Blockchain technology has evolved rather fast since 2008 when Bitcoin, the first peer-to-peer electronic cash system, was introduced by Satoshi Nakamoto. Now, most sectors, including manufacturing, are exploring ways of implementing it in their systems.
Blockchain, like the name suggests, involves creating small blocks of data and linking them so that they form a type of a chain. As a decentralized and trustless system, blockchain is offering enterprises unique opportunities such as enhanced security and efficiency. Here are some of the main benefits of implementing blockchain technology.
The main characteristic of blockchain technology application is that it is transparent. Because it is implemented as a public ledger, it implies that data stored in the chain is permanent and can be verified. Therefore, manufacturers are using blockchain to add layers of accountability for their operations. For example, a manufacturing unit can use blockchain to promote transparency in the supply chain system.
Increasing Operational Efficiency
When you install a blockchain system, its decentralized nature means that you can eliminate the need for middlemen in different areas such as payments and supply chain. Unlike with the traditional financial systems, your customers will be able to send money and make payments on a peer-to-peer basis, without involving centralized systems. This method comes with several benefits:
- Because the transactions are peer-to-peer, they are completed faster.
- Since no centralized organization is involved, the payments can be completed faster and cheaper.
Today, blockchain is one of the most secure systems of record keeping. When a transaction is made on the public ledger, it is encrypted and added in the blockchain. And because the data is decentralized, it implies that it is kept in different computers that are distributed all over the world. Therefore, you are sure of one thing: you cannot lose the business information. Indeed, even if viruses or cybercriminals steal or damage other data, the information stored in the public ledger cannot be changed or destroyed.
Better Customer Engagement
When an organization adopts a blockchain system, it is more than a method of storing data. Further, it provides an opportunity to create forecasts that can help you address lags in the supply chain. The analytics can also be used to help boost customer satisfaction by establishing methods of building better delivery timelines.
In your manufacturing unit, blockchain technology could be the game-changer because of its diverse applications. Whether you have a new or established manufacturing as demonstrated here, it is time to consider implementing blockchain in your system.