How can business benefits from using the blockchain?
Blockchain Technology:
According to a Deloitte survey last year, blockchain technology is expected to become a key sector in many industries this year.
Thirty-six percent of survey participants said that Blockchainx has the potential to improve system operation, either by reducing costs or increasing speed, and 37% cite blockchain superior security as a major advantage. The remaining 24% said that blockchain has the potential to enable new business models and revenue streams.
Thirty-nine percent of executives at large U.S. companies said they had little or no knowledge of blockchain technology, while the rest said their knowledge ranged “from savvy to expert.” 55% of this group said their companies would be at a competitive disadvantage if they didn’t adopt blockchain technology.
“The industry is still somewhat confused about the potential of blockchain,” said David Shatsky of Deloitte LLP. “They said they see it as a key technology in the rankings, but about one-third consider it an exaggeration.”
Blockchain is an encrypted distributed electronic ledger or database platform. In other words, it stores digital data in an immutable state so it can be shared securely across multiple networks and users. A blockchain database combined with a distributed time stamping server in a P2P network can be managed autonomously. No admin is needed, the user is the admin.
“Blockchain removes a significant portion of record keeping, which can be confusing when multiple parties are involved in a transaction,” said Saurab Gupta, vice president of strategy at IT services firm Genpact. “Blockchain and distributed ledgers could ultimately be a way to unify recordkeeping across the commerce world,” he said.
Smart Contract
Blockchain Distributed Ledger enables automatic execution of business contracts. First, the peer-to-peer database collects all the terms of the Smart contract between the organization and the customer, then uses data pulled from distributed nodes or servers to determine whether these terms are met and authorize the payment.
In the process of checking whether these drought conditions are met, no human intervention is required and insurance payments are automatically paid, improving the efficiency of the entire process. As a result, time and cost savings are possible.
Similarly, blockchain-based smart contracts can be used to execute automatic payments between financial institutions.
Accenture recently found that eight of the world’s top 10 investment banks could cut infrastructure costs by an average of 30% if blockchain technology were used, which “corresponds to cost savings of $8 billion to $12 billion annually.” content report was published.
Inefficiencies are prevalent in the payment, settlement and settlement processes in the financial services industry (including the stock market). This is because each organization participating in this process must maintain their own data and communicate with each other via electronic messaging about the current state of the process. Due to this, payment usually takes two days. Delays in settlement lead to lost investment opportunities for banks.
According to Accenture, each organization participating in a blockchain database or ledger can instantly share data, reducing or eliminating the need to perform reconciliation, validation, and transaction blocking analysis, resulting in a more efficient and effective settlement and settlement process. can
Eliminate corporate transaction fees
Most payment systems are managed by financial institutions such as banks. Fees are usually charged when money is transferred between businesses, especially small businesses.
Large corporations have always enjoyed an edge in the global market. Capital to absorb remittance fees (or capital to lower fees), more effective intellectual property protection, and many other benefits that come with a wealth of capital and influence.
Blockchain technology helps to address inequality in these markets and allows small businesses to compete in the global market.
For example, B2B payment service provider Veem uses a blockchain to charge no fees when SMB customers transfer funds internally. This is in contrast to large banks charging a fee of about $50 per wire transfer.
Beam CEO Marwan Posley sees blockchain as an opportunity to “take the middleman out of international transactions.” This directly affects the payment environment for suppliers and subcontractors, the timing of transactions, and fees, which are a huge burden on SMBs.
Patient Data Sharing Guarantees Payment While
Electronic Medical Records (EHRs) have contributed to some degree of centralization of patient data, since EHR platforms are not standardized, it is quite difficult to share this sensitive information with various healthcare providers, including specialists.
Healthcare organizations can use a secure, encrypted and decentralized blockchain ledger to pre-authorize sharing of patient information.
Last year, the US MIT Media Lab and Beth Israel Deaconess Medical Center tested a proof-of-concept for sharing information about patient medication through a blockchain ledger called MedRec. MedRec is based on the Ethereum blockchain platform for smart contracts.
MIT and Beth Israel Deckers Medical Center reported in an analytical paper entitled A Case Study for Blockchain in Healthcare that “confirms that blockchain can contribute to secure and interoperable EHR systems.”
The healthcare sector is also plagued by inefficient payment systems, with frequent conflicts between insurers and healthcare providers.
“Insurers have already pre-approved based on medical necessity or pre-approval, and it’s difficult to collect,” said Gene Thomas, CIO, 445-bed Memorial Hospital, Gulfport, Mississippi, USA. 17 cents per dollar, 21 cents per dollar, etc. are used for collection,” he said.
A blockchain based on a shared ledger in which all parties to a health insurance contract, i.e., patient, provider, and payer, see the same information at the same time, has the potential to eliminate “an arduous, costly, and frictionless process.”
Selling Energy via Microgrid
Residents of Brooklyn’s Park Slope area can now sell the energy produced by roof solar panels via a microgrid based on a blockchain ledger that records all transactions with local power plants.
Built by the Siemens Digital Grid Division, the microgrid includes a network control system, converters, lithium-ion battery storage and smart electrical meters. Even if there is a power outage due to another hurricane like Sandy in 2012, the residents of the microgrid can still use electricity by switching to a spare battery.
