Blockchain leads the path towards the business innovation. In this article you can read about 5 possible applications of blockchain and discover how you could integrate blockchain in your business and streamline your company processes.
1. Supply-Chain Communication
Supply-Chain is a network between a company and its suppliers to produce and distribute a specific product. Today, most of the products are not made by a single company but by a chain of suppliers that sell their components to a company that produces and markets the final product to customers. If one supplier fails to deliver a component to the company, the production might experience delays or be even stopped, which has significant financial and reputational impact on the company. As an example, luxury car manufacturer, BMW, recently suffered production stoppage of its 3-Series sedan in Germany, China, and South Africa, due to Bosch’s failure to supply the necessary steering gears.
Blockchain could help to prevent these kind of incidents from happening by eliminating administration work and improving efficiency. This could happen by sharing information on the blockchain about manufacturing process, assembly, delivery, and maintenance of products among suppliers and vendors. Mærsk together with IBM have already launched a demo blockchain-based supply chain solution to increase integrity and transparency.
2. Loyalty Programmes
Customer loyalty programmes are a good source of revenue for the businesses, however, they still require a well planned structure and management. Often, customers end up with a labyrinth of point systems and redemption options, with a cumbersome process of exchanging points among programme partners. Here is where blockchain can help to streamline the process of loyalty programme management and enable frictionless customer experience.
Blockchain technology could enable customers to store their rewards points received from an airline in a digital wallet and use the same wallet to redeem the points for a hotel reservation. Loyalty programmes providers could set up reward applications that connect the loyalty network to execute transactions for customers. As a first step towards blockchain adoption in loyalty programmes, Loylogic, the global leader in e-commerce and e-payment solutions for loyalty programs, together with Coinify already offers Bitcoin as a redemption option to millions of loyalty program members.
3. Smart Contracts
For example, if we look at the real estate industry, buying or selling a property can be a cumbersome, opaque and expensive process due to the involvement of multiple stakeholders. Paying and depending on all these parties make real estate transactions very costly, inefficient and slow. Blockchain can remove these intermediaries. All the necessary data for the real estate transaction could be stored in the blockchain database in forms of smart contracts.
With smart contracts businesses will be able to bypass regulations and lower the costs for a subset of our most common financial transactions. Additionally, these contracts will be unbreakable.
As an example of how contracts can be stored on blockchain, Coinify together with Nets has developed a Proof-of-Concept for buying and selling a house on blockchain that is currently touring a Nordic region and arousing interest among banks and real estate companies.
4. Payments and Money Transfer
Nowadays, transferring money across borders can be very costly and take several days. For companies that have remote employees or involved in the global marketplace, blockchain-based money transfers would be very useful and cost cutting. Send and receive payments is the most well-know blockchain application after all. Blockchain technology eliminates the intermediaries that slow down the process of sending and receiving funds across borders and in this way prevents the intermediaries from charging high transaction fees.
The benefits of sending money across borders through blockchain network, have lead to the launch of Bitcoin startups in countries like the Philippines, where remittances from the overseas Filipino workers contributes more than $26 billion to the economy.
5. Digital Identity
Security is the top concern for businesses of all sizes. Nowadays, fraud is estimated to cost industries around $18.5 billion annually. Current methods for identity verification use problematic password-based systems that are stored and exchanged on insecure platforms.
On the other hand, blockchain-based authentication systems are based on irrefutable identity verification using digital signatures based on public key cryptography. Blockchain technology can therefore make verifying identity both secure and efficient.
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Image credits: Geralt (Pixabay)
To learn more about blockchain applications across different industries, visit Coinify Newsroom.