Five ways blockchain technology can improve your business model
When it comes to transacting with customers and businesses, many business owners still use third-party middlemen.
I know you do too.
When it comes to transacting with individuals/businesses in foreign countries, most business owners still use traditional in-bank money transfer methods.
You know the problem with these methods of business operation?
They’re time-consuming, and they often lead to a waste of money and resources.
The good news, however, is you can use blockchain technology to replace some of these traditional methods of operation, thereby saving your business quality time and money.
1. Through smart contracts
Smart contracts are a type of contract, which are written into lines of codes so that once the conditions written in the codes are fulfilled, the contract executes automatically.
They are generally known to speed up business transaction processes by removing third-party intermediaries from the equation.
For example, let’s say you’re in the business of manufacturing and selling products. You can use smart contracts to sell and distribute your products to customers.
All you have to do is set up a smart contract using a tool like SYMBOL.
From your company, to the freighter sailing overseas, to the storefront, smart contracts automatically release products to the right person once all the conditions of the contract have been met. This way, you create a hands-off approach (no need for middlemen) to supply chain management and product tracking.
Click here if you want to learn more about what is Symbol and how you can use it to set up smart contracts.
2. Eliminates the challenge of currency conversion
If your company is in the business of executing foreign transactions (selling to people overseas), you will have experienced firsthand the challenge of selling to people in their local currencies and then losing a few bucks in the process of converting the funds into your own currency, which is most likely dollars.
With blockchain technology, you can bid this challenge good-bye.
Blockchain technology is the platform upon which cryptocurrencies are built. Now, by adopting this technology, you can start receiving payments from foreign customers in crypto and then convert the funds directly into dollars.
Interestingly, you can even use bitcoin as the mode of payment for local customers in your country. It is smooth, fast, and transparent.
3. Payment for transactions are easier
Formerly, when a company wants to complete transactions with other businesses, they usually send the money through the bank.
But as we both know it, it often takes hours/days before banks complete these transactions. Not to mention banks might charge extra fees as well.
Thanks to blockchain technology, businesses no longer have to endure this.
Suppose you run a manufacturing company, and you want to transact with another company that will supply you with raw materials.
By harnessing the power of blockchain, you can pay this other company.
All you have to do is get them on the same blockchain network as you. Anytime you need to pay them, they just lay claim to the funds via the network.
Seeing as you’ll likely be patronizing this other business for the foreseeable future, it makes sense to ask them to join the same blockchain network as you.
4. Makes marketing campaigns easier
Blockchain technology also finds importance in the area of marketing.
The technology helps marketers to keep a real-time track of client information and customer behavior.
How you wonder?
Blockchain facilitates reliable identity management. Your customers and your employees have digital IDs that make it easy to verify their identity.
Now, with these identity details, as well as their history on the blockchain, it becomes easy to craft a campaign that’s perfectly tailored to the demands of customers.
In the end, this helps marketers create effective campaigns and drive greater ROI.
5. Makes it easy to hire the right people
One of the biggest flaws in the traditional model of doing business is in the area of recruitment.
Many times, job applicants forge data and submit falsified records to employers while applying for jobs.
The reason they’re able to do this is because they know there is no way the hirer can verify whether they truly have the things they claim they have or not.
Thanks to blockchain technology, there is a way out here for job hirers.
Blockchain technology can provide you with easily verifiable records of a potential employee right on the spot.
Talk about academic history, crime history, extracurricular activities, past employment records, and what have you; all these are stored for you on an immutable digital ledger.
That’s the power of blockchain.
Story by Uday Tank