12 reasons why your company cannot do without blockchain

The debut of Bitcoin in 2009 also made blockchain a hot new star. Blockchain is a virtual shared ledger with the potential to disrupt a variety of industries, including payments. In fact, the advantages of blockchain are so significant that companies that have been slow to start researching related technologies are out of place.

If you still don’t believe it, here are 12 reasons why your company can’t live without blockchain.

1. Prevent payment scams

The function of blockchain to prevent payment fraud has always been a hot topic. This function can be achieved in the following ways:

(1) Smart contracts ensure that both parties comply with the terms of the contract by creating a third-party escrow system.
(2) The immutability of the blockchain’s public ledger means that all malicious modification, forgery, and double-spending attempts are doomed to failure.
(3) The decentralized nature of the blockchain avoids the risk of manipulation by central institutions.

While blockchain cannot 100% prevent scams or security threats, it is definitely a more reliable and secure option compared to existing systems.

2. Promote internal cooperation within the enterprise

Alex Tapscott wrote in Harvard Business Review:

Today, collaboration tools are changing the nature of work and management in the enterprise. But current collaboration tools are clearly flawed because we still rely on central institutions to establish trust and coordinate.

This is a great opportunity for blockchain systems. For example, each employee's personal information should be kept by themselves and the company, rather than directly handed over to large social network companies. Because compared with existing networks, blockchain networks are more private, more comprehensive, and more flexible.

3. Cross-border integration

Blockchain can also facilitate collaboration between companies, which EY calls "cross-border integration." This means that one or more parties can leverage the assets or capabilities of their partners to create new business value. Sounds good, right? The assets or capabilities of any one party will not be affected, helping them achieve their own business goals.

4. Open Markets

Blockchain can facilitate the development of various emerging markets, such as 3D printing. Although this technology can revolutionize the mass customization industry, it still requires a central platform to sell products and protect intellectual property (IP).

Tapscotts explained:

With blockchain, data and ownership holders can store any physical object. This will open up large-scale production while protecting intellectual property rights. Both buyers and sellers can explore more emerging markets in this open market environment.

5. Cut out the middleman

Remember, blockchain is a P2P system. That is, a transaction involves only the sender and the recipient. This peer-to-peer system enables low-cost electronic currency transactions without any geographical restrictions. For example, if your company is in the United States, your Chinese customers use the blockchain system to make payments. Unlike traditional banks or financial institutions, this system does not charge additional fees.

Blockchain can also remove third parties. For example, in real estate transactions, blockchain can simultaneously play the role of traditional lawyers, real estate agents and banks, not only saving business costs but also reducing transaction time from 1 day to a few hours.

6. Promote the development of the Internet of Things

Currently, the most promising technology besides blockchain is the Internet of Things (IoT). The combination of blockchain and IoT can automatically register ownership and maintain equipment, which can not only completely solve security problems, but also enable the equipment in the network to automatically repair itself after receiving instructions.

7. Higher data quality

Blockchain data is "complete, coherent, valid, accurate, and widely used." This high-quality data can help you make more informed business decisions and monitor real-time business events, such as payment collection, logistics information, and customer information.

8. Real-time transactions

As mentioned above, blockchain is a decentralized P2P system. This means that the processing of contracts and transactions no longer takes days or weeks, but can be completed almost in real time. This feature of blockchain will definitely help improve capital liquidity and promote the rapid listing of corporate products.

9. Cloud storage quality

Cloud storage has become a necessity. However, you have no control over where your important information goes. How many people can view your private information at will? What do they do with it? In fact, your private information is in the hands of companies such as Google, Apple, Dropbox or Facebook. If you are a privacy-conscious person, you definitely don't want to continue using the services provided by these companies.

The keys on the blockchain can ensure the security and privacy of information. Blockchain cloud storage companies like Storj even charge less than Dropbox.

10. Performance-based pay

Performance pay is a bonus system for employees, and the specific amount depends on the employee's performance. With smart contracts, companies can automatically distribute bonuses through specific performance contracts.

11. User Rewards

In addition to rewarding employees, you can also use blockchain to reward loyal users. Since blockchain transactions are recorded on a public ledger, customers can also participate in the points transaction in the loyalty program.

Customers' points can be used in different ways, for example, redeeming airline points for coffee or making online purchases.

12. Compliance

Since the economic crisis of 2008, regulation and compliance issues have become increasingly important. In fact, the emerging industry of regulatory technology (RegTech) has rapidly emerged. The popularity of blockchain can ensure the security of transactions while ensuring that companies have the latest regulatory information.

In addition, blockchain can also play an important role in KYC (Know Your Customer) and AML (Anti-Money Laundering).