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Five benefits of the blockchain outside of Bitcoin & Cryptocurrency!

You may have heard mentions of the blockchain, in relation to bitcoin transactions, as well as the trading of other cryptocurrencies. The rise in awareness of the blockchain has much to do with the meteoric rise in the value of bitcoin in recent times. The cryptocurrency has become more widely accepted, and despite many people predicting its demise, this does not seem to happen anytime soon.

There are a host of companies in different industries that accept payment by bitcoin, including web hosting companies, bitcoin cash gambling sites, travel sites such as Expedia and tech giants Microsoft. So, what if bitcoin does fail? If this ever happens there are still plenty of benefits to be had from blockchain technology, outside of the world of cryptocurrencies.

What is the blockchain?
benefits of the blockchainIn order to understand these benefits, it’s important to know how the blockchain works. Blockchain technology enables data to be held across a network of computers in a decentralized manner. This means that there is no central database for hackers to target. It also means that information is stored and reconciled across all devices making the process more transparent and meaning that data can be tracked more easily. Although the technology was created for the use of bitcoin cryptocurrency, it can be used in many aspects of business.

Five benefits of the blockchain outside of bitcoin

1 – Managing the supply chain
It’s much easier to manage a supply chain that is completely transparent. The number of goods, their origin and position in the chain should be quite apparent in a blockchain system. Simplifying the supply chain management process in this way could provide significant time and money saving benefits to businesses.

2 – Assuring quality

Quality assurance is an important process for any business. They want to make sure their product meets the required standard of quality. In some industries, such as automotive or food services, this could be a matter of safety. Blockchain technology enables any issue with a product or process to easily be traced back to its origin, making resolution of the problem a lot simpler.

3 – Using smart contracts

Drawing up and ratifying business contracts can be a time-consuming process. Using block chain technology enables contracts to be signed and validated immediately. This reduces the amount of time wasted waiting for the contract process to be completed and could result in significant financial benefits for companies.

4 – Blockchain and the stock exchange

The major benefit of blockchain technology, when it comes to the stock exchange, is that it’s reliable at the same time as being transparent. This is why global stock exchanges, such as the Australian stock exchange, are dedicated to creating a blockchain powered system, to empower a better way forward.

5 – Transacting with peers

You cannot ignore the benefits of what the blockchain was originally designed for; the world of cryptocurrency. Currencies like bitcoin afford a safe and transparent way to transfer funds online. No matter what the future is, for bitcoin itself, it seems that there must be a place in the world for cryptocurrency. Whether the world is ready to fully embrace cryptocurrency right now remains to be seen. But it’s evident that blockchain technology is definitely here to stay.

ABIOYE Ejiofor
 

ABIOYE, Blockchain research and development, Technology enthusiast.

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