It is hard to deny that there is a lot of ambiguity surrounding the idea of blockchain technology. To many, the terms blockchain and cryptocurrency are almost interchangeable, and there seems to be nothing to know about the system beyond that. However, this is proving to be a false belief, with the non-cryptocurrency applications of blockchain rising in popularity among both well-established and emerging companies alike.
Blockchain and cryptocurrency
In general terms, cryptocurrency refers to a virtual form of currency that is secured using cryptography. They are based on blockchain technology, irrefutable, and next to impossible to counterfeit. The most well-known forms of cryptocurrency include Bitcoin, Etheruem, Cardano, Dogecoin, and so on. The following features make cryptocurrency highly favorable among young investors:
- Low transaction costs
- 24/7 access
- Easy verification
- Unlimited purchase and withdrawal
- Rules out the need for banks
Ironically, the features that make the cryptocurrency market appealing to many people are what turn some off from the idea of ever investing in them. Studies show that only 0.5% of the world’s population is using blockchain technology at present. This form of mistrust and lack of information about digital currency has led to misplaced perspectives about blockchain technology in general as well.
Employing blockchain technology in business
Contrary to popular belief, blockchain technology is a useful and worthwhile system to improve business processes. In fact, several large companies are employing blockchain in their day-to-day operations, and smaller companies have started following suit as well. If this trend continues, the market worth of blockchain solutions is expected to reach $20 billion by 2024.
Using blockchain technology, businesses can create secure and verifiable NFTs for each of their products, and thereby enjoy the following benefits:
1. Product provenance:
A brand’s products need to be traced from start to finish in order to ensure that they are not forged or duplicated along the way. This is not always practical when there are a large number of products. However, using NFTs, all product-related transactions can be digitally tracked and managed from the source to the shelves. This helps both brands and customers keep an eye on their valuable products with minimal hassle.
2. Immutable data records:
A major issue that several businesses struggle with is protecting their data from both internal and external threats. When done manually, securing valuable data tends to be a time-consuming and expensive process. This issue is easily solved using the cryptographic security that blockchain technology provides. All the data uploaded into the blockchain network is quite difficult to manipulate and can be securely stored based on business needs. Data privacy is always taken care of in the system.
Product counterfeiting has been practiced for centuries, and with the advent of advanced technologies, it has become nearly impossible to differentiate the real from the fake. This also causes a huge drain on brand loyalty and value. However, blockchain technology makes it simple to verify product authenticity every step of the way. It is simple to trace product duplication and forging trends and then implement anti-counterfeiting solutions using product NFTs.
4. Automated transactions:
Human resources are integral for the functioning of any business, and they need to be allocated appropriately for maximum productivity. However, product management hurdles cause many brands to waste manpower on activities that are repetitive and redundant. Such processes can be automated using blockchain technology. Product digitization brings a lot of ease and automation into everyday business and helps brands make split-second decisions better.
5. Customer engagement:
Boosting customer interactions has become a top priority for brands hoping to stand out from the competition. There are now several digital solutions available in the market that foster brand-customer relationships, including smart QR code solutions empowered by blockchain technology. Such innovations open up new avenues to boost brand loyalty, interaction, and appeal which are essential for business growth.
6. Business efficiency:
A common concern that several brands have is that it will be challenging to adopt new technologies and replace older ones. However, in reality, digitization can enhance businesses rather than disrupt them negatively. Blockchain technology can be seamlessly integrated into existing business systems, making it easy for brands to boost overall efficiency and productivity.
7. Direct consumer connectivity:
Personalized brand-customer interactions have become crucial in this day and age. But due to mass production and related concerns, not many brands are able to provide focused attention to their customers. However, with NFT-driven solutions, brands can establish direct communication channels with specific customers or customer segments to promote exclusivity, customization, and meaningful connections.
Enabling blockchain business solutions with Authlink
Authlink is a convenient and user-friendly platform that brands use to drive up business efficiency, product traceability, and customer interactions with minimal hassles. The platform offers a range of solutions that comprises the best that blockchain technology has to offer beyond cryptocurrency.
Explore game-changing blockchain-driven opportunities for your business. Schedule a free demo of Authlink here, or sign up for the beta version here.