What is Blockchain & How will it help the IT industry and B2B companies thrive?

The blockchain is a shared immutable ledger for recording the history of transactions that cannot be altered. Transactions take place every second; orders, payments, account tracking. Often, each participant has his own ledger; and, thus, his own version of the truth. Having multiple ledgers is a recipe for error, fraud, and inefficiencies. The goal is to see a transaction end-to-end and reduce those vulnerabilities. 

Blockchain is better than "transactions"

The blockchain is a single shared ledger that is tamper- evident. Once recorded, transactions cannot be altered. All parties must give consensus before a new transaction is added to the network. It eliminates or reduces paper processes, speeding up transaction times and increasing efficiencies. All of that said is quite opposite to typical transactions that always carry the risk of human errors and misses.

The most disruptive tech in decades

Blockchain is poised to change IT in much the same way open-source software did a quarter of a century ago. And in the same way that Linux took more than a decade to become a cornerstone in modern application development, Blockchain will take years to become a lower cost, more efficient way to share information between open and private networks.

But the hype around this seemingly new, secure electronic ledger is real. In essence, blockchain represents a new paradigm for the way information is shared and tech vendors and companies are rushing to figure out how they can use the distributed ledger technology to save time and admin costs. Numerous companies in 2017 began rolling out pilot programs and real-world projects across a variety of industries - everything from financial services to healthcare to mobile payments and even global shipping.

How does Blockchain Technolgy help B2B companies?

For B2B companies, it can be a virtual bank—moving money, accepting deposits, completing transactions and more. This differs from online banking where your business is subject to regulation, monitoring, business hours and other restrictions.

Quantifiable substantial savings. B2B merchants in retail or online need the cost savings promised by blockchain dealing. First and fundamentally, it speeds the transaction, immediately moving the customer payment to the vendor. Second, this speed ripples back through the supply chain and forward to the customer’s satisfaction. Third, it facilitates distribution and logistics, increasing efficiencies down the line. And, fourth, by bypassing credit card processors and other merchant services, blockchain reduces the overhead reflecting the price of service. 

It is more secure than you can imagine. Phoebe Luckhurst insists, “The future is in the chain.” But she also admits that the blockchain is only as good as its code, and codes have been cracked. Goldman Sachs agrees on its credibility, calling it “a faster, safer way to verify key information and establish trust.” And Professor Kevin Werbach at Wharton refers to “a new architecture of trust,” a system where you do not deal with an intermediary person, institution or authority.

More efficient supply chains. The blockchain is open to all members of the network. An IBM report notes, “This ‘shared version of events’ enables improved supply chain efficiencies, better multi-party collaboration, and streamlined resolution processes when exceptions or disputes occur.” It does not replace legacy chain supply software, but it engages new realities like the expanding data flows presented by the Internet of Things.

Improvised sales. “The B2B sales process is based on relationships and responsibility,” said Jeremy Epstein, blockchain marketing expert and CEO of blockchain consulting firm, Never Stop Marketing. B2B sales relationships are ongoing, have a longer lifespan, and in general, require a longer sales cycle than B2C sales. “Trust is essential to B2B sales success and blockchain technology represents a way to expedite the creation of trusted relationships at lower costs” he continued. His eBook, The CMO Primer for the Blockchain World, points out that only 50% of businesses check buyer creditworthiness, request secure forms of payment, or both. And 81.5% of companies report employing credit management policies to mitigate trade risks.

"The world is now open for business", this statement makes more sense than ever. Well yes, Blockchain is a radically better financial system that has powered over 100M transactions and empowered users in 140 countries across the globe to transact super fast and without any costly intermediaries.