A 2018 Deloitte survey studied over 1,000 business executives. Out of which 39% of the respondents share their support of investing at least $5 million in blockchain technology for business over the next year or so.
This example on its own showcases the faith people have laid in the technology and the potential it offers to disrupt business over a wide range of industries. This creates a need for businesses to understand the structure of the technology. Also, invest in applications that they can utilize the technology in.
What is blockchain?
Before we begin to discuss the technology and what it offers to businesses. There’s a need for us to first and foremost understand what this technology is all about.
Think of blockchain as a medium through which you can record information about transactions that are actually available on a distributed, decentralized, and public ledger. With this, each transaction that takes place is then recorded in a digital “block”. Then it moves to an already existing chain of information.
What blockchain is doing is simply the revolution of information security as we know it. With the ability to transfer digital ownership in a decentralized manner that does not even require a central entity. This technology is changing the landscape of information in business transactions.
Blockchain Key Components
Ledger – think of this as a record book of transactions but only digital in nature and offers information on transactions available on the blockchain.
Mining – the process through which blocks add to the already existing blockchain by solving rather complex mathematical problems.
Wallet – This is where it’s all at. The wallet contains all of the public and private cryptographic keys that have been used in the transactions.
Transaction – any payment recorded in the blockchain’s ledger.
Cryptocurrency – computers and their users are rewarded for building blocks with forms of digital currencies that can in fact be used to make purchases using the blockchain technology on offer.
Public key – think of this as the user’s digital signature that is used in a transaction.
How Does It Work?
Understanding blockchain might be a little difficult. We’re going to break it down into four simple steps for you:
1) A user makes a transaction using a cryptocurrency. This can be any form of transaction that has taken place on an E-commerce platform.
2) A network of computers will now work together to solve a complex mathematical problem to confirm the time of the transaction, the amount, and the participants.
3) Once all information is available. It is available publicly in a block, given a unique identifying code called a hash, and then attached to a previously existing block.
4) Every computer in the network then stores an identical copy of the blockchain ledger.
Blockchain Technology For Business
Blockchain technology on its own offers numerous benefits to businesses and organizations present in both small and large markets. With the usage of this technology, these businesses can gain greater efficiency, improve their supply chain management and increase transparency in transactions.
Blockchain Technology for business solutions offers a great variety of use cases. Through a decentralized system with each computer on the network has a certain control over the infrastructure. However, blockchain changes the way customer relationship management systems are working for the better.
While blockchain technology also finds diverse applications in many other Businesses. Customer Relationship Management (CRM) systems happen to be a core part of any organization which intends to maintain a healthy relationship with its users. To analyze and address customer requirements, organizations need to build and maintain a proper CRM that tends to all these needs.
Benefits of Blockchain In CRM
Let us see the benefits of a Blockchain integrated CRM solution:
With businesses dealing with customers on their CRMs with no other entity involved. It creates a sense of trust within the organization that their needs are being addressed in real-time. If you are an E-Commerce organization. You might be able to conduct transactions on your portal without involving a third-party financial organization. Not only does this increase the conversion rate. Since the time taken for the transaction is less. However, you can redirect customers to other opportunities as they will be sticking on your portal.
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Improved Privacy and Security of Records
The customer information and data which include the transactions conducted with your organization will be secure due to the decentralized nature of the CRM. Since each computer on the network almost has the same authority. There will be no need to keep a check and balance on the records. As no one has complete authority over the system. This ensures proper regulation of any set policy on the CRM as well.
Say Goodbye To Duplication
Blockchain will also end the need for database maintenance as there will be no duplications on the CRM once it is set up. All systems on the network will have a unique ID with control over the network distributed to all entities. There will be no tampering or duplications of records in this way. Since every entity on the network will keep a copy of the records with it. This is the beauty of blockchain and the benefit of a distributed network with no central authority managing the affairs.
By the introduction of blockchain on your CRM. You are being transparent with customers and keeping things in check through a distributed network. Blockchain implementation allows you to keep a close eye on any fake entries and there is the least chance of these since each PC has minimal share over the network. The distributed ledger technology can be available to the simplest of use cases like payments of salaries where the organization and the employee, whose ID is on the network, both maintain the same record of a month’s salary. Hence if there is any discrepancy, both records are available to sort it out.