Nowadays, everywhere you go, you will find someone talking about bitcoins and other cryptocurrencies and the ups and downs that they are going through. All of this hype about cryptocurrencies is all well and good, but it had one negative impact on society. It has pushed blockchain into the background. People are not taking blockchain as seriously as they should. The less importance we give to blockchain, the less we understand it. And the less we understand it, the more afraid we are of implementing it into our businesses. This is why a lot of businesses that could have been taking advantage of this technology, aren’t. And it seems that it is going to take some time before it comes into the mainstream.
Blockchain is the technology that has the potential to democratize monetization in the world. It is a highly sophisticated algorithm that distributes data structures and manages all types of transactions. Now you don’t have to tackle government-backed entities like banks and more.
Especially B2B companies can really take advantage of blockchain technology. Just think about a virtual bank. You can move your money, accept and send any amount of deposits, and conduct any type of transactions. All you need is a blockchain app design company that can create a custom app for you and you are on your way to monetary freedom.
What Really Is Blockchain?
We just mentioned some of the many benefits of blockchain for businesses, especially B2B companies. But, you might be wondering what is blockchain and how does it work. To simplify the process, let us imagine a decentralized ledger. A virtual database that contains all the processes that are taking place anywhere in the world. It doesn’t need a central system or intermediaries to perform any of the operations that you want. This way, you get rid of all third-parties and intermediaries like banks and more and complete the transaction easily, effectively, and in less time.
If you think that a decentralized ledger system is good only for the finance industry, think again. There are other industries like healthcare, education, and more that can take advantage of blockchain. Later, we will discuss some blockchain real use cases that will help you understand the concept better.
Blockchain Use Cases 2020 for B2B companies
It doesn’t matter if you are a service provider or product manufacturer and distributor. You can use blockchain as your own virtual bank with the help of Artificial Intelligence app development company. You can do all the things that you did through your traditional bank and some things that you weren’t able to do before. You can send and receive money, you can create and maintain smart contracts, you can accept deposits, and so much more. The major difference between blockchain and banks is that blockchain is decentralized while banks have a central authority that they report to.
Supply Chains and Logistics
Blockchain can greatly enhance your supply chain management processes as well as logistics. You can easily track all the products that your company manufactures. It doesn’t matter where you reside in the supply chain path, you can easily check the status of the good and any data relevant to it. Blockchain technology also helps reduce risk factors like fraud, identity theft, and other errors. Also, since it is a digital technology, you won’t have as much paperwork to worry about as you currently do. This not only enhances the product quality throughout the chain but also instils trust in the partners. Since there is complete transparency, every partner can check the details at any time and track the entire shipment.
B2B sales have really picked up in the last few years, and experts are now predicting that by the year 2023, the B2B eCommerce sales will reach $1.8 trillion. In this kind of scenario, B2B businesses need a reliable and trustworthy system that they can use to ensure the security of their products, money, and more. Integrate blockchain with your B2B business, and you will automatically inject trust in your relations with your B2B clients and partners. You can rest assured that the payments will be secure and you can check your partners’ trustworthiness anytime that you want.
Ever since Blockchain technology hit the market, it changed the way we make and maintain contracts with each other. These contracts are totally unbiased and do not rely on human control. Smart contracts came into existence for the Ethereum network. They were used so that the software houses and the app developers could conduct their deals with security and transparency. This practice then became common and more and more businesses started using smart contracts to conduct business with each other. Smart contracts help B2B companies set the terms and conditions in details and make sure that there are no misunderstandings later on. This way, no partner has the right to disregard the contract once it is signed.
We all know and we have already mentioned that the most benefit that blockchain provides is to the financial sector. Hence, when you remove all the intermediaries like banks and payment processors, what you are left with is a transaction process with little to no transaction fee. This means lower expenses. Now add up all the transactions that you do in a year and you can figure out just how much money you will save if you implement blockchain technology in your transactions.
One more feature of blockchain is that it will enable B2B eCommerce businesses to accept and deal in cryptocurrencies. Bitcoin has garnered a lot of fame and it is supported almost everywhere you go. When you add blockchain technology to your operations, you enable others to pay you through Bitcoin or any other form of cryptocurrency that you are comfortable with. You can choose the cryptocurrency based on availability, prices, or any other feature and as long as both parties agree, it can be used.
Blockchain is not as widely used as it should be. It is gradually making its way into the mainstream and people are slowly realizing all the benefits that it can provide to their businesses. It won’t be long when it will become a common factor in any business and become a necessity instead of being a luxury. The question is when are you going to start applying blockchain in your B2B business.
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