Blockchain is one of the most promising technologies with the ability to bring revolutionary changes in many spheres of society. This decentralized, self-autonomous technology doesn’t need any human intermediaries which makes it immune to corruption. Moreover, the interlinked data and timestamps for every transaction make it easier to track the history of any transaction. In simple, non-technical terms Blockchain can be called a decentralized ledger that can be accessed by anyone but unauthorized people can’t read the data- thanks to cryptography-based security. Moreover, changing data is not possible as all the related data blocks are interlinked and one needs to change the entire range of data which is practically not possible.
Being decentralized also ensures public transparency which means any corruption or change in data is instantly visible to the community. In that way, Blockchain can be a game-changer technology that provides transparency without affecting privacy or compromising the security of data. There are different fields in which Blockchain technology can be used. Most people already know about Blockchain’s use in cryptocurrency. Here are other fields where Blockchain can be used:
Maintaining the integrity of Donations
Across the world, there have been many kind citizens donating to worthy causes but a huge portion of such donations are siphoned away by intermediaries. Even the system records cannot help in reducing or uncovering such scams as these systems are also operated by corrupt officials.
Blockchain can help in reducing these scams by eliminating the human factor from the entire environment. Moreover, the Blockchain also helps in tracking the donations made by the people. It simply means that you can have a phase-to-phase real-time record of where your donations go and how is it being utilized.
On one hand, it will discourage the misuse of your donations and on the other, it will also make you feel good to know the needy people or community who have benefited from your donations. On a larger scale, it will also help in closely connecting more people to such welfare causes and building long-term relations. For instance, if you know that your donation is utilized for offering a 2-time meal for a poor family for 1 month, it is more likely that you would donate again when the month is over.
Making shared riding easier and cheaper
Taxi booking apps charge certain mark-ups over the base prices of suppliers. This margin covers the cost of operations, systems, and manpower, among others. You may also have noticed that the charges to the same distance rise during high-demand instances/peak hours thus making the rides more expensive.
A significant portion of operational expenditure is on running the platform and securing the customers’ database which needs sophisticated software and dedicated manpower.
With the Blockchain system, P2P apps can be developed that can minimize the costs with its in-built security and transparency. Moreover, it can also automate the payment for different on-road expenses like parking charges, fuel costs, toll tax, etc. Moreover, it will also aid in reducing pollution by incentivizing the car owners to sell their rides to the people going to the same route thus reducing the number of vehicles on the route.
Maintaining precision in the accounting practices becomes challenging for businesses having their branches in different nations. Along with natural differences in the general accounting practices- as per the taxation, business laws, etc., it is also difficult to have ready access to the updated records of transactions. It also demands constant to-and-fro communication across the hierarchy to keep different accountants on the same page. Things become more complicated as they travel up the hierarchy level where a central authority needs to review, authenticate and approve the key transactions and look for any gaps or compliance issues that differ from country to country.
Being essentially a digital ledger with immutable records, timestamps, and easy accessibility the Blockchain technology can help in maintaining accuracy, automatic transaction recording, and building a tamper-proof tracing route to investigate any transaction. Moreover, its cryptography-based security and decentralized ecosystem ensure that no human authority- regardless of their position, can corrupt or change the data. It also relieves auditors from manual account checking.
Increasing operational efficiency
Lack of operational efficiency is among the major causes behind the failure of a business. Especially the start-ups and small or traditional businesses struggle with this issue. Also, many businesses try to expand their presence in different countries or explore new markets but find it difficult to adapt their operational procedures to align with the demands of the new working ecosystem.
With the help of Blockchain technology the businesses can set answerability, secure different processes, and build a strategic hierarchy level to distribute relevant rights to the employees as per their position and performance while keeping the key responsibilities secured with top-level management. Also, the tracking capabilities of Blockchain can help businesses to trace the errors or identify the employees or processes responsible for mistakes or business losses. It will allow the companies to constantly improve their operational capabilities and build new competencies. In that capacity Blockchain will play an imperative role in the success of small businesses.
Lowering currency/inflation related risks for businesses
Currency changes and inflation rates have a direct impact on the revenue capabilities and sales potential of companies. The businesses of countries with high volatile currency or fast-changing inflation index thus find it difficult to continue their operations there. Here the Blockchain-powered cryptocurrency can help them enjoy a shield against such uncertainties. Likewise, the fluctuating credit rate which can adversely affect the businesses with an international presence. Blockchain-powered cryptocurrency can protect such businesses from fluctuating credit rates. It will not only encourage more businesses to flourish but will help- to some extent, in strengthening the economical conditions in countries with political unrest or economical uncertainties.
Blockchain is a sophisticated technology with complex architecture and high-end capabilities. It helps in decentralizing the system and building a digital public ledger. Immutability, transparency, and decentralization are some key benefits of Blockchain technology which saves the data from being manipulated or corrupted. These capabilities make Blockchain an ideal technology to improve transparency and security in the digital world. When used strategically the Blockchain can help in bringing welcome reforms to different fields of society and business.