Mainstream Companies are Leveraging Blockchain: Report

We all are familiar with Blockchain and its working. For a brief, Blockchain is a decentralized system which is used for transactions of valuable assets. That is every person associated with a blockchain has a copy of the blockchain, which makes it almost impossible to tamper a blockchain. It gives some advanced security functions which makes it reliable and trusted.

But thinking practically, how are companies actually leveraging the blockchain? Let’s look at the possible ways:

Smart Contracts

Consider buying a house and think of the final document, which when signed, the contract gets finalized with all the terms and conditions. That contract majorly includes the price of house, payment method, number of installments and the amount of each installment, some security measures such as what if money is not paid on time, or any case of fraud etc.

Similar to this contract is a smart contract but in a digital form. You cannot sign it practically but agree to it. Smart Contracts are in the form of a digital code which states all the conditions and if agreed by both the parties comes into action. Companies make use of these smart contracts to make use of blockchain.

Smart Contracts eradicate the need of third parties to evaluate and execute and minimize the fraud risks. Companies beforehand code the terms and conditions in smart contracts and release it. It is important to keep in mind that not all smart contracts are legal contracts but can become legal once standardized and legal codes are applied. Almost every company using blockchain makes use of smart contracts.

Transparent and secured financial transactions

Finance industry has made the use of blockchain in the best way. Well, any company of any industry can, but here talking of the financial industry, all the transactions are made through blockchain. This provides highly reduced chances of risk, corruption, higher levels of security and record keeping abilities.

Blockchain makes sure that every transaction is transparent and everyone including the one who invested can track their money at any given point and make sure that it is used wisely and his money is safe, which centralized exchange systems lack. Blockchain proves to be time saving as well. For example, banks use blockchain for the KYC process and to identify and verify the client and keep a record of it.

Also, the bank shares it with other banks so that if the same person applies for any service in some other bank, that bank need not to redo the whole process again and save time.

Efficiency and effectiveness of the supply chain

Companies make use of blockchain to increase the efficiency of the supply chain and thereby decrease the losses and chances of blunders and deliver quality products to consumers.

Today, the connectivity of supply chains is very important as different raw materials exist in different locations and all need to be tracked and stored in a warehouse which then needs to be packed and delivered to the customer.

Whole of this process is very interdependent and every step needs to be tracked every time to ensure smooth functioning. Also, a small mistake in any of the steps can lead to huge losses. Blockchain provides this advantage to track all the fields simultaneously at every given point and have the reduced risk to a great extent.

Multinational companies like Walmart use the same technology and stats show that the time when walmart started using blockchain had grown exponentially.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing