Most of the people are just focusing on the astronomical rise of Bitcoin. The technology fuelling the cryptocurrencies is largely been ignored. The technology is known as blockchain. The advantage of blockchain is that it can be used in a variety of other applications.
Only when businesses are able to understand blockchain technology, they would understand how it can increase their profits. This is specifically true for B2B businesses.
Blockchain: Verification as well as execution of smart contracts
Blockchain is actually a decentralized ledger which can help in the verification as well as execution of smart contracts. Since it is decentralized, no central servers are required. Since most of the data is encrypted, the people who were verifying the data with the help of their computers do not know what it exactly is. This provides added security as well as minimizes the need of expensive IT infrastructure.
When you look at it from the point of view of cryptocurrencies, you would realize that money can move from one user to another without any expensive servers or IT infrastructure. Thus, transactions can be completed in a shorter frame of time and the fees would also be on the lower side.
Advantages of Blockchain for B2B Businesses
Some of the advantages which it provides to the B2B businesses include:
- Better supply chains:
With the help of a decentralized ledger, the supply chain can run smoothly. Also, the processing time can be significantly reduced.
- Easy to process the sales and transactions:
The sales and the transactions can be easily processed are due to the decentralized architecture. This would ensure that the supply chain is much faster as well.
- Easy scalability:
As IT infrastructure is not owned by a single company and is rather decentralized, you can be sure that scalability can be easily achieved.
- Suitable for multiple industries:
Unlike some of the other technologies which are suitable for only particular industries, this is useful for B2B businesses in a variety of different industries. This would make it easier for companies to use a versatile technology which can be modified to their needs.
- Enhanced security:
As the entire data is encrypted, you can be sure that security would not be an issue at all.
- Enormous savings:
Faster technology and process orders much quicker with Blockchain
With the help of blockchain, B2B platforms would be able to save a lot of money by not having to invest in IT infrastructure. Moreover, due to the faster technology, they would be able to process orders much quicker as well. (Source: forbes.com)
Thus, the blockchain technology can easily benefit the B2B businesses by providing them with the above advantages which we have mentioned.
HOW B2B CAN BENEFIT FROM BLOCKCHAIN
Source iBuildAPP: Blockchain is undoubtedly becoming a buzzword in daily conversation– its rapid growth and influence in value have made it attractive to speculative investors and businesses are beginning to use it for secured transactions. The distributed, consensus-dependent ledger technology is a new form of database due to its trustless and encrypted nature, and one which could potentially transform significant aspects of finance and business. The developments in the technology are moving at a breathtaking pace, that we could almost forget about the internet of things (IoT) and the internet of media (think Twitter, Facebook, and YouTube).
BLOCKCHAIN TACTICS FOR B2B
The blockchain is not going to revolutionize B2B by dawn because of its promises, but there is a significant potential for players involved in marketing and retail. It is imperative that investors must pay attention to how blockchain works and how it will impact the retail industry.
Blockchain has entered the enterprise marketplace (think walmart) and it holds promises in delivered communications between partners, merchants, and customers. It will seek to improve performance, retail governance, and processing — with confidentiality in assets and data. Blockchain will speed up transactions between trading members, enhance merchant–supplier trust, and boost the public opinion of retailers. The technology improves the traceability of valuable and regulated items, to demand logistics conditions and that delivery provides a win-win situation for sellers and consumers. There is the launch of impacts sensors which monitor the physical supply chain so that merchants and consumers have a mutual knowledge of logistics incidences. Senior supply chain executives see the possibilities in blockchain; therefore they anticipate an increase in revenues and shift in services that could automatically track consumption, with smart contracts.
The increase in price for a service depresses the demand for the service, as transaction costs of retail has a significant effect on its selling price, which dampens consumer patronage. Consumers will turn to Bitcoin exchange as the currency increases the purchasing power of the individual and will drive payments in retail. 8.5% of Americans are outside the prosperity line and drop their demands when the selling price exceeds their budget. Bitcoin offers an opportunity to bypass “expensive” forms of payment for something much cheaper. The cost of transaction on a USA credit card is about $200, which is relatively high.
Blockchain makes it possible for every legitimate member of the supply chain to verify product authenticity. This is the value blockchain adds as a distributed ledger; it handles counterfeiting and product swapping very carefully — the validity of a purchased smartphone is verified at every point of receipt or discharge, without being tampered with. A Lenovo 3g Ram laptop bought in the UK will not reach Brazil and become Lenovo mini with 1g Ram. It will save the retailer from public distrust and the consumer from needless shipment verification. Food supply chain also records lifespan as it moves through every touch point, helping retailers build a new wave of confidence in resale markets. There are lots of startups and software solutions that are targeted in the direction of addressing retail cases and blockchain is the best fit for product and supply chain integrity.
Buyers issue payment instructions from payable accounts, initiating currency transfer and time-stamp transactions. The distributed nature of the Blockchain ledger avoids any delayed control of checking funds availability, and clearing, billing, and reporting activities. All executed operations are validated in real-time. The beneficiary bank receives notice of an irrevocable transfer of cash, which the distributed ledger confirms, as it also streamlines all necessary account management verifications to authorize the payment data. Banks are also collaborating on a cross-border blockchain payment project.
The main goal of B2B is customer engagement and profit, but the well-positioned advert is the path to achieving this, and blockchain innovations like iBuildApp Network offer a solution here. Small organizations use friends and influencers for reseller business. iBuildApp Network, for instance, helps B2B to see potential clients as a chat buddy and constructs marketing materials with a stronger focus on buyer persona. The app helps customers see B2B as a person than a group of individuals at a board meeting, thus embracing interactive contents. iBuildApp Network seeks to bring clarity to the B2B marketplace dependent on media seller objectives while assuring precision and conversion.
Another blockchain application in B2B is that value can be moved to geographic locations, without a drop in quality. Enterprises don’t have to move huge capitals since value is transferred from one country to another without worries as the community uses Cryptocurrency for transactions. Cryptocurrencies have the same value in UK, USA, and Australia as blockchain transactions don’t require the exchange rates of fiat currencies.
THERE IS SPACE FOR B2B IN BLOCKCHAIN
To sum up, blockchain is a disruptive technology with vast market potential and even the potential to change enterprises. Not only does it facilitate data management but it also secures it more efficiently through distributed storage encryption. This can be applied in the supply-chain management, payment systems, and value transfer of reseller business. Source: iBuildApp Network and IBA Token