processes acting like different entities in a process, the operation speed is slowed significantly. Teams will gather and analyze the same data another team has worked on. The process is even slower when the business needs to involve an intermediary.
- Payment issues: When a business needs to transact across the globe on different timezones and currencies, it faces numerous challenges, making the entire process complex and costlier. Blockchain breaks those barriers and eases payments at any time and anywhere.
- Low security: the traditional business ecosystem is quite vulnerable to hacks, attacks, manipulation, and human error.
How Blockchain Deals with Business Challenges
Below are ways enterprise blockchain can benefit your business model.
Faster and cheaper payments
Payments on the blockchain are quicker and cheaper than other modes of payment, especially when making international payments. If you have international teams —something that has become commonplace with businesses hiring remote workers globally, paying salaries and wages in cryptocurrency is easier. Besides, you don’t need to pay extra fees like other international and local money transfer options or wait for a specific time to effect payment.
Improving contract transactions
Smart contracts are code-based contracts that self-execute when parties meet the terms in the code, existing on a decentralized blockchain network. The contract only executes when all parties agree with the terms set on an if/then condition. If one party doesn’t agree to the terms, the contract won’t execute or continue, ensuring that parties maintain the status quo.
The self-automated contract has no interference from outsiders or third parties and has no downtime. But how does this help your business transactions? It ensures that you get paid with no delays when you deliver your end of the bargain. In addition, if the other party fails to fulfill their role or backs out mid-contract, your goods are returned to you.
This means you won’t need any fee-charging and time-consuming intermediary to ensure the contract completes or settle disputes. Smart contracts are excellent tools for saving you time, money, and possible losses in fraudulent deals. You can deal with parties you don’t know or trust, but be safe. A smart contract development company can help you develop a code for your business contracts.
Improve your hiring process
Hiring is a critical process in a business as it determines how strong, innovative, efficient, and productive your business will be. It’s therefore crucial that you pick the right fit for your business, professionally and culturally. But hiring the right team takes a lot of time, effort, research, and resources.
Sill, there is a chance you may end up with the wrong hire, forcing you to undertake the process again. Blockchain can simplify the entire process for you and make it more effective. Job candidates often fabricate their resumes to make them look more qualified than they are in reality. This can mislead your hiring process. However, blockchain helps you verify information stored in a digital ledger about candidates, their academics, awards, and employment history.
So, next time you encounter an impressive resume, you only need to confirm the authenticity of their qualifications. When you have trusted and transparent data, you eliminate the hurdles in the hiring process and get your right fit quicker. The same goes about diplomas and other school or university credentials.
Higher transaction security
Another significant benefit of blockchain is its improved security measures on transactions. These measures are more complex, taking the risk of hacking lower. The transparency and decentralized nature of the technology allow users to store, read, and verify information in the network. Decentralization happens to be one of the significant differences between the traditional and blockchain business models, with conventional models being centralized under a central governing authority.
Higher customer engagement
Engaging your customers in the right way is crucial for the improved performance of your marketing campaigns and enhanced conversions and sales. Blockchain opens an avenue for you to achieve that by collecting and analyzing real-time customer data. That helps you identify areas of improvement in your marketing campaigns and the best ways to engage your audiences.
You can do this by adopting Blockchain as a Service (BaaS) for your business and integrating blockchain into your customer engagement platforms.
Blockchain can improve your business processes in the various ways discussed above that are far from being exhaustive. To get you started with enterprise blockchain and gain these benefits, consult with a reputable blockchain company to understand the areas in which the technology would benefit you most.