Bitcoin and blockchain technology have been hugging the headlines as of late.It’s crazy to think that seven years ago, the said type of cryptocurrency traded for a mere $1. Yet recently, a bitcoin was traded for an eye-popping $16,000.
While entrepreneurs may not be interested in purchasing this cryptocurrency as a form of investment, they may be concerned about the technology that makes it possible. Blockchain, the virtual public ledger where cryptocurrency transactions are recorded, can yield the following benefits to businesses:
Blockchain benefit 1: Supply chain management
Blockchain technology can have a big impact on supply chain management. It offers benefits such as cost-effectiveness and traceability. Simply put it, blockchain can be utilized to track movements of goods. This can bring about transparency in the business world while simplifying process like ownership transfer and payments.
Blockchain benefit 2: Quality assurance
Blockchain can be used to detect and investigate irregularity in any point of the supply chain. This can make it easier for businesses to find out the source of the irregularity and more importantly, to undertake necessary actions.
For example, the source of a salmonella scare can be traced in seconds. The firm that handled it can then flag every single bag from the batch and remove it whether it has been packed in a processing plant or already in the retail store.
Blockchain benefit 3: Accounting
Since transactions are recorded in blockchain, it practically eliminates human error. Data is also protected from possible tampering. Records are also guaranteed to be accurate because these are verified each time they are passed on from a blockchain node to another. This can also leave a traceable audit trail.