It seems that the world is simply disregarding or ignoring the significance of blockchain technology and its applicability in varied business solutions. It seems like the world confines Blockchain Technology, only to the cryptocurrency.
With the sensational dropping of Bitcoin, after it’s cosmic development during 2017, the people have strengthened their notion that adaptation of Blockchain Technology in their business, can any time bring misfortunes to their business place in the form of collapse or value deterioration. However, no one is ready to dig the wide plethora of possibilities the Blockchain can offer to their business, significantly improving the business efficiency, security, transparency, customer relations, profitability and more.
While many belittle the Blockchain, it is seen that the technology is highly beneficial for both end clients and organizations offering varied business solutions. Blockchain in B2B business arrangements can simply enhance the security and profitability of the ventures. While cryptocurrencies themselves can play a vital role, the forward-looking organizations will, in general, execute them for various business payments.
What is Blockchain?
Before we get into the discussion of Blockchain in B2B business solutions, it is equally important that you have a basic idea – what is blockchain. However, if the reader is well-literate on this technological innovation, he can simply skip this section and move ahead.
For beginners, let me make it brief that Blockchain is a decentralized record or ledger, a database that facilitates with sharing and altering processes. Blockchain-based frameworks don’t demand central servers or middlemen to perform information exchanges. In nutshell, it simply disposes of the mediators in transactions like the banks, money processors or other institutes.
Historically, the blockchain technology was developed as a technical base for Bitcoin, the world's first cryptographic money, proposed to supplant fiat cash. Be that as it may, now the visionary has changed and the decentralized frameworks have been witnessing its applicability in varied B2B business solutions. It is seen as highly valuable for different businesses apart from funds/finance.
Today, Blockchain innovation encourages various procedures right from storing confidential business information to tracking of business products, essentially serving different B2B needs.
How Blockchain improve for B2B business?
For, those companies, who are involved in the process of creating products and offering services to other business organizations, for them blockchain can be some sort of a new bank. Utilizing the blockchain technology, one can seamlessly handle the process, involving along sending and receiving of cash, signing contracts, accepting the deposits and significantly more. However, do not confuse or befuddle the blockchain with the new generation online banks, as the latter is yet controlled by the centralized authorities, while blockchain remains purely decentralized.
One may assume from the above said that money deals can be the most viable and clearest use case of blockchain. To an extent it's true, however, remains partial.
There are many different opportunities under blockchain and cryptocurrency that can enhance B2B operations. Let us see in detail, how about them in B2B.
Blockchain in Supply chain and Logistics
Blockchain in supply chain management can be a smart solution for many reasons, be it the tracking of goods/ products delivered by your organization or accessing the relevant information about the chosen products or their related data. Blockchain via its smart intuitive features-efficient tracking and real-time information access, it triggers out of the possibilities of any kind of misinterpretations, human errors or mistakes happening in the workplace. Moreover, it helps in identifying issues at its fast space, creating no moments of delay in production or supply. This simply enhances the productivity of your business organization, generating more profitability. Yet another advantage of blockchain in supply chain management is that unlike the traditional supply chain set up, the business need not invest many resources, as the technology truly evades the paper works, minimizing the processes.
Also, the decentralized databases vitally expand the partner's trust. Blockchain network remains immune to any data tampering as every information are tied to different blocks on the blockchain network. Everything about each change can be effectively followed and gets notified on time.
Blockchain is very being effectively utilized in this field, with explicit forums dedicated to developments are rising every now and then. Newer solutions are being propelled constantly by tech enthusiasts to showcase the best treatment in the supply chain industry.
Some of the prominent examples of blockchain implementation in supply chain sectors are BHP Billiton and Walmart. The duo is the world's biggest organizations and has implemented blockchain technology in their workplace. BHP Billiton has used the technical innovation for its mining processes and Walmart has implemented the blockchain application for tracking their products coming from China to be delivered in the US.
B2B sales have longer life expectancy than B2C ones, which again comes along with the issue of trust. With the aid of blockchain technology, it becomes highly seamless, simpler and less expensive to build trust in relations with business accomplices. Jeremy Epstein from Never Stop Marketing makes a reference that about 50% of existing B2B organizations check the accomplices; reliability or make a stringent effort towards implying the secure payments. However, in the traditional setup, checking the credibility of the partner and securing the transactions cannot be so handy as expected. Because the technology has grown like never before making it difficult to distinguish among the fake and real. However, with blockchain, both two alternatives become pointless as blockchain frameworks ensure the security for all participants.
Blockchain keeps the potential to take the world to a higher new level, where the business deals will be controlled by the unprejudiced machines rather the humans. The finest example is a smart contract. The concept of smart contracts was originally designed for the Ethereum network to facilitate and encourage the deals between Ethereum app developers. However, today the smart contract has surpassed its initial job role and paved its way to the business organization and its processes.
Today, the blockchain smart contract is widely adopted among the business organizations for triggering different business operations. The popularity of its wide implementation among business circle is the pre-defined set of rules, that evades the possibility of future editions. This helps in conducting the transactions without any chance of tampering or data erosion. It simply enhances the security and reliability of the transactions.
Utilizing smart contracts, the B2B organizations can affirm all terms and conditions viable, at the same time avoid any misconceptions.
As we've referenced before, the most obvious use of blockchain technology or its favorable advantages in the business place is the money exchange. Blockchain technology is decentralized, it completely eradicates the need for intermediaries like banks and payment processors for conducting transactions. Blockchain in no time, instantly permits the money exchanges with moderately lower charge, implying a very low cost of expense to every party involved in the network.
Even the customary projects like SWIFT have understood the significance of blockchain deals, extending its adoption to this technical innovation. Visa has recently introduced The B2B Connect system, for bringing qualitative improvements in their digital identity matters.
The significance of cryptocurrencies quite is evident for both B2B and B2C business organizations as it facilitates to conduct speedy and cheaper transactions across the globe. With cryptocurrencies, the cross- border transaction challenges have been minimized like anything. There are even business solutions offering the digital currency administrations – B2BX for institutional customers. They envision in taking the crypto market to another dimension.
In nutshell, the blockchain can act as a virtual bank for B2B companies for conducting their operations efficient and profitable. Unlike the conventional business set up, blockchain helps the business organization to completely eliminate the role of the central bank for processing the business transactions.
Blockchain Expert has developed and customized a large number of blockchain applications for clients sprawling across the globe. We have helped them in maximizing their return on the investment in information technology. We are blockchain development company To avail our service in building customized blockchain solutions, drop your request to email@example.com. We are happy to jump on a call.