How Enterprises Use Blockchain for Business Processes?

Gained popularity as the backbone of Bitcoin and cryptocurrency, blockchain has now entered into many realms of business. It is playing a transformational role in reshaping the business models by bringing them in the mainstream of digital commerce.

At its core, blockchain is the modern way of storing information. Talking about its most significant aspect, blockchain doesn’t cater to the needs of an individual; instead, it works based on an agreement between all the network partners. It certainly implies that a single member can’t alter any information stored on the blockchain without notifying others. Moreover, any document between sharing parties shows the same information without any back and forth.

Gifted with characteristics like immutability, transparency, and authenticity, blockchain is a reliable and effective solution for enterprises that want to streamline their business operations in 2020.

Let’s find out how blockchain is imparting efficiency and competitiveness to the businesses.

1. Improved Supply Chain Management: Supply chain is an intricate network of manufacturers, suppliers, vendors, shippers, and many intermediaries. It is the most vulnerable segment of a business that offers a broad scope of malpractices. However, it seems that with the advent of blockchain, the transparency of the supply chain has increased manifolds. Now the manufacturers can see what is happening at every touchpoint, thereby enabling them to eliminate any possibility of ethical breach. For example, the grocery giant, Walmart is using blockchain to stop the spread of foodborne diseases. It has asked farm owners to update every information digitally for end-to-end traceability. Walmart is tracking supply chain management of shrimps, mangoes, chicken, and many other products to ensure its customers get fresh food. Blockchain is the simplest way of assuring that vendors practice what they say.

2. Improved Contract Management: Contract management was never easier before blockchain technology. Traditionally, contract enforcement always faces delays and issues because of the difference of opinion between multiple parties and also due to continuous modifications. However, as contracts get updated on the blockchain, every party has the latest version of the document without worrying about previous versions, thus saving enormous time and paperwork.

3. Improved Payment Mechanism: Payment delays are often a bottleneck for businesses. However, blockchain offers a simple solution to this problem. As all parties are on blockchain, the process of reconciliation is eliminated, and payment is triggered once the transaction is approved by the parties involved. Since every detail of the transaction is recorded on the blocks, verification is inevitable, and all the parties come to know instantly about payment approval.

4. Improved Authenticity: Blockchain has touched almost all sectors. For example, it can be used for authenticating a candidate’s profile for a particular job role. Instead of checking with previous employers and clients, human resources, people can save time by tracking the complete information on the blockchain.

Evidently, blockchain is a game-changing technology that can help businesses to stay ahead in the curve in 2020. If you are looking to embrace digital solutions in your business model, Katalyst Technologies can help. We are a leading digital commerce solutions provider enabled with disruptive tech like blockchain.

Contact us today.

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