Blockchain has shown up in many areas in people's lives, from money transaction, to game entertainment and to their business development. We all can’t deny the benefit that Blockchain technology has brought to our lives, to the whole economy, and to many entrepreneurs. Now, in this article we will show you how people adapt this technology into their business, and in which fields that Blockchain technology can be most efficient.
Since Blockchain finds its root in cryptocurrency, it would only make sense if it can be used as an application for compensating employees. If a particular company pays wages to their international workers, then incorporating Bitcoin into the entire payroll process would be a major cost saver. Payments that are made by a bitcoin can save both time and money for employees and employers alike. Other than paying the international workers, there are also contractors, full-time employees, and remote employees whose payment needs to be cleared. This kind of payment is something that most of the big companies are betting on this year.
Delegated Proof of Stake (DPOS) is an efficient, fastest, flexible, and most decentralized consensus model available. It leverages the stakeholder’s power of approval voting for resolving consensus issues in a democratic and fair way. All the network parameters, right from fee schedules to block intervals, can be tuned via elected delegates. The selection of block procedure allows confirmed transactions in just a few seconds. The consensus protocol is mainly designed to protect all the participants against unwanted regulatory interference.
Banking & Finance
The BFSI sector is currently leading the Blockchain industry and will reap all the benefits in the near future. The main focus of setting up banks is to create connected groups of people in secure and transparent communication between trade and commerce. Blockchain acts as a tool that will help to accomplish such things on a global scale.
Blockchain technology in international or cross-border payments can enable secure transfers between multiple bank ledgers. This allows one to bypass the banking intermediaries who serve as a middleman for transferring money from one bank to another. By implementing Blockchain technology in banking for international payments, transactions become quicker, secure, and cheaper. It also ensures end-to-end visibility anywhere around the world.
The capital market industry is currently going through huge changes in business dynamics due to technology-led market disruption, regulation, and transformed economics of the core business areas. With the advent of Blockchain, capital market companies have already moved into the next level of disruptions. The impact and benefit of Blockchain could be for reaching the capital market across the selling side, buying side, and market infrastructure with a promise of reducing or eliminating the role of intermediaries.
Trade finance offers the payment guarantees credit and insurance required to facilitate transactions on terms that would satisfy all the parties. But one of the major difficulties involved with the trade finance sector is the huge volume of paper documents which make up much of the information flow between the trading parties.
Blockchain technology has the potential to change the entire business process by redefining the value chain interactions, reducing transaction costs, and eliminating operational complexity. Blockchain technology thus entails a distributed database that autonomously maintains a growing list of transactions recorded in units known as blocks secured from revision and tempering.
Money Laundering Protection
Blockchain technology possesses several inherent characteristics that can actually prevent money laundering. Every transaction that is done over Blockchain leaves behind a trail of permanent records that is impossible to alter or change. Thus, it makes it extremely easier for the authorities to track the main source of the money.
Regulatory Compliance and Audit
Blockchain helps in incorporating regulators more seamlessly. Cooperating with regulatory agencies is quite a hassle. Audits and processes that require businesses to virtually put their business operations to a halt are every owner’s nightmare. But fortunately, Blockchain holds a better promise. Let’s take a look at a small example so that you may imagine the whole story easier: A company called ABC has made its only mission to streamline the entire regulatory process, especially in the finance sector. Instead of keeping physical files that can be fraudulently lost, altered, or damaged, ABC company built its Corda platform in the Blockchain. Corda allows the regulators to be provided with access to record financial transactions in order to verify the fees that are being paid, proper signatures being collected and operations being gently conducted. As you can see by implementing Blockchain technology into its business this company has avoided many risks.
P2P or Peer-to-Peer is a technology that is actually based on a simple principle and that is the concept of decentralization. The Peer-to-Peer architecture of Blockchain mainly allows cryptocurrencies to be transferred globally without any need for intermediaries with a distributed peer-to-peer network. Anyone who wishes to participate in the verifying and validating process of the blocks can set up a bitcoin node.
Blockchain has the ability to automate claim functions while verifying coverage between the reinsurers and the companies. It will also automate the payments between the parties for claims and thereby lower the administrative cost of the insurance companies.