Bitcoin and cryptocurrency have been flooding the news recently all thanks to the buzz surrounding the record-breaking exploits.
It’s hard to believe that in 2011, Bitcoins traded for just $1 each, and whilst you may be regretting not investing when the word of crypto was still emerging, today there are several ways that blockchain technology could help improve the profitability of B2B businesses and the efficiency of stock trading, and so not all is lost!
Here, we’re taking a closer look at how blockchain technology has improved profitability of B2B businesses and the business world in general.
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Blockchain technology not only helps improve the profitability of B2B businesses, but this innovative technology also offers real savings. By speeding up the transaction process, blockchain technology immediately moves the customer’s payment to the vendor. This speed ripples through the supply chain, satisfying the customer and making the entire process far more effective. Due to the technology facilitating distribution, this significantly increases efficiency down the line, helping save invaluable time and money also.
Unlike some of the other advanced technologies that are clearly suitable for only a handful of industries, blockchain technology is useful for B2B businesses in a number of different industries. Businesses are able to utilise blockchain technology in a number of different ways, modifying it to their needs. As a result of fast technology, orders can be processed much faster.
Better business processes
One of the blockchain’s simplest functions is to ensure that data is exchanged and stored across networks in a transparent fashion. This is crucial for not only addressing the inconsistencies in data, but the lack of trust among participants in a particular network. Businesses can use smart contracts in several ways, including lease agreements, employment contracts and sales contracts. Above all, smart contracts save time – instead of lawyers and/or accountants spending a number of hours going over the information, the gaps are automatically filled.
Tokenization of assets
A rapidly emerging business practice within the world of blockchain technologies is the tokenization of assets. In short, this simply means assigning various cryptocurrency tokens to physical assets. It can be achieved in a number of ways such as tokenizing product offerings or enhancing the liquidity of illiquid assets. This enables businesses to easily manage or sell the assets they own without having to undertake a tedious, time-consuming process each time, putting value to otherwise intangible assets.
While purchasing Bitcoin or any other type of cryptocurrency might not be at the top of your to-do list, it is almost impossible to ignore how blockchain technology is helping improve the profitability of B2B businesses. From the tokenization of assets, to better business processes and the opportunity to make real savings, blockchain really has benefitted the B2B business environment, and so it is certainly a technology worth being thankful for! Who knows how else blockchain technology could significantly benefit B2B businesses in the future?