Blockchain Technology Application in Real Business: TOP-5 Areas
Many companies use blockchain technology to simplify tasks. Cost reduction, revenue increase and smart customer service are some of the many benefits that blockchain technology provides. That being said, it’s no surprise that 95% of companies across industries have invested in blockchain technology projects. According to experts, Blockchain can be used for many purposes, ranging from regulatory compliance to data management.
Companies use Blockchain technology in various sectors of their business:
Blockchain in Marketing
Marketing on digital platforms is facing huge challenges these days. Companies that collect user data are being attacked by hackers to steal data, and generating ad revenue through fraudulent clicks is the biggest problem the marketing industry is currently facing.
The blockchain-based identity system is developed using a distributed open transaction ledger system that offers a digital signature and verification system to identify people. This blockchain based system ensures that no false clicks get through to generate fraudulent ad revenue.
Here are just a few examples of companies currently using blockchain technology:
- Microsoft is building a decentralized identity system based on blockchain technology similar to Bitcoin, Ethereum and Litecoin and supporting it through the Authenticator app. Microsoft also offers blockchain storage for banks, healthcare institutions and startups.
- Amazon, through a collaboration between the Digital Currency Group (DCG) and their own Amazon Web Services, provides its BaaS to technology companies such as financial institutions and insurance agencies.
- IBM also has a BaaS platform designed to streamline the operations of companies with many e-commerce transactions.
Blockchain Use in Quality Assurance
Blockchain can help tracking and recording transactions to improve food management, safety and quality in the food industry. Global retailers and food manufacturers are working hard to track products and optimize transparency in the supply chain. A number of brands have activated blockchain technology to highlight the need for product and supply transparency that ensures safety and quality.
Supply Chain Care
Supply chains are experiencing a revival in management and processing, offering detailed member profiles to increase confidence in product safety and quality.
The use of blockchain-based applications also reduces the time required to collect comprehensive information about suppliers and transfer it to buyers. This gives confidence to consumers while alerting both retailers and manufacturers to foods identified as unsafe.
Transparency in Agriculture
Increasingly in recent years, companies have been leveraging the power of blockchain technology to create concepts that specifically target the organic farming sector for businesses and consumers.
The agricultural industry is also using blockchain to maximize its potential in transport, logistics and transaction costs.This is achieved by improving inventory tracking and delivery processes and reducing associated transaction costs by eliminating the need for third-party banks.
Brand Transparency
Gathering information is a key component of product safety and quality in today’s marketplace. Buyers are actively looking for sources of origin and methods of food production in order to understand the entire supply chain. Blockchain ensures that consumers can access labeling information on smartphones. It also gives supermarkets the means to access the large amounts of data that flow through the supply chain. The technology provides comprehensive traceability that guarantees product quality.
Companies that successfully use this quality assurance solution:
- Auchan Retail is a French retail group using blockchain technology to improve supply chain tracking. As a brand leading the campaign for a healthy population, Auchan Retail launched the technology and has subsequently adopted it in France, Italy, Spain, Portugal and Senegal.
- Mozzarella is another company that is seeing the impact of blockchain technology. The Italian company Spinosa implements the first Mozzarella di Bufala Campana PDO certified for the entire blockchain. Each product is equipped with a “Blockchain – Certificate of Quality” label and a QR code.
Blockchain Use in Trading and Payments
People who have problems using traditional payment methods can use blockchain to receive money. With blockchain payment processing, your business can directly and securely pay cash to employees anywhere in the world.
There is a study by Deloitte, which shows that the implementation of Blockchain technology in reverse transactions minimizes costs by an average of 2-3% of the total amount. It also enables instant payments across international borders, which is already a great improvement over the traditional payment system.
Blockchain As a Means to Simplify Complex Procedures
Proof of payment, transfer of shares, and the significant amount of mathematical data needed to quantify real-time share prices can be improved with blockchain. In addition, as alternative cryptocurrencies become more and more popular, there are new opportunities for trading through dozens of blockchain-based trading platforms.
Blockchain in financial trading means transparent pricing, new alternative markets, faster payment processing, and a permanent record of transactions. Companies using the technology:
- Decentralized exchanges using blockchain for safe, secure and cheap real-time cryptocurrency exchange. Some of the most popular: Binance DEX, IDEX, Altcoin.io, Waves DEX, Openledger DEX, RuDEX
- Paxos is the first regulated trust company to use blockchain. Using accounting technology, a company can instantly settle transactions, automate payment processes, and exclude third parties. In addition, the standard Paxos (PAX) token is worth $1, making it stable for digital transactions.
