If you wonder what the benefits of blockchain are, we have several answers. This technology has boomed, as it is the basis of so-called cryptocurrencies. Many consider it similar to a computer DNA chain.
It has significant advantages for e-commerce. Many of the Appstudio partner companies already rely on these blockchain benefits. It should be noted that the concept of blockchain was first coined in 2009, along with the birth of Bitcoin. It has many applications, it serves as a kind of digital public notary. It is how cryptocurrencies monitor the value of their assets and protect those who undermine their currencies. Another benefit of blockchain is that it is used on decentralized platforms to make smart contracts.
The great advantage of the blockchain is that it allows transactions between two parties without the need of an intermediary. This specific feature of Blockchain has become worrisome aspect for the banks. The blockchain system can leave them out of the buying and selling a business. This is the reason why many banks have decided to use the blockchain instead of competing against this technology.
How does Blockchain Technology work?
The benefits of blockchain are generated by the incorporation of cryptography to a certain aspect. That is, specified symbols are programmed to share and produce information. It depends on the exchange of P2P data. The latter means that it allows the exchange of files and data between two users without the need for a central server.
What advantages have the characteristics described above? It happens that the data is not centralized on a single server. On the contrary, they are distributed among the user network. This makes the information much harder to hack. Also, if any data in the chain is hacked, it can easily be recomposed in its place.
In sum, we can say that the benefits of blockchain are that it is a safer way to store and transmit information. Each user is a kind of chain node. Each of these nodes usually receives and forward information. They do not need central servers.
It should be added that another benefit of blockchain is its characteristic of being completely decentralized. No one specifically controls the chain. This is supervised by all users. In turn, they cannot control other nodes of it.
Some peculiar uses of blockchain
There are many uses of this technology. Several companies and institutions incorporate it to improve their performance. We give some examples to our readers.
Health sector
It is ideal to keep medical records online and maintain their confidentiality. This is how a conglomerate composed of insurers, doctors, patients, and hospitals can have instant information.
Legal services
Remember that one of the benefits of blockchain is the realization of smart contracts. A direct interaction between parties contracting is handled by blockchain more efficiently. Besides, the confidentiality of data related to both parties is protected compellingly, even when they are on the network.
Military defense
The modification of a network firmware or operating system can lead to a serious commitment in the military field. Therefore, it is recommended to have the help of the blockchain to increase security in these cases. One of the benefits of blockchain is that you can choose a protocol or algorithm among all parties, before making a change to a key or code.
Government institutions
Allows government entities to exchange data in real-time. This accelerates the typical lethargy and bureaucracy of procedures. On the other hand, the use of blockchain gives greater transparency to operations. Therefore, it is considered as a splendid tool to minimize the corruption that is incubated in some government entities.
Manufacturing and Industry
Blockchain’s benefits are also embodied in the industry. It allows to receive information and catalog it effectively. This is something identified as the core of the secondary sector in economy as companies have a more effective way of approaching information and maneuvering data.
Real-time information
Since blockchain technology operates on a distributed platform (instead of centralized), each participant has access to the same records. When the information is updated, it is updated for everyone on the network at the same time. This allows the entire supply chain to be more responsive to any threat of fraud or food safety disaster.
Blockchain technology could bring advantages to each actor within the supply chain: producers, processors, distributors, suppliers … Here are some of them:
- Producers: Any attempt to manipulate a food product as it moves through the supply chain can be identified and prevented immediately before the food reaches the retailer.
- Retailers: If a potentially hazardous food product reaches the shelves, stores can identify and dispose of only dangerous items. This eliminates the cost and time of removing a product.
- Consumers: Transparency assures consumers that the food they are buying and consuming is exactly what the label says they are. Currently, 75% of consumers do not trust the accuracy of food labels.
Imagine that a retailer could see and validate with 100% certainty where each food was grown, handled, processed, stored and inspected. You can track every stage of your trip to your store. Blockchain technology has the potential to make this a reality. With the blockchain, there are no gaps in the history, location, and status of a food product. Instead, you can see the full picture while building the trust of your consumer.
Digital advertising
Where the lack of transparency so far has harmed the industry. Part of this, comes from a blind bid in the market, where advertising markets are accused of taking advantage of this, at the expense of both sellers and buyers. Another component of it is from the rise of bots, which look and act like humans and generate advertising payments for demand platforms without any human having seen the ad. Blockchain will come to simplify these processes and make them clearer to determine the real return on advertising investment.
The Benefits of Blockchain in Digital Commerce
Finally, we elaborate on some advice, related to the management of this nascent technology in e-commerce. It should be noted that this is its most immediate application, as it helps to create the famous cryptocurrencies. In this case, it has another number of interesting virtues in the field of electronic commerce. Let’s take a look at these topics below:
- It is the pedestal of cryptocurrencies: It must be remembered that digital commerce requires innovative payment methods. In the first instance, there are the famous ePayments. However, with cryptocurrencies, everything speeds up and becomes more comfortable. This is one of the first benefits of blockchain in this field of action.
- It allows a direct relationship between customer and seller: as we have said before, blockchain technology achieves communication through the P2P system. This is a great advantage, which helps speed up transactions.
- Innovative marketing strategies: direct experience with the client is improved. It is a perfect way to build loyalty and renew the interaction with it. Besides, it creates an excellent network between merchandise, warehouses, and distributors. The use of blockchain is the best option for retail and similar companies.
- Improves processes: another benefit of blockchain includes the reducing the presence of intermediaries. Therefore, communication is more immediate and direct. And this makes companies more competitive.
Incorruptible
As this technology has various mechanisms for data verification, alteration of the information contained in the blockchains becomes practically impossible. To start, whenever you want to change any data in a block, you need to change all the blocks in that chain. And that also means redoing all the proof-of-work associated with the blocks. And as there is a network of users who verify the veracity of the information, whenever someone wants to falsify blockchains, in addition to the entire network being notified of changes to occur, it needs to control more than 50% of the P2P network.
Customer satisfaction
In this digital world where uncertainty constantly affects users, there is no better way to offer a good service of guarantying customers about the total security of their sensitive data and transactions. In this way, companies gain competitiveness by having the preference of satisfied customers.
Although many relate it exclusively to Bitcoins transactions; Blockchain has more applications than can be seen with the naked eye. Luckily, the Blockchain and Big Data combination can show the world some potentials of this technology.
Accuracy
Thanks to the Blockchain, corrupt or incorrect data that is entered into a computer will not be able to enter the chain because they will not match the equivalent data on other machines. This represents one of the great advantages of Blockchain and Big Data, since its union allows the collection and classification of higher quality and precision of data.
Origin of products and materials
With the blockchain, it is possible to track products that were purchased within this chain. If a truck that carries medicines, for example, has a fault, from the Internet of Things sensors, it is possible to know in real-time about the logistic situation of the products delivery. If it is going to be delayed, in how much time, if it will be necessary to make a new order so that it is not needed in the inventory.
Creating distributed and autonomous merchant platforms
The online marketplaces will be able to make their transactions safe, dispensing with third-party supervision as the technology itself acts transparently and all involved parties can observe the action of each business. In this way, platforms can be decentralized and act in different markets.
As you can see, the blockchain opens the floodgates of novelties and improvements in various aspects of the digital economy. In the particular case of electronic commerce, it is a tool that manages to catapult this activity to interesting levels.
