Why businesses should adopt blockchain technology

blockchain platform
Credit: Shutterstock.com/ whiteMocca

In business, you can’t afford to stand still. Otherwise, you’ll get left behind. That’s why companies in various sectors are always keen to embrace the latest and most innovative technology, and blockchain undoubtedly falls into that bracket. Blockchain, where technology is concerned, can have an impact on multiple areas of businesses, and this is one of the reasons companies should be keen to adopt it sooner rather than later.

As mentioned above, if you don’t move with the times in business, you can suffer as a result. Businesses adopting blockchain technology will not only gain a march on some of their rivals, but a reputation as an innovative company. However, it’s vital any company using blockchain is fully clued up about it, as they’ll likely be asked about its pros and cons by those interested.

In business, keeping costs as low as possible leads to more significant profit margins, another area where blockchain technology excels. Many transactions now take place in the online world. However, with this comes fees from service providers such as PayPal. Blockchain allows a company to cut ties with these third-party transaction providers, therefore reducing the costs significantly. This factor is growing in importance, as millions of consumers are registering with companies like Luno to use their Bitcoin wallet to make transactions and manage funds.

As a company, by using blockchain technology for transactions, you’re effectively taking full control, which is never a bad thing. The transactions completed via the blockchain can be verified by relevant parties on-demand, without having to rely on a third-party service. They’re also final too, with no transactions changeable at any time, therefore removing the risk of manipulation.

So, not only will a business be in a much stronger and better position, the use of blockchain technology for transactions sends out an important message. Those dealing with a company utilising blockchain will know that everything is above board and transparent. It will increase the trust between the parties involved, and thus help strengthen relationships with other customers as well as partners moving forward.

One of the major concerns, if not the most significant, is the risk of data leaks by hackers. While traditional methods of data storage, be it customer details or financial records, are secure, blockchain technology takes things to the next level. As no third parties are involved with transactions, and due to the standards of encryption, the risk of hacking or cybercrime occurring falls significantly.

Finally, keeping records is of vital importance to any enterprise, especially if you’re a start-up new to the world. Storing records is crucial, keeping accurate ones even more so, and thanks to blockchain technology this is done effortlessly. Once transactions are verified, they are final, so the records you have as a business are completely accurate down to the minute detail. It makes dealing with accountants, the authorities and potential new investors a hassle-free task, giving you complete peace of mind as a business owner.