How Blockchain Translates to ROI

Emerging blockchain technology represents tremendous value across industries of all kinds.

The world of Cryptocurrency has very successfully developed and implemented blockchain, and serves as a great example for the potential success of blockchain into other industry sectors. The core of this technology is that it allows for “replicated ledgers” — a detailed history of transactions or other information that is decentralized, maintained in real time, and available to all accessing parties in full detail.

Essentially, blockchain keeps information secure and decentralized with an aspect of anonymity, using a “chain” of computers to verify changes and additions before a record is verified and updated. Once it is verified, the updated “ledger” is available to the entire chain. There are other applications, and plenty of specifics to how the technology operates, but this basic overview illustrates how powerful it can be!

Like any technology, however, there are upfront costs associated with getting operational. For most businesses, a deep understanding of operations isn’t the primary goal. Instead, they want to know how blockchain stands to provide ROI…

Security & Trust

The most immediate benefit of blockchain is security. Because records, transactions, database changes, etc. are all verified by the entire chain, information is more accurate, “unhackable,” and totally transparent to all accessing parties. Data on the blockchain can be updated but cannot be changed…once in the blockchain…it is a historical record and is always there to be accessed. This security, then, translates to more trusting partnerships, fewer errors, and increased client trust.

In terms of ROI, the security and stability increase lifetime customer value, while also protecting against costly mistakes or erroneous records.

Efficiency

Decentralizing a ledger of information — with identical records available in numerous locations, without the need to be verified by a human — makes many elements of a business more efficient.

First, people can simply spend less time manually verifying information (which reduces company overhead). The decentralized data also means that, for example, organizations in different time zones — or on opposite sides of the world — can conduct business without waiting on another branch. All of this speeds up interactions and transactions — and time is money.

Similarly, if a conference call, meeting among branches, or other event requires multiple people to access the same information in multiple locations, blockchain allows this to be done without a third party (which reduces costs) and with incredible accuracy, which promotes trust and collaboration.

Customer Service

The more information you have, the better you can serve your clients and customers. Blockchain allows for highly accurate inventory, easily trackable transaction history, and even ongoing updates to supply chain/product development/manufacturing…

As records are updated universally, service professionals can provide immediate information about items in stock (or in stock at other locations), lead time for products on backorder, and status updates for custom projects.

The accurate records empower staff to have answers right away, which helps customers feel taken care of — earning their long-term loyalty and repeat business as a result.

Automation

Beyond some of the efficiency mentioned above, blockchain allows for a range of automated transactions — including inventory reordering, automatic billing, and so on. This is advantageous for both time spent, and for the consistency and security of the automated actions.

There is no room for human error, no delay for human verification, and tremendous reliability as each action is verified as correct by the entire chain.

Blockchain technology is capable of some incredible things, all of which serve to streamline operations, keep staff and leadership informed, and develop deeper, more trusting relationships.

Each of these factors translates directly to ROI, from reduced overhead to increased efficiency… New, lucrative partnerships to long standing customer and client relationships.

This type of computing is revolutionizing the way business is done across all industries and markets, and is well worth the investment.