How Blockchain is Taking Over Business Systems

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Blockchain technology and smart contracts are taking over every area of business practice.

Blockchain technology is increasingly moving into the business realm, with a large number of new technology applications being released. Because of the complexity of processes in legacy systems, and the relative simplicity of Blockchain technology in producing the same results, companies are flocking to meet the burgeoning need.

Blockchain for agreements

Further, the rise of smart contracts has produced the ability for B2B agreements to be drawn, ratified, and settled in near real time without the hassle of lengthy time delays. Smart contracts allow businesses to interact, place and fill orders, and even manage payments upon delivery, all from a single source, and with a simple wifi connection.

Of course, the rise of smart contracts has led to a huge demand for Blockchain technology-proficient programmers, as evidenced by the bump in job demand on some platforms. However, better UI systems are coming online to offer the same functionality, but with low technical entry barriers.

Blockchain for efficiency

The basis of Blockchain technology is the foundational principle of transparency. This underlying core principle – that the distributed ledger is transparent – drives newfound levels of efficiency for businesses willing to utilize the platform.

Transparency eliminates the need for checks and balances in business, and reduces costs to insure accuracy. Full transparency (with the built-in security of Blockchain technology) effectively decimates corruption within business. According to Jim Preissler, CEO of trade.io:  

“We understand the increased value and potential of effectively integrating Blockchain into business practices.  The very principles underlying Blockchain technologies – such as those of transparency and efficiency – can ultimately contribute towards reduced costs and increased democratization for markets and businesses alike.”

Blockchain for payments

Business to business (B2B) payment platforms are traditionally tedious, and often require multiple parties and several days to settle. With Blockchain technology, however, companies are able to make quick payments without the hassle of legacy systems, but with all the same legal requirements intact. According to one researcher:

“Blockchain can be leveraged for settlement and payments… Hence, the process of KYC between clients and businesses can be improved in order to ensure that investment flows swiftly across borders in order to take advantage of time-sensitive market information.”

This transition to Blockchain technology will undoubtedly be tedious. However, the power of a distributed payment platform will inevitably begin to take greater levels of ownership of the marketplace.

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Author: Jon Buck

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