Financial Advantage: Blockchain
As we have discussed, there are a lot of advantages for companies utilizing blockchain including:
1. The transactions are recorded in chronological order. Thus, all the blocks in the blockchain are time stamped
2. The transactions stored in the blocks are contained in millions of computers participating in the chain. Hence it is decentralized. There is no possibility that the data if lost cannot be recovered
3. Since various consensus protocols are needed to validate the entry, it removes the risk of duplicate entry or fraud.
But what are the risks for your company to invest in blockchain? The reality is, you might invest in blockchain tech now but you may not see a return for a while "A right strategic approach is what is needed to leverage the maximum benefits of blockchain technology. " Ankit Patel.
The areas where it can make the highest financial impact are retail, trade finance, real estate, supply chain management. I am focusing on these areas because this is where the highest visibility of impact can be seen. For one thing, utilization can reduce instances of fraud which can be a prevalent issue within the financial markets. Another way blockchain is useful is reducing sunk cost. In many transactions, no matter the industry, sunk cost is a factor that has to be taken into account due to data and financial management. With a blockchain, that is severely lessened as all transactions are current, immutable and time stamped. Therefore there are no lost or misplaced contracts, there are no areas of misunderstanding as everything is on the chain itself. This reduction in sunk cost can help save companies hundreds of thousands of dollars (depending on the size of the firm).
To read more about how blockchain can help you and whether you are a good fit or not take a look at this article: