Everyone knows what Bitcoin is and its importance in business. But, most people do not know the technology behind this cryptocurrency. The technology used for Bitcoin is blockchain. Blockchain can be used in wide variety of other applications also.
Blockchain is actually a public ledger which is digitized, decentralized and it’s behind all transactions of cryptocurrencies. As it is decentralized, there is no need of central servers. It is maintained by a computer network instead of maintaining by a central server. Thus making it cost effective. As most of the blockchain data is encrypted, people who try to verify it from their computers will not be able to understand what kind of data it is. This serves as an additional security which in turn avoids the need for expensive IT infrastructure. The advantage of using cryptocurrency is that money can be transacted from one person to another easily without the need of costly IT infrastructure. Thus, reducing the cost and also the time needed for transactions.
Some of the advantages of using blockchain in B2B businesses are as follows.
These cannot be altered or deleted and are linked to other transaction records that occurred before like a chain.
Definitely, blockchain is gaining popularity day by day. It’s sudden growth and increasing value in the market is attracting more investors to it. Many businesses have started to use it for safe and secured transactions. Blockchain technology is a growing database due to its features such as enhanced security and trustworthy nature. As it is rapidly growing and gaining immense popularity over media, which makes other media such as Facebook, Twitter, YouTube less popular these days. Blockchain in B2B Businesses Blockchain has set its footprints in retail industry and keeps its promise in delivering communications in between customers, merchants and partners. It constantly thrives to improve performance, retail management plans and process the assets and data in a confidential manner. Blockchain reduces the time of transaction between the trading merchants, increases the trust between merchant and supplier, and boost the opinion between retailers. This technology helps more in tracing items that are valuable and regulated, place order such items in advance and timely delivery will help both retailers and consumers. Impact sensors are launched to monitor physical supply chain which will notify merchants and consumers if there is any logistic incidence. As a distributed decentralized ledger, blockchain allows each legitimate member inside the supply chain to verify authenticity of products handled through the medium. It carefully handles product swapping and counterfeiting.
Payment instructions are issued by buyers which initiate currency transfers and transactions that include time stamping. Blockchain avoids all sorts of payment delays which include checking availability of funds and clearing, billing and reporting the activities occurred. All these financial activities are validated in real time basis. The beneficiary bank receives irrevocable cash transfer notification which blockchain gives confirmation and also does all the corresponding verifications for authorizing the data for payment. Through blockchain, values can be moved from one geographic location to another without compromising the quality. This feature allows B2B companies not to waste huge capitals invested across different locations to work with their customers. Using cryptocurrencies, companies don’t have to face losses in form of currency exchange rates. Transaction done via blockchain doesn’t need to pay exchange rates for fiat currencies as they have same value in USA, Australia and UK. B2B businesses fit perfectly in blockchain technology Distributed Ledger Technology (DLT) also known as blockchain is a reliable technology with huge market potential and have the potential enough to change the existing enterprises. It assures secured data management through the facility of distributed storage encryption. This feature can be applied in various sectors as discussed above. Like any other new technology, blockchain will also have to face lots of challenges as it grows. However, it is unanimously agreed that it has wide variety of applications across several other industries. In coming days, we can expect a rapid growth of blockchain technology in sectors such as trade finance, money remittances and payments.
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