While Bitcoin is experiencing the dramatic fall after its astronomical growth during 2017, the world seems to ignore the importance of the technology behind cryptocurrencies.
The role of blockchain is widely underestimated, while it’s valid for both end users and companies providing business solutions. Among other benefits, blockchain can significantly increase the security and profitability of B2B projects.
Cryptocurrencies themselves can also be helpful, as more forward-looking companies tend to implement them for different payments.
Blockchain is a decentralized ledger, a database which can facilitate sharing and editing processes. Blockchain-based systems don’t require central servers or intermediaries to perform data transfers, so they get rid of any intermediaries, like money processors and banks when it comes to payments.
Historically, blockchain was invented as a technical base for Bitcoin, the world’s first cryptocurrency which was intended to replace fiat money.
But decentralized systems are useful for various industries apart from finances. Blockchain facilitates different processes from storing sensitive data to tracking products and it can effectively serve for various B2B purposes.
Key advantages for B2B companies
For businesses involved in creating products and services for other companies, blockchain may act as a new type of bank.
Using it, you can send or receive money, sign contracts, accept deposits, and much more.
Don’t confuse blockchain-based systems with online banks because the latter are still powered by central authorities, while the former are fully decentralized.
As money deals are the most obvious use case, let’s see what other opportunities blockchain and crypto may bring to B2B offers.
Supply chains and logistics
Blockchain allows for simple tracking of goods produced by your company. All participants of the supply chain can check the current state of a chosen product or any related data. Blockchain helps reduce fraud and error, identify issues faster, and eliminate paperwork.
Decentralized databases may crucially increase the partner trust. Every detail and every change can be easily tracked.
Blockchain is actually already being actively used in this field, with specific forums dedicated to innovations emerging and new solutions being launched all the time. Here are just a couple of examples from the world’s largest companies: BHP Billiton utilizes it for mining processes, Walmart is testing blockchain application for tracking products supplied from China to be produced in the US.
B2B sales have a longer lifespan than B2C ones which, again, brings us to the issue of trust.
With blockchain systems, it becomes easier and cheaper to build trust in relations with partners. Jeremy Epstein from Never Stop Marketing mentions that only half of existing B2B companies check partners’ creditworthiness or request secure payments. With blockchain, both options become unnecessary because the systems guarantee the safety for all participants.
Blockchain takes the world to a new era of making deals controlled not by humans but unbiased machines.
Smart contracts that were originally designed for the Ethereum network to facilitate deals between apps’ developers now are widely implemented by businesses. They come with a predefined set of rules which may be triggered by a certain action.
Using them, B2B companies can approve all terms and conditions effectively and avoid any misunderstandings.
As we’ve mentioned earlier, the most obvious advantage of blockchain relates to money transactions.
By removing intermediates like banks and payment processors, blockchain-based platforms allow completing nearly instant transactions with relatively lower fees which means way lower expenses for all involved parties.
Even rather traditional projects like SWIFT realize the importance of blockchain deals, expanding its adoption of a new technology. Visa has recently presented The B2B Connect system, improving digital identity matters.
It will be useful to start accepting crypto. Bitcoin is the most obvious choice because it’s already widely supported.
Businesses can also add another coin which works as a payment method. To make your choice, check exchanges comparison where prices of different currencies are presented.
The importance of crypto is undeniable for both B2B and B2C companies because it allows making faster and cheaper payments. There are even business solutions for digital currency exchange services – B2BX is a marketplace designed for institutional clients who should take the crypto market to a new level.
Future prospects of blockchain implementation
Blockchain is a transformative technology that is still in its infancy and is not used to its full extent now.
But current tendencies show that it’s just a matter of time, as the demand for new blockchain solutions and developers is rapidly increasing. Decentralized applications for real estate, digital identity, healthcare, entertainment, and other industries are on their way.
They all introduce better transparency to their field which is essential for any business relations. With the world’s most influential companies starting to deal with blockchain and crypto, with B2B offers like Google’s Blockchain-as-a-Service (BaaS), we can be sure that sky is the limit for this technology.