How Blockchain Technology Can Change B2B for the Better?
The business world has recently grown and expanded with many new developments and trends. In global supply chains, financial services, healthcare, government agencies, and many other industries, innovators are looking to use blockchain to destroy and transform traditional business models.
Many industry leaders have already realized significant business benefits such as greater transparency, enhanced security, improved traceability, more efficient transactions, and lower costs. Here are the main reasons to justify this point how Blockchain Technology Can Change B2B for the Better?
B2B process improvement strategy
B2B (Business-to-Business Transactions) Companies often deal with unnecessary complexity. Industry giants like Alibaba are still using outdated technology to process their processes. The widespread adoption of blockchain technology in this industry can improve the process and reduce costs for companies. As global commerce grows, complexity and the number of stakeholders increase.
Companies can benefit from implementing innovative solutions to increase their competitiveness. One of the many process improvement strategies is to save time and streamline international transportation. Other examples of cost savings include automation and improved supply chains. Once a buyer orders a product, the transaction may take several weeks to be finalized. The usual middleman delays the process. Lawyers, bureaucrats, distributors, banks, etc., may unnecessarily delay transactions. B2B process improvement strategy justify for the answer to our question of how Blockchain Technology Can Change B2B for the Better?
Alternative payment method
Before the advent of blockchain-based currencies, sharing and receiving money was difficult. Today, cryptocurrencies are commonly adopted as alternative currencies, and shoppers can make payments in Bitcoin just like PayPal, Stripe, and other payment processors. Unlike traditional currencies, Bitcoin brings various benefits to customers and dealers, allowing them to share and receive money quickly as they share QR codes.
Request Network is also introducing blockchain technology into the financial trading aspect of the e-commerce industry by providing cost-effective financial transactions, high-security standards, and an overall superior customer experience.
Blockchain trading runs on the leading & single network and eliminates the need for third-party involvement. The speed of online transactions is controlled by the network speed and the speed at which new blocks are formed. In addition, blockchain technology includes various systems, which can reduce costs such as IT support and management work.
Also, cryptocurrencies such as Bitcoin, Bitcoin Cash, and Litecoin are very cheap compared to traditional currencies. Thus, by reducing the cost of trading, customers and shop owners can start to save a lot.
Increase efficiency and speed
In traditional paper-based processes, transactions take time, human errors are likely to occur, and third-party mediation is often required. You can conduct transactions quickly and more efficiently by simplifying and automating these operations with blockchain. Records management uses a single digital ledger that is shared between participants, eliminating the need to match multiple registers and resulting in less clutter. And when everyone has entry to the same data, it’s easier to trust each other without needing a lot of intermediaries. In this way, clearing and settlement can be carried out more quickly.
The use of blockchain technology will improve the transparency of transaction history. Blockchain is a distributed ledger, so it is in contrast to individual copies, where all network participants share the same documents. The shared version cannot be updated without consensus, that is, everyone’s consent. To change one transaction record, it is necessary to change all subsequent documents and the collaboration of the entire network. Therefore, data on the blockchain is more accurate, consistent, and transparent than if it were pushed out through a paper-intensive process. It is also available to all authorized participants. All subsequent records must be changed to change one transaction record, and the entire network must collude. It can be a headache.
Blockchain technology in the Supply Chain
Digital change offers companies a great deal of room to reorganize their supply chains. Blockchain can be an essential building block that could become one of the game changers as it differentiates itself from its competitors in the coming years.
The decentralized nature of blockchain creates maximum transparency in all transactions of the supply chain, from sourcing and production of raw materials to distribution and sales of end products. Each transaction can be quickly and easily recorded on the blockchain at a fraction of the cost. It reduces risk and allows end customers to track their product’s source throughout the supply chain.
By raising blockchain technology into the supply chain, we can ensure the transparency of recorded data. For this reason, blockchain technology is expected to be a significant advantage for retailers, e-commerce platforms, and customers.
Improved order fulfillment
One of the main advantages of incorporating blockchain technology into e-commerce platforms is that each block of the blockchain is linked to the previous block. It creates a chain of visible events that faithfully reflects the process of processing orders.
For example, if a buyer puts an order on a blockchain-enabled e-commerce site, each step of the order process adds a new block to the chain for the time needed to perform a particular action. When a customer orders something in blockchain-based e-commerce, the marketplace generates a block as proof of the work as soon as the customer selects a product and enters delivery information.
Final Words: How Blockchain Technology Can Change B2B?
Blockchain has a decentralized nature. It can increase transparency. Customers and retailers have access to information about shipment tracking at any time. Retailers can always know where their inventory is, which is especially useful in the e-commerce industry. The retailer can also determine when the goods arrive and whether the vendor supplies the correct goods. When do these questions emerge in our minds? How Blockchain Technology Can Change B2B for the Better? Is any B2B platform available in the world which uses the blockchain method? According to my search recently, one platform known as JiffyStock is providing its customers with a crypto method based on blockchain technology. JiffyStock also published their whitepaper in which they explained their mission and vision. According to their whitepaper, it is just the start of the project, and soon they will launch the new technologies in B2B. From the all above discussion we can easily get the answer to question How Blockchain Technology Can Change B2B for the Better?