Beyond bitcoin, blockchain technology can be an advantage for companies.
In addition to cryptocurrencies, the use of blockchain in companies is a growing trend. It enables near-instantaneous storage and sharing of data. In the case of digital coins, it’s used to record transactions made and store them in a computer chain.
Data saved in computer chains form a very secure storage network, which is called blockchain. Many types of data can be stored and shared, enabling each user to have a unique access key to identify them.
If you consider that we’re at a crucial moment for process of the 4th industrial revolution and that data use is at the heart of the revolution, we can see the importance of applying blockchain.
Benefits of blockchain for companies
The speed at which blockchain enables you to run your business outweighs the capacity of any traditional model. For example, compare the number of weeks required for international bank transfers and Bitcoin compensation, which is almost instantaneous.
Those same banking transactions depend on intermediaries, generate fees, and require bureaucracies for the control and security of the process. Blockchain dispenses with intermediation and lowers the resulting costs. While the impact per deal may not make a great impact, on a scale the gain is exponential.
Blockchain makes hacking more difficult because it enables data to be encrypted individually, and its access depends on the use of a custom key. All access codes are required to enter the system. While nothing is 100% secure, the security level in blockchain is higher because a compromise in part of the block cannot enable access to data across the system.
In Denver, in the United States, consumers can know the exact origin of coffee they take. A pilot program uses blockchain to trace the product source and inform anyone interested.
By using a QR code on the packaging, it’s possible to check the payment made to the producers, learn about all intermediaries throughout the chain, the quality classification, and other identification details.
Blockchain is becoming a business trend, since the same transparency can be achieved in in a wide variety of occurrences. The case of investments focused on digital marketing is one example.
The blockchain record makes it possible to know for which agent in the chain the money was sent, in what volume, on what frequency, if it really reached the audience for whom it was intended, and with what result. Everything is traceable and protected.
In addition, with blockchain you can store applications that run services automatically, such as transfers. Customers can access secure information about their transactions, and as a result have more comfort about the reliability of the vendor.
Blockchain applications in companies
There are still technological barriers to overcome before blockchain is used more broadly, which may take a few years. But there are already many great applications for companies. Find out below other possible blockchain solutions!
Just like the coffee application in Denver and the management of a digital communication campaign, a marketplace can provide its customers with information about product origin, individuals in a negotiation, and intermediaries labor policies, to name a few examples.
In this scenario, brand reliability and responsibility take on another level, which can improve relationships, loyalty, and customer experience.
Just as for consumers in a marketplace, companies can use information about events in the production chain to improve quality and control over raw materials and products.
From the operational point of view of a parts recall — common in the automotive sector — there is a positive impact on efficiency, agility, and costs. After all, vehicle buyers can also be registered, making it possible to direct warnings and automate parts exchange schedules at dealers.
Walmart already uses blockchain technology as a traceability resource to identify the source of problem products, eventually contaminated batches, and their location in stores.
The most well-known application of blockchain is not limited to Bitcoin and other digital currencies. Large banks have rushed to test blockchain in payment control.
In Brazil, Banrisul, Banco do Brasil, Caixa Econômica Federal, Santander, Itau, and Bradesco are examples of institutions that bet on blockchain as an alternative for transfers.
In 2018, Itau used the technology to store data on guarantee margins contracted by investors. Since 2016, Febraban (Brazilian Federation of Banks) has maintained the blockchain working Group, which brings together the Central Bank and the largest banks in the country to deal with the adoption of the technology.
Even the UN invests in blockchain, more specifically for an identification project. Registration systems capable of identifying people and transactions are fundamental to the financial system and the democratization of access to it.
A more efficient system can help reduce bureaucracy in opening up bank accounts and even make a difference in humanitarian crises.
In Canada, banks and the government have mobilized to create a company that uses blockchain to lower costs, increase security, and ensure the privacy of banking customers.
Smart contracts are programs that store contractual rules and automatically execute them. A simple example is when a person makes a payment commitment.
If using this type of application, on the due date, the system checks whether the payment has been processed and performs the corresponding action — which, in this case, may be to charge the buyer or, if paid, to write it off.
With blockchain on a scale, there are no limits to what can be automated with the adoption of these contracts, since different information can be accessed in the chain to apply the planned action.
In this scenario, we can picture a future in which a tenant candidate who, using virtual reality glasses, checks out an apartment without leaving home. At the same time, he decides to take the lease, proves his identity with an encrypted key available in blockchain, signs the contract, and makes the first payment.
As soon as he arrives in front of the property, the smart contract is triggered by his mobile phone, confirms that he is at the door through face identification, and releases the door-locking device.
Blockchain in companies and its large-scale use by consumers can change reality, as the internet has done in recent decades. It will be behind sites, devices, platforms, and applications making everything happen faster and safer.