Blockchain is a very promising field and it has been estimated that in time it will change a big part of modern business. The problems that the control register will solve are as intriguing as the benefits the entrepreneurs will receive. There are few examples in which Blockchain is used and they indicate its use should be permanent.
Logistics and Supply Chains
Tons of mismatches are occurring yearly thanks to different terminology, procedures and also standards in the logistic systems. The founder and the president of FedEx, Fred Smith tells that this is the main and the most important problem of logistics. According to him, this problem is the reason why businesses all over the world lose money, time and resources.
For example, 10 percent of freight invoices have wrong data while it has been estimated that courts all over the world own 140 billion dollars because of fraud and mistakes. It is important to mention that almost 9 percent of pharmaceutical cargos arrive destroyed because of temperature during transportation.
If the logistics business decides to permanently use the Blockchain and the smart contracts then the information will end up in digital form, new business models will be implemented, frictions will be eased and data about how goods are made will be available for all. The system will have this information and the government services, the retailers and the consumers will be able to see it any time they want.
How to track goods from manufacturers to store shelves? Walmart has the answer to this question. Walmart uses the Hyperledger Blockchain to do this. There are chips on products that observe their location, humidity, and temperature.
IBM and Maersk publicly said that they work on a logistics Blockchain platform and so far, Amazon, Alibaba and FedEx are among the interested companies.
Financial and Banking Sector
Financial and trading operations have approximately three faults. They increase the transaction costs because you already know that the participation of third parties is not free, there are a lot of risks from fraud and data theft, and the complexity of transaction duration can bring additional waiting days and price incensement as well. Here, if the Blockchain is permanently used, the transactions would be faster and cheaper. In other words, the Blockchain will remove a lot of intermediaries. The Spanish International bank BBVA has already used Blockchain technologies. The loan is not small at all, it equals 75 million euros.
The high cost and the lack of transparency are quite visible in the real estate business no matter the country. Bureaucracy, corruption, and fraud are hard words and all of them are used when people and corporations talk about real estate. So, according to this information the real estate topic is quite problematic. Is the Blockchain useful here, can it help? Yes indeed. The Blockchain if used can identify someone’s personality and verify IDs and biometric data. It will be one hundred percent safe and there are zero chances of changing it. The process will be quite cheap and quick and the documents will be available all the time. The document flow will also be simply due to the increased amount of transparency. Bitnation community is a step ahead and Janina Lowisz is the first person ever who has a Blockchain ID. Also in 2016, Michael Arrington, founder of TechCrunch, by using the Blockchain platform bought a flat in Kyiv.
Retail and Commerce
First, The Blockchain here would improve payments and contracts. Second, it has been estimated that it would give expertise in working with customers thus improve the relationship thus attract more customers. Third, it would supply chains and last but not least would improve the advertising. Walmart appears here once again using the Hyperledger Fabric Blockchain but this time together with Nestle, Unilever, and Kroger. They track the logistics and authenticity of the products they sell and they use distributed registers for that.
Marketing and Advertising
Research indicates click fraud, a lot of intermediaries, lack of transparency and distrust when it comes to online advertising. Although they click on ads, people do not usually believe in online advertising and some of them even block their existence with additional add-ons. Blockchain here can keep personal data, can allow customers to communicate directly and can remove bots. As we can see from the above, the current technology cannot offer this thus Blockchain is necessary. Walmart is mentioned once again. Together with IBM, Walmart gave its customers, written forms about products and brands in the retail section.
Although the sector of production lacks bureaucracy, there are problems in finding finance, malmanagement and sometimes complex and too little sales chains. There is no way to neither improve production nor control assets because the sector doesn’t have the right tools. The lack of tools also does not bring improvement in accounting efficiency. Blockchain brings verification, transparency, and control here, at least according to Gary Brooks, specialist of Syncron. All the important assets, that later will be monitored will be registered by the Internet of Things or IoT. The accounting will be built on the Blockchain thus will properly report due to accurate and traceable information. The transactions won’t be risky and the finances will increase. Yojee, a startup company is using the IBM Blockchain for two years and gives amazing results.