Blockchain Use in HR
The use of blockchain in business is more than just a concept that HR professionals need to know for partnership purposes.
All data held by the HR department is at risk, and as more companies face data breaches, it is imperative that there are safeguards in place to prevent fraud and ensure security. In the face of rising cybersecurity crime, blockchain technology is being valued as a solution.
Improving Recruitment, Qualifications and Curriculum Vitae Processes
Perhaps the biggest benefit blockchain has to offer is trust in the validity of its data. In today’s recruiting systems, it is difficult to determine the accuracy of a potential employee’s work history and educational background. Even the most experienced recruiters can be deceived by a candidate’s falsified work experience and education. While blockchain cannot guarantee that all inaccuracies or exaggerations will be found, it adds credibility to the information in a candidate’s resume.
Optimization of Payroll, Contractor Payments Supplier Tracking
One of the most common use cases for blockchain HR is related to the company’s biggest expense and the process that employees value the most – payroll. Blockchain can replace many manual tasks and eliminate time delays in existing payroll systems. It also offers “smart contract” solutions.
HR will not need to contact their company’s bank or make monthly payments. Instead, transparent, real-time blockchain ledgers help track bills and facilitate distribution, billing, and transaction reporting. There is also no need to wait for the usual payroll processing time.
Companies using blockchain in HR:
- ChronoBank is a blockchain-powered HR solution designed to help companies recruit, hire and manage employees. Chronobank is also working to provide payment solutions that will help empower the HR industry with a full range of services.
- PeaCounts is a blockchain payroll solution designed to automate the payroll management process. Using AI to verify performance metrics and milestones, PeaCounts pays people with its PEA token using smart contract technology. PeaCounts encourages others to build services on top of their blockchain protocol.
- HireMatch is a decentralized recruitment platform partnered with Recruiter.com. With its HIRE cryptocurrency at the heart of the marketplace, HireMatch aims to reduce the friction and costs associated with third-party intermediaries in the recruitment process.
Blockchain Use in Smart Contracts
Smart contracts are a computer set of rules designed to digitally verify, facilitate, or enforce or negotiate a contract. We can compare them to how vending machines work. Smart contracts do not require the participation of third parties in any process.
Banking & Financial Sector
Clearing and settling transactions is one process that can greatly benefit from the use of smart contracts.When conducting clearing and settlement transactions, banks must record the obligation of several parties to participate in the exchange of funds and ensure that after the obligations are fulfilled, these funds are transferred.
A company that has implemented a blockchain from the financial sector – SETL – a London-based blockchain settlement platform that is already used by Citigroup, Credit Agricole, Computershare.
Healthcare
The most obvious application of blockchain is the management and access to patient data. A single patient’s medical history can often be shared among multiple health care providers, making it difficult to access them. The use of smart contacts makes life easier for healthcare professionals and also helps ensure that patients are not left behind due to fragmented records.
Real Estate
Another business sector that has traditionally been brimming with third parties and intermediaries is the real estate industry.
In the case of real estate agreements, contracts can be reviewed and applied automatically without the need for human interaction, reducing the need for agents, lenders, inspectors, and property rights insurance providers.
A good example of an organization implementing blockchain in real estate is Propy. The first step of the blockchain transition project is a listing platform where sellers can list property information and buyers and agents can search for properties. The next part is a transaction platform where users can send documents, records, and payments using the blockchain.
Education
As digital records become the norm for educational institutions, the security of students’ personal data is more important than ever. As cyberattacks continue to rise, these records become valuable assets. The scope of record keeping and ways to improve the blockchain in current models go beyond security.
Another interesting potential is the ability to organize and verify diplomas on the blockchain. Blockchain can completely eliminate diploma fraud, which is a real problem in many parts of the world. As a rule, universities have administrators who fully or partially deal with employers’ questions regarding the qualifications of future employees. With blockchain, these administrators no longer need to waste time on these interactions, as each diploma is available in an immutable form on the blockchain.
Conclusion
Aside from the hype, blockchain is strategically important for businesses as it allows cost reduction without disintermediation as well as the creation of new business models in the long term. The existing digital infrastructure and the growth of the blockchain-as-a-service (BaaS) offering have reduced costs, and many companies are already testing the technology.
Unfortunately, the faster and more widespread implementation of blockchain technology is hampered by its complexity and lack of competent specialists.
However, fierce competition in the global market is forcing companies to force new technologies, which will inevitably lead to the massive spread of blockchain in all spheres of human life in the near future.