In this world of digitalization, businesses and international trade are facing ongoing problems, like changing customer preferences and supply chains and securing customer data. One way that businesses can improve their efficiency is through the use of blockchain and digitalization.
Blockchain is a distributed ledger that allows for secure and transparent transactions between parties. It has many potential benefits for businesses, including reducing costs and improving the speed of transactions. In addition, digitalization can help organizations address business problems such as data governance and identity theft.
So read on to find out how you can fix problems with blockchain and digitalization by implementing it in your business.
Problems Businesses Are Facing While Trading Internationally
International trade is a big part of the world’s economy. Barriers such as language, currency, and culture affect goods’ prices, ease of business in another country, and people’s income.
Some of the more common problems while trading internationally include:
- Lack of information about the international marketplace,
- Lack of information about international currencies,
- Lack of knowledge about cultural differences
- The possibility of incurring high transaction costs
Apart from these above problems, people trading internationally commonly face these five challenges that they need to overcome:
- The difference in business culture & emotions
- Language barriers
- Global team management
- Inflation & currency exchange rates
- Government trade policies, foreign laws, political issues & relations
Ways Digitalization and Blockchain Help Businesses Solve Their Problems
Digitalization and web3 blockchain technology are already being used in highly regulated industries, such as the financial and healthcare sectors. But the blockchain will likely be used most widely in industries that are less regulated.
Here are some of the major ways in which Digitalization and Blockchain help overcome most of the key international business issues.
Makes Businesses More Transparent Than Ever
Blockchain’s greatest attribute is the ability to offer transparency, accountability, and efficiency. There has been a lot of speculation on how this type of technology can reform how businesses operate. However, most of the observations so far regard transparency and accountability as two pretty basic features for all businesses.
The true value that blockchain brings to a successful business is through its unique mechanism that does not require people or third parties to rely on each other in order to verify transactions or provide trusted input on anything from company growth to community wellbeing or customer satisfaction.
It essentially involves a worldwide network of computers that allows cryptocurrency (such as Bitcoin) to be transferred between entities and validated through cryptography. This creates unprecedented transparency for the electronic transaction and contracts sector in financial systems, companies, and businesses.
Ensures High Efficiency
Blockchain is an amazing technology whose capabilities have gone far beyond acting as the backbone for digital currencies such as bitcoin.
One of its main benefits is that it can automate time-consuming processes or transactions and solve human errors by using smart contracts. For example, Walmart used Blockchain technology to trace the source of sliced mangoes in seconds – a process that had previously taken seven days.
Payment Through Digital Channel Gets Much Easier
Blockchains and digital payment transactions are other obvious use for decentralized blockchains in business. This blockchain transportation challenges the need for paper-based billing statements and invoices, the partnership between blockchains and commerce makes them more broadly accessible to startups, giving them easier access to the greater payment.
Moreover, decentralized blockchain networks are beneficial when it comes to the implementation of digital technologies like integrated payments and electronic billing. Without blockchain, it would have been a little more difficult for startups to receive funds for their services or goods sold.
Betters The Recruitment Process
In recent times, more and more companies have recognized the value of blockchain in the recruitment process. This is because blockchain technology simply prevents photoshopping or forging of original documents. This speeds up the whole hiring process as they don’t need to manually check the originality of the documents and hire potential candidates faster.
One consequence of this is that companies are hunting for the best blockchain companies for hire and exploring how to connect them with their businesses.
Ensures Greater Security
Blockchain is more secure than other data storage systems because new entries are encrypted with a cryptographic hash function and linked to other data in the block. This allows for better organization and management of large amounts of data.
Each blockchain entry contains a time stamp, this provides evidence for transactions received at a certain time, therefore decreasing disputes and covering any outside transactions that could affect the blockchain.
Once the mathematical string number is formed, altering it is impossible. This makes the whole system a highly secured platform for business. More essentially, this technology is considered an incorruptible repository of information due to its distributed nature.
Enhances the Trackability & Safety of Goods
Blockchains are like cat scanners. Whenever you get scanned, an audit trail is present to trace where the goods have come from. Using a Blockchain ledger when trading will also help ensure security and support safety in trades.
This is particularly helpful within industries that are involved with supply chain management, such as meds or art collecting, because this technology can verify the authenticity of each traded product. For example, it can be used to link all products on the supply chain from manufacturer to distributor, which helps prevent counterfeit products from going into circulation and may even be used as a tool for keeping tabs on any legal matter or claim relating to a particular product.
Boosts Marketing Campaigns
When blockchain is applied to businesses, there are plenty of ways in which it improves how marketing campaigns are carried out. Blockchain business models help marketers in several different ways. One way is by empowering marketers to track a real-time record of data for both customers and clients that gives them the information they need, this helps them create efficient campaigns and help generate higher ROIs.
In addition, the use of blockchain in business also helps marketers authenticate traffic more easily. More authentic traffic means better ROI, which is why global business marketers should also use this.
Uplifts Engagement With Customers
Another way in which blockchain is revolutionizing the business industry (or will shortly) is in astute customer engagement. If you take a look at what global brands are investing in, they will have their own cryptocurrency and an integrated digital wallet so they can ease back on their money while also providing customers with extra perks or discounts when using them.
The integration of blockchain and customer engagement allows various opportunities and advantages to be established. These can be achieved by choosing the best Blockchain-as-a-Service provider.
This includes giving users the power to control their personal information, drawing upon a transparent business model, fostering fast transactions, and ensuring entrepreneurs and marketers know how to identify loyal customers and build trust accordingly.
To add to these benefits, the advantage of having a loyal customer base is revealed because customers who use your cryptocurrency are likely to be more involved with your company.
Helps In Proper Financial Management
The financial sector is one of the most important industries in the world, and blockchain technology has the potential to revolutionize the way it operates. As discussed and mentioned, Blockchain is a distributed database that allows for secure, transparent, and tamper-proof transactions. This could potentially make the financial sector more efficient and reduce the risk of fraud and corruption.
In addition, blockchain could help to streamline financial processes and make them more transparent. For example, banks could use blockchain to track payments and transactions and to verify the identity of their customers. This would make it easier for banks to comply with anti-money laundering regulations and could help to prevent crime.
Blockchain could also be used to create new financial products and services. For example, smart contracts could be used to automate financial transactions or to create new types of financial instruments. This could make the financial sector more accessible and inclusive and could open up new opportunities for innovation.
Overall, blockchain has the potential to transform the financial sector for the better. It could make it more efficient, transparent, and accessible, and could create new opportunities for innovation.
Utilize the Right Method of Digitalization and Blockchain to Support Sustainable Business Practices
No doubt, in recent times, across the web, blockchain is helping to change the way companies work together. With greater trust and transparency, everything from the supply chain to retail shopping is becoming more efficient. Blockchain is streamlining business processes by eliminating inefficiencies and penalties associated with bureaucracy.
According to a study by the World Economic Forum, the digital economy is equivalent to 15.5% of the global GDP, growing two and a half times faster than the global GDP over the past 15 years. This leaves enormous potential for improvements in efficiency and sustainability through digitization.
So, therefore, it is quite evident that the future of blockchain has exceptional prospects and possibilities for integrating your business with new innovative ideas and concepts. All this will integrate with the existing ones making the existence of it ever-lasting in the market of modern-day business technologies.
Mortuza is a certified Digital marketer with a Master’s degree in International Economic Relations (Spec. International Business).
An entrepreneurial professional, crypto native, and deeply involved in web3, i.e., blockchain, NFT & metaverse community. The author spends hours researching all the exciting new trends in the broader business world.