Blockchain is a powerful and innovative technological advancement that has propelled the security effectiveness of crypto-currencies to a new level. Nevertheless, this new technology is not exclusively applicable to the field of crypto-currencies.
Blockchain is full of potential and is capable of improving the efficiency of business operations for any company that chooses to adopt it. It can add tremendous value to these businesses with its many benefits.
There are countless ways for businesses to boost their growth and contribute to the sustainability of their economy in the long run just by adopting blockchain technology. All the concepts of Web3 and the Metaverse should not be ignored as well.
Using blockchain technology to make money
A company that wants to succeed and evolve must constantly analyze not only its activities, but also the behavior of its customers (and competitors) and the state of the market in which it operates.
It must also use all these elements to optimize its production processes in order to increase its market share and revenues. This is a process that the majority of successful companies apply to the letter.
According to several analyses conducted by experts, integrating blockchain-based solutions can help boost a company’s revenue significantly. The new technology could help companies improve the production and delivery of existing products and by unlocking innovative offerings that would allow them to reach wider audiences.
This is an idea that many companies are already considering as Amazon recently introduced the Amazon Managed Blockchain service. The latter allows Amazon customers to access and develop public and private networks within Amazon Web Services.
The case of banks
This allows it to offer exposure to Bitcoin and Ethereum to its clients looking to diversify their portfolios. These initiatives will give the bank the opportunity to build customer loyalty and strengthen its brand image as a tech-savvy company. An image that undoubtedly has a positive impact on the future adoption and growth of the bank’s products.
In addition, it is now possible to perform several interesting operations through blockchain technology. Among these is the tokenization mechanism. This is essentially the process of converting a valuable object (real estate, stock portfolio or artwork) into a digital token that can be transferred to the blockchain (in the form of an NFT). This mechanism can provide additional revenue opportunities for businesses.
Tokenization of real estate, for example, could allow investors to own fractional units of a given property to demonstrate ownership, transfer and record ownership rights via the blockchain.
Using blockchain technology to save money
One of the key objectives of the development of a company will be the long-term sustainability. To achieve this, it will proceed to gradually streamline its internal operations, managing expenses and eliminating processes that are inefficient and too costly. This is a golden rule for any business, and those that fail to do so usually have a shorter lifespan.
Blockchain offers businesses decentralized and distributed properties that will help them save a lot of money. By using blockchain, these businesses will be able to eliminate third-party intervention in their operations and reduce the time it takes to perform specific functions.
In addition, blockchain combined with artificial intelligence can help streamline workflows. Since it requires limited interaction with humans, its use will reduce human errors. This is a feature that JPMorgan Chase is very interested in, as they are already experimenting with the use of blockchain for collateral settlements.
These trials, once successive, will be able to replace processes based on the U.S. dollar, which are manual and depend on wire transfers and bank transfers. The bank will be able to adopt more efficient internal workflows that will result in cost savings.
The appeal of a new competitive market for businesses
It is common knowledge today that all companies that integrate quickly into a developing market acquire significant percentages while building a reputation as a leader and innovator.
The birth and evolution of blockchain technology offers many opportunities for early adoption and competitive advantage for companies. When we look at Binance for example, it is a company that started out as a simple unregulated crypto-currency exchange platform in China. However, it has grown very quickly to now offer various offerings in several other countries around the world.
These initiatives represent true innovations that demonstrate a company’s willingness to take advantage of new opportunities in a global landscape. Moreover, the success of a first company in a new market will certainly inspire its competitors to follow suit by taking similar steps.
Therefore, any company that wants to explore blockchain technology should first do a thorough study of how it works and what it is. They must also identify obsolete or inefficient processes in their operations and determine how blockchain could improve them. Finally, they will need to establish a reasonable timeline and budget for a gradual integration of the technology.
These are very important steps to consider, as the limited understanding of how blockchain works is one of the main obstacles to its adoption by businesses.
Beyond the blockchain itself, the Metaverse will probably also be a revolution for the business of many companies, as was reported in the fashion industry not long ago.