What Problems Can Blockchain ‘Actually’ Solve
The hype surrounding Blockchain and ledger technologies in the last few years has compelled many businesses to explore what the innovation can do for them. However, before organizations make a conscious decision to invest in the infrastructure, it is imperative to answer a simple yet rarely answered question – what problems can Blockchain actually solve? After all, it is crucial for a business to explore both side of the coins before making a decision that influences its operations, activities and ultimately, its profits. Here are just a few examples of the many:
Keeping Track of Ownership History
When it comes to rare items such as diamonds or limited art pieces, establishing a track of ownership history becomes critical. The reason behind this is that the trade of such activities can become subjected to the actions of corrupt individuals that may have their own malicious intents to serve. For example, rebel groups based in Central and West Africa are notorious for using “blood diamonds” as a means to finance activities against established authorities and governments. This phenomenon has led the legal diamond industry to devise frameworks for granting certifications to lawful suppliers in a bid to promote transparency.
Unfortunately, it is easy to forge paper-based certifications and introduce “blood diamonds” within the global diamond supply chain and this is where Blockchain comes in to solve a pressing problem for the industry. By building ledger-based platforms to keep track of expensive items, customers can eliminate the possibility of becoming victims of fraud and easily check the authenticity and origin of items. This is certainly a breakthrough in the global diamond market with leading brands showing their support for the effort and can be replicated across other industries where cases of fraud are prevalent.
Promoting Transparency of Global Supply Chains
Global supply chains have been marked with inefficiency and a lack of productivity especially when it comes to tracking shipments. A digital ledger which shows logistics data in real-time and is free from the influence of third-parties can enhance the clarity of operations and promote collaboration between partners. This practice has already been adopted by the retail sector as Walmart now uses Blockchain technology to track its supply chains in nations such as Mexico and China. The technology helps save time, cut costs and could even aid in the prevention of foodborne outbreaks as the company can easily identify the source of produce and ban further imports on an immediate basis. The unparalleled role of Blockchain in supply chains has the potential to revolutionize several industries and businesses because it directly impacts logistics and operations.
Combating Fraud in Travel and Insurance Industries
Credit card fraud poses a pressing challenge across the globe. In the airline industry, a growing number of transactions have to be rejected owing to suspicions of stolen information. Similarly, sensitive client information in the insurance industry remains at the risk of being compromised as manual ways of documentation and recording are vulnerable to attacks. Storing information in a Blockchain environment can eliminate these problems for good and safeguard the interests of stakeholders within these sectors.
Revolutionizing the Freelance Economy
The presence of Blockchain technology eliminates the need to have third-parties or middlemen to complete financial transactions. This feature is particularly advantageous for freelancers because it gives them the freedom to handle their payments and not have to worry about giving a specific cut of their hard-earned money to a payment service in the form of transaction fees.
Blockchain can also help freelancers establish smart contracts with clients and receive prompts payments for their work. In fact, the absence of third-parties in Blockchain environments is not only beneficial for freelancers but business owners in general who want to steer clear from agents and contractors that are mostly unreliable and take a huge chunk of their revenues.
Blockchain – A New Promise
Blockchain technology is already shaping businesses of the future. With proven benefits in terms of logistics, ownership tracking, transparency and operations management, a wide array of businesses and entities can integrate this technology within their existing systems. It is never too late to discover the doors that Blockchain can open for you and gain a competitive edge in a cut-throat market by boosting productivity and enhancing operational efficiency.