Blockchain is a sophisticated algorithm that was originally created for crypto currencies but now is being widely adopted across industry verticals. For B2B companies, blockchain technology serves as a virtual bank, allowing movement of money and completion of transactions. Since blockchain is open to all members of the network, it enables better multi-party collaboration and improved supply chain efficiencies. Blockchain technology engages new realities presented by the Internet of Things, like expanding data flows. Smart contracts are the most transformative blockchain applications that automate the transfer of money and other assets on meeting the conditions negotiated.
Validated and immutable record of data With blockchain technology, we can reimagine a world in which contracts are embedded in digital code. They are stored in shared database and safeguarded from tampering, revision and deletion. Every agreement, process and task has a digital record and signatures that could be validated and shared. Intermediaries like bankers and brokers might not be necessary as algorithms will freely transact and interact with one another with little friction. Use case – blockchain in healthcare Various businesses are experimenting with blockchain in different forms. A blockchain used in financial services could be private, or a hybrid one that makes use of its decentralization features with the traditional model of non-blockchain world that the bankers are used to. Smart contracts in healthcare could trigger an insurance payment to a physician when the patient undergoes a MRI scan. Blockchain technology provides secure place to store electronic medical records. It will have details of all patient-doctor communication and treatment. Every subsequent visit by the doctor would be added to the blockchain, including those in other cities. This way, a complete, historical record of the patient’s health will be maintained. In such cases, blockchain is private, and only the member participants would have the encryption keys to see the medical records. Overcoming the issue of trust deficit The biggest advantage of blockchain technology is its ability to make something digital into a tangible asset that can be owned as well. As it provides unique and trackable identity to an online assets, these can be collected, traded and sold with ease. Trust is essential in a B2B sales process as relationships are ongoing and usually have a longer sales cycle than B2C sales. Blockchain technology allows for the expedite creation of trusted relationships at lower cost. The value proposition of blockchain is that it takes out the intermediary transactions, allowing more autonomous types of business engagements. It replaces banks, credit card processing and checking, resulting in the reduction of cost to B2B vendors.
Digital first Blockchain allows something that exists purely in a digital sense acquire its own unique identity and value. The technology has opened doors for a new form of creativity – Digital first. Blockchain and its smart contracts are not only going to expedite the business processes but also improve our lives, as they operate in the background. The technology is going to revolutionize businesses and redefine economies. But, for this technological revolution to succeed, technological, organizational, governance and even societal barriers have to fail. Group50, the leading business consultancy is developing blockchain that utilizes hyperledger and Internet of Everything, giving you the ability to control access to crucial data through smart contract. Contact Group50 to know how blockchain can help you in some critical supply chain use cases related to food, automotive, compliance and regulatory, and more.