How Will Blockchain Benefit Your Business Globally?

The global impact of virtually any choice one makes within their business ought to be recognized and appreciated. When we see the global scale impacts of seemingly small business choices, it is informative as to the next steps we should take. 

Blockchain is something that seemingly everyone is talking about these days. You hear about it everywhere, from the Wall Street Journal to casual conversations between everyday people. Yet, even though blockchain is frequently discussed, most do not fully understand its impact and power. One area that many of us could stand to gain more information about is how blockchain will benefit businesses in terms of global growth. Today, we will look carefully at how blockchain can aid companies in globalization. 

Strengthen Trust

The phrase "trust, but verify" was not first coined by former President Ronald Reagan but was made famous by him. He spoke these words shortly after signing the INF Treaty regarding nuclear weapons with Mikhail Gorbachev. This phrase is robust and must be considered when considering brand-new business relationships.

It is one thing to do a business deal with a company with whom you have previously had a working relationship. You have specific standards and expectations upon which you can rely. However, what are you supposed to do when dealing with a new business partner? You have no history of successful transactions with them, and you must figure out a way to establish trust on both sides. 

A blockchain is a valuable tool for situations like this. It creates a public but anonymous record of transactions that anyone can reference. Therefore, questions about payment or business dealings can be smoothed out more rapidly when one uses the blockchain to facilitate some of those transactions. 

Better Security

One of the most significant upsides of blockchain technology is that it has some of the highest-level security measures of any financial system. Techtarget.com explains what that security looks like: 

The enhanced security offered by blockchain stems from how the technology actually works: Blockchain creates an unalterable record of transactions with end-to-end encryption, which shuts out fraud and unauthorized activity.

The blockchain is also nearly impossible to hack, given that the data of all transactions is stored across a wide variety of computer networks spread throughout the world. Hacking and data leaks are significant concerns for businesses of all sizes, and these attacks are rising. CNET reports that data leaks increased by 68% in 2021 compared to the year prior. Therefore, it makes sense that many businesses want to find a way to conduct their transactions on a network far less prone to attack. The blockchain is the perfect candidate for that; it is where more companies are turning. 

Improved Business Credibility

Believe it or not, your business credibility might take a hit if you don't use the blockchain. It depends on the industry you are in and how people in that space view the blockchain, but the most cutting-edge businesses today consider the use of the blockchain as an essential aspect of getting work done. When they hear that a company is NOT using blockchain, they might begin to look at that company with a sideways glance. They will want to know why companies refuse to follow the latest trend. 

Brands that already understand the overwhelming benefits of the blockchain will want to shift to using it for virtually every transaction they conduct. If your company doesn't meet them where they are with this, then they may start to wonder what the issue is with your company. 

Eliminate the Middleman

Financial transactions have long been governed by intermediaries who stand between the various transacting parties. Those middlemen usually consist of banks and other financial institutions that have a stake in collecting fees from the people they stand between. This system benefits no one except the intermediaries, who get to take a chunk of profits to facilitate the transaction. 

The blockchain has completely disrupted that system by making it easier and faster than ever for two parties to transact directly. In some cases, the blockchain can conduct a transaction within seconds. The exact speed of transfer depends on various factors, such as how much traffic there is on the blockchain when you attempt your transaction. However, using the blockchain to perform transactions is far faster than relying on conventional methods requiring a third party. 

Conventional transaction methods require as many as several days to complete a transaction. The blockchain gets it done much more quickly than that. Best of all, you can avoid the fees you would have paid an intermediary in the past. 

Unchangeable Record

There are certain situations in life in which it is necessary to have an undisputed record of events. For example, such a record is beneficial for court proceedings. It is also essential for business transactions. Everyone must be on the same page and agree to a basic set of facts about any transaction. Thus, the need for the blockchain. 

The blockchain keeps a complete and unchangeable record of all transactions at any time. No matter who you are or the type of transaction you need to do, it will always be stored on the blockchain for all time. 

Recently, Sweden decided to work on a project to use the blockchain to log all real estate transactions within the country. They are simply that confident in the ability of the blockchain to store critical data and information at all times. Thus, they decided to keep all real estate transactions on the blockchain forever without dispute. That is a testament to the power and utility of the blockchain. 

An Innovative Solution for the Future

The blockchain is how financial transactions will be processed in the future. There is little doubt now that this will be the case. Those who have seen the light and understand what the blockchain can do are rapidly moving forward to incorporate it to solve more and more problems. This is good news for the world because it means that specific issues that have seemed intractable for decades may finally get solved. 

Interestingly, the blockchain is even being used to solve non-financial problems. For example, preliminary studies are underway regarding how the blockchain may be used to verify the information presented on a resume or credit application—sorting through applications that deliver 100% truthful information versus those that overstate specific facts used to be the role of a real human being. However, the blockchain may be capable of automating some tedious work to free up more time for humans to do more complex tasks. 

There are myriad of uses for the blockchain that probably haven't even been dreamed up yet. It is undoubtedly an exciting time to watch this innovative solution flourish. If you would like to learn more about the blockchain and how it is changing the course of business worldwide, please contact us at Think Global Forum. We are constantly updating our readers on the latest details about the power of globalization and international marketing.