The blockchain and cryptocurrency domain has revolutionized the way several sectors around the world work. The growth of the sector has been massive in recent years as it extended its roots into various spectrums that were not even thought of. Blockchain technology has given rise to stuff like cryptocurrencies, NFT marketplaces, DeFi technology, and even identity management tools. All of these have had a notable influence on the operations of the different sectors around the globe.
The advancing blockchain technology has resulted in an increase in queries like “how to implement blockchain in business?” Therefore, our article is aimed at providing an answer to it. This is because the entire world is operating on the business model and the use of blockchain in it has been rapidly increasing. However, there are some who do not know much about the potential ways of blockchain implementation in business. But hey, before venturing out into the actual answer to the aforementioned question, let’s first know what is blockchain so that the understanding of the matter that comes next is aided.
What Is Blockchain?
Blockchain is defined as a decentralized system that operates on a Distributed Ledger Technology (DLT). The digital ledger system on which it is based keeps a track of the cryptocurrency transactions that take place using the technology. Here, the cryptocurrency domain acquires the authority to work on its own without the interference of a third party. There are two generations of this technology, the first that focuses entirely on cryptocurrencies, and the second that gave rise to smart contracts, NFTs, etc. Both of these versions or generations as people say can be used when we consider the question of how to implement blockchain in business arises.
Now, when the nuance of this technology is clear, let us dive into the answer to the question that we have been holding on to for a while.
How To Implement Blockchain In Business?
Blockchain applications in business are far beyond one’s expectations. The technology is not only harnessed to maintain the records of a business but also is a source of income if the integration of crypto in business payments is considered. Today, the number of businesses accepting cryptocurrency has fairly increased. In addition, the implementation of smart contracts, dependency on NFTs, and the usage of blockchain in supply chains have seen a rapid increase as well. But are these the only blockchain potential uses? The answer is No! Read further to know about these uses and where else businesses can implement the technology to enhance their operations.
Why do you think the number of businesses accepting cryptocurrency is increasing? The answer to that is the fast and secure mode of transaction that the blockchain and cryptocurrency domain enable. The businesses have adopted such modes of payments to upscale the way their business runs and this is why most multinational companies have been promoting crypto as a payment option.
Also, in the case of credit or debit cards, the transferred amount may take a day or two to reflect on your account whereas cryptocurrencies can be transferred instantly and easily. Moreover, the transactions would be private and third-party financial institutions such as banks would not have to interfere and make the process longer. Also, the demand for crypto has been increasing in recent times and has led to a spurt in demand for crypto payments by investors and enthusiasts in the domain. So, companies that deny doing so might not be able to survive the drastic changes in the domain.
Another perk of transacting crypto is that the transaction fees on most of the crypto exchange platforms are less, especially for Bitcoin (BTC), the largest digital currency. Therefore, businesses accepting cryptocurrency have promoted this mode to save the fees on conventional modes of payment. Further, the value of cryptocurrencies is not fixed and might increase once you acquire them, which is a golden opportunity for business enterprises around the world. However, this is also a drawback since if the coin’s value decreases, the company has to bear the brunt of it.
Traceability Of Supply Chain
The usage of blockchain in tracing the supply chain has been rising lately. This is due to the fact that it does not make the errors that a manual way of working would have resulted in as it is a complicated process. Blockchain has made it easier to maintain the track records of a company’s supply chain for a transparent outlook of the same.
Due to the third-party authentication and verification process, the technology is able to upscale the way supply chain records are maintained. Also, the need for manual labor is decreased, reducing pressure on the human resources of the company. Such usage of blockchain for small business enterprises is not advised due to the supply chain not being very complex. Therefore, it doesn’t require advanced technology to take care of it.
In contrast to the above-mentioned advantages, a drawback of implementing blockchain in this sector causes the loss of jobs for several workers who had earlier been hired for the role of maintaining supply chain records. But this is not a problem that cannot be solved. This situation can be avoided if human capital and technology are harnessed together in an optimum manner. This is because one should never forget that though technology is getting advanced it can never surpass the intelligence of a human.
Cross-border Or International Payments
No business in the world would like to be limited to the geographical peripheries of its country and that is why it can enable cross-border payments through cryptocurrency. This is due to the fact that accepting international payments is a tedious task as every country has its own currency, which is a barrier to a smooth transfer of funds across borders. Since the world is moving in a fast-paced direction, it has resulted in the need for quicker and cheaper modes of fund transfers around the globe. Therefore, any business model should consider this method for expanding its operations overseas.
Enhancing The Core Capabilities
The usage of blockchain for business is fairly recent and this is why companies should aim at harnessing the potential in improving and enhancing the core capabilities of the business. By offering crypto payments or rewards, they might be able to lure new customers, that too without any limitations. In addition, the cryptocurrency domain has unseen utilities that have still not been harnessed, which could be beneficial for business organizations around the globe.
Today, even the central banks in various countries have decided to develop and launch their own native crypto, which suggests that the digital currency world has the power to alter the way traditional currencies work. Therefore, implementing blockchain technology in the form of these currencies in the early stages would be a key measure in order to advance the overall working of a business enterprise.
Crypto As A Possible Inflation Hedge
Though cryptocurrencies are one of the most volatile financial assets, they can still be used as a protection against inflation hazards. This is because the domain has grown considerably in the past years. The sector can serve as a potential inflation hedge during extreme market conditions and macroeconomic concerns. This conclusion was ascertained by the fact that several investors and organizations had invested in digital currencies like Bitcoin as a hedge against inflation.
Most people are into BTC despite its volatility and consider it a hedge against inflation as it has a limited supply and due to its appeal when the real yields of this crypto move towards zero. However, in recent times this potential of cryptocurrencies has been challenged due to the prolonged crypto winter season. Therefore, it is recommended that this point in the list of ways of how to implement blockchain in business should be considered only after proper scrutiny and research.
New Capital Funding Opportunities
A business that has decided to adopt cryptocurrencies into its work can try developing its native token and initiate an Initial Coin Offering (ICO) for exploring a new mode of funding the organization’s capital. It is quite similar to the traditional way of Initial Public Offering (IPO) and thereby doesn’t cause much hassle once the coin is developed.
The company might even decide to venture out into NFT marketplaces for obtaining capital funding. This is a trusted method apart from the regular stock and series fundings. Also, it can welcome more people to invest as they need not have a mandatory KYC that is necessary in the case of IPOs. It is one of the uses of blockchain for small business organizations as they might not be able to offer crypto payments due to the risks involved in it.
An Intricate Closure
Now, when you know how to implement blockchain in business, we expect that you might consider some of the above-mentioned ways in the domain for the better performance of the business enterprise you are a part of. If you are not someone from the corporate domain, please help your known ones in the sector in the usage of blockchain for business as it might be one of the best changes that they might consider. Also, there are many other blockchain applications that we might have missed. So, please research further about it before trying them out yourself or recommending them to others.