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5 Questions To Ask Before Starting Your Blockchain Journey

Blockchain-LeadMagnet

Are you worried that your competitors discovered a secret that allows them to be more transparent and secure within their organization and with consumers?
 
Do you remember when retailers kept calculators next to their register and used cash for most of their transactions — before the point of sale terminals took over and cards replaced cash?
 
Imagine what happened to the retailers who waited to make the switch. Consumers came in with a card to swipe, but the store hadn’t embraced the new technology, so they lost the sale.
 
Don’t be like those retailers!
 
Blockchain technology will have the same effect, but with a major difference. Companies won’t be in danger of losing the sale - they will be in danger of being displaced. As blockchain technology advances, smart companies will embrace the change. They will build relationships with other companies who have also embraced this new way of doing business. These relationships will advance and, over time, make it much more difficult for companies to catch up if they miss the train now.
 
Don