We all are aware of this widely-known fact that more and more businesses are adopting blockchain in 2019. This digitally dependent era has witnessed extensive growth in the blockchain technology adoption due to the innumerable benefits of blockchain in recent years.
The use of this advanced technology has increased unbelievably not only to fulfil financial purposes, but it has also grown in uncountable facets of human society.
The following are the stats provided by YourTechDiet of expenditure and investment that are the finest example of the domination of blockchain technology over this digitally-powered world:
- The size of the market of blockchain was $400 million in 2017, and right now it is more than $500 million. And, the blockchain technology market to grow to $20 billion by 2024.
- 2. There were 24 million users of blockchain wallet users in 2018.
- 3. Investors have made an investment of $1 billion in this technology within a period of 5 years in Venture Capital investment.
- 4. The financial service industry has spent $1.7 billion on the technology.
- 5. In 2018, an amount of $2.1 was spent all over the world on blockchain solutions.
Such investments are being made due to the benefits of blockchain, and it can be taken as the manifestation of the credibility that this advanced technology has earned.
Moreover, as so many blockchain technology companies are in quest of making the blockchain technology more advanced, a large number of businesses are firms are also in search of the possibility of improving their services with this. In this blog, we provide you with the 7 benefits of blockchain technology that makes businesses adopt this powerful phenomenon.
Top 7 reasons why businesses are adopting blockchain in 2019:
1. Blockchain offers enhanced efficiency
No requirement for intermediaries is one of the biggest reasons why businesses adopt blockchain technology, which not only reduces costs but also renders the whole process faster.
It is because by removing the nuisances created by the middleman in a functional system, you will definitely get everything done more quickly in the overall operational process.
Moreover, you don’t need the boring gathering of multiple parties in your decision-making process because blockchain technology can get all that through a few easy pre-set programming stipulations.
2. Advanced data security and protection against unauthorized actions
Hacker attacks have left the world in despair and fear. And, government, law, and financial organizations are always seeking for something powerful and reliable to cope with this issue. Blockchain turns out here as the finest solution to data security and unauthorized action issues.
Providing advanced level data safety and keeping unauthorized actions at bay can’t be underestimated as one of the benefits of blockchain.
Blockchain technology has been proven to be safer than traditional payments. Here, the best thing is that each party banking on blockchain can access to the entire database and its complete history.
There is no control of a single party over the data or the information. Every party is entitled to the verification of the records of its transaction partners directly; it doesn’t need any intermediary.
It can be extremely beneficial to track goods forwards in a supply chain when it comes to tracing where components are residing at the moment. Such important information about the component can be relayed from or to the new owner for any action.
This advantage is very well described in the Harvard Business Review article, “Global Supply Chains Are About to Get Better, Thanks to Blockchain.” Such benefits of blockchain have made it the perfect choice to deal with such risky issues.
If there is not transparency among parties, then it may result in delays in commerce activities and weaken a business relation. If every detail is offered among all parties, then it will make the commercial trust much stronger within the process.
In a nutshell, it will give birth to a healthier and stable relationship that is based on transparency instead of negotiation, and having this type of benefits of blockchain by both sides involved in any transaction will be so interesting.
5. The advantage of being economical
We all enjoy the comfort given by online payments, however, such fees can also lessen profits.
There are numerous services like PayPal and Shopify charge, ranging from 2.9 to 4.4, for what they provide, dependent on transaction place that is within or outside the USA. we must pay heed to chargebacks or monthly costs.
The biggest advantage of blockchain is the removal of a third party. Therefore, blockchain reduces or eliminates counterparty risks. You don’t need to bank on intermediaries like brokers, lawyers, and bankers.
6. It provides a better audit
There is a record of each and every transaction conducted on blockchain which is done sequentially and indefinitely, which extends an indelible audit trail for the life of an asset even between parties.
It is more important if source data is necessary for the verification of an asset authenticity. These days, the company called Everledger is benefitting from this to track diamonds, summarized in the article ‘How the blockchain is helping to stop the spread of conflict diamonds” in Wired magazine.
These kinds of benefits of blockchain have added more to its credibility.
7. Assurance of quality
If any irregularity is found or detected anywhere along the supply chain, the blockchain system can take you to its origin point. It makes easier for businesses to conduct investigations and take the actions required.
Let’s have an example of this in the food sector, where it is important to know the origination, batch information, and similar necessary details for safety and assurance of quality.
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And, there are other technologies which are related to blockchain technology like Ethereum, which is an advanced platform to develop a robust app. Having a reliable Ethereum Developer can be a very crucial and integral step towards taking own business to the next level.
We hope this blog to have given you a clear of the top 7 reasons why businesses are adopting blockchain in 2019. Here, we discussed 7 benefits of blockchain technology for business in and points like quality assurance, a better audit, being economical, transparency, traceability, better security, and enhanced efficiency came up.
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