Blockchain is shifting the landscape of business logistics by offering alternative options for secure data storage. The trending and admittedly revolutionary method of data encryption is allowing major corporations the opportunity to better protect the data they send to business partners and clients.
“Blockchain provides a boost in logistics performance all over the world,” explains Todd William, founder, and CEO of Reputation Rhino, an online reputation management company and digital agency based in New York City that provides public relations and crisis communications support to some of the best-known companies in the blockchain and alternative currency space. Here you will find a brief overview of how businesses are taking full advantage of Blockchain’s incredible technology.
Blockchain And The Business World
For those unaware of Blockchain’s abilities and how they impact business, there is one word to know, and that is security. Blockchain helps encrypt data in such a way that it cannot be easily changed or deleted. Think of Blockchain as a collection of securely exchanged data between parties, where each party holds a full and authentic copy of that data.
Blockchain has become a hit in the financial sector, where sensitive information is continuously exchanged. Businesses are seeing that securing their data can save them money and time throughout the year. IBM is already promoting blockchain technology for business.
Tied Up Funds
Consider that many companies need to transfer funds and sensitive data regularly, and sometimes to make a secure transaction can mean days of processing. Many companies have invoices that are tied up due to security transfers; these bills can hang for as long as forty days at a time, which is a lot of money just sitting there. Blockchain allows businesses to transfer information and funds in such a way that they are secured, facilitating transactions, and reducing the time they take.
Take an industry like transportation as an example of the high cost of administrating paper transactions. This industry has seen double-digit rises in the percent of its administration costs due to its long-known over-reliance on paper transactions.
Blockchain can help these logistics by encrypting data and storing it in databases that are easily accessible to authorized users, making the transfer of said information secure as well. ShipChain sees the proven value of Blockchain in logistics. Businesses can save themselves a lot of headaches and even more money in the long run.
Any kind of transaction can be tracked with Blockchain in a manner that exceeds today’s standard tracking programs. Delivery services like FedEx or UPS who promise same-day delivery find that their tracking systems are not always reliable and typically lag behind.
Blockchain allows for information to flow to all parties involved in the process and ensures that each update is accurate and timely. The Transmetrics blog points out that major retailers like Wal-Mart are already using Blockchain to secure and track their shipments.
There is nothing more valuable to businesses than information that they can rely on. Logistics runs smoothly when a company can log, share, and backtrack on information quickly to make business decisions.
Blockchain allows for coordination of records on a shared distributed ledger; this ability affects many logistics areas in various industries, speeding up the time it takes employees to complete tasks since all information is readily available.
Each industry is different, and therefore, it can be challenging to predict how soon Blockchain will be implemented on a global scale. What is known so far about Blockchain is that it aims to become a centralized system where information flows freely and now more secure than ever.
Many individuals are dubbing Blockchain “The New Internet” due to its aim of worldwide communication. China’s major commerce site Alibaba announced recently that it had integrated Blockchain technology into all their cross-border transactions.
The Future Looms Large
If, indeed, Blockchain is implemented on a massive scale in the coming decade, it will create a seismic shift in how the world does business. Today, companies are already hard at work to develop centralized shopping hubs where people can choose from retail giants like Wal-Mart and Amazon, with Blockchain and cryptocurrencies at the forefront of these hubs. Businesses are being offered an alternative approach to logistics, one that can prove to be revolutionary.
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