Traditional businesses have numerous loopholes that affect daily operations while also draining money. For instance, business owners have had experiences whereby they generate colossal revenue by serving a ton of clients and end up with little in their bank accounts.
While this may seem normal in the business world, it isn’t. Due to procedural deficiencies, third-party fees, and human errors, these business owners are losing money. Of course, a company that can eliminate these problems stands a better chance of staying afloat for an extended period, but how possible can this be?
By adopting blockchain technology, organisations can plug loopholes affecting traditional businesses and make their processes faster, cost-effective and efficient. Going forward, we will explore how blockchain can help businesses evolve in the coming year.
Smart contracts are automated contracts in which all parties’ terms are written as lines of code.
The code (contract terms) exists on a decentralised blockchain network. Therefore, the contract executes automatically once the written conditions in the code are fulfilled.
Smart contracts run without downtime and interference from external parties. And as a result, it speeds up business transaction processes.
So, how do smart contracts ensure your business gets more value? Well, that’s easy!
It ensures parties to the contract get paid once they deliver on their end of a deal. In addition, your goods/services are returned should the other party back out on short notice.
So, that eliminates the need for attorneys, law enforcement, or other fee-charging outfits to settle disputes.
Make Easier, Faster Payments
Traditional payment modes are flawed with delays and outrageous fees that potentially stagnate business processes. Adopting blockchain technology is the key to mitigating the challenges mentioned above.
So, suppose your business wants to transact with another business that will supply raw materials for your products, blockchain technology can help. Just onboard them on the same blockchain network that you use, and anytime you want to initiate a payment, they’ll just claim the funds on the network.
If you sell to foreign customers, currency conversion can be a pain in the neck! But blockchain technology obliterates such barriers. By receiving payments in cryptocurrencies, you get paid without losing funds to fluctuating exchange rates. You can even set up crypto payment modes for local customers too!
And finally, you can compensate your foreign/remote employees using cryptocurrencies. It’s fast, easy, transparent and cheap. In addition, making payments on a blockchain network means you’ll have records of all transactions. That allows you to track cash flows and keep your books in order for the next tax filing season.
Hire the Right People
Talent recruitment can be daunting for any business. Job applicants often forge data and submit false records to recruiters while applying for jobs.
That is possible because they know that the hirer will find it difficult to verify these claims. But thanks to blockchain technology, recruiters are now better armed.
Blockchain technology can provide verifiable records of prospects instantly. Whatever you need — academic records, extracurricular activities, crime history, past employment records and more — are stored on an unmodifiable digital ledger.
Blockchain technology is taking over everyday business processes. So why not stay ahead of the curve by trying it out. You can gain a headstart on your competition by harnessing blockchain technology’s power.