6 Major Benefits of Using Blockchain in B2B Businesses
Blockchain technology is gaining traction everywhere, and the year 2021 will witness a spike in its adoption. The implementation of blockchain in B2B businesses can improve profitability and security to a greater extent.
For B2B businesses, it can act as a virtual bank, but without intermediaries – by using cryptocurrencies. Apart from dealings of money-the most obvious use case, let us understand what other advantages blockchain can bring to B2B businesses.
Key benefits of using blockchain in B2B businesses
A few of the major benefits of implementing blockchain in B2B businesses are discussed here. Take a look.
Increased efficiency in logistics:
The legacy supply chain work is not replaced but got refined with blockchain interruption. The shared version of events along the supply chain helps the team involved to collaborate, streamline resolution processes whenever a dispute occurs. All the participants involved in the chain are able to verify the status of a product or any related data. Thus, blockchain helps to reduce fraud, error and eliminates paperwork.
BHP Billiton, Walmart, and etc. uses blockchain technology for provenance.
Improved sales processes:
Marketing is most important for any business. In the case of B2B businesses, maintaining a long-term relationship with the partners is essential. Long-term relation can be maintained only through trust. Mention not say, blockchain expedites the trust processes at reduced costs. Businesses expect trustworthy credit management policies and systems in place, to mitigate risks. With blockchain, it is easier to build and maintain relations.
Improved consumer privacy:
CSO has recently compiled a list of breaches like credit history, eCommerce goods, health information, government personnel files, and more. the traditional way of data storage has ripped apart the confidence of consumers and business people.
In this case, blockchain’s decentralization and the distributed feature ensure that breaches do not happen. In the first place, data is not stored in a central zone, so that there is no chance for attack. B2B marketing and advertising solely depend on trust and the implementation of blockchain is in favor of it.
Improved data quality of third-party marketing data:
Blockchain solutions will make third-party data more trustworthy that are available to B2B marketers. Business decision-makers share their data when they trust that their personal data will stay safe and secure. In the future, public blockchains may allow consumers to opt-in directly and marketers will transact with the blockchain to access data.
Implementation of new-age transactions:
Blockchain-based platforms enable transactions using cryptocurrencies and remove intermediaries like payment processors and banks. The fees involved in the transaction are also low and the time involved is also less. Digital identity is made more authentic through blockchain and represents the B2B connect system in a systematic and trusted manner.
Further tokenization of assets enables liquidity of illiquid assets. This helps businesses to manage or sell assets without consuming more time or undertake a tedious process.
Blockchain speeds up the transaction move the customer payment to the vendor directly. It facilitates easier logistics, distribution, and efficiencies along the line. Further, it reduces the overhead service charges and totally helps the company for improved savings. Blockchain enables autonomous types of engagement while replacing credit processing and banks.
Blockchain technology has huge potential to transform industries. Its reliability and scalability are bound to change the business way for B2B businesses in the near future.
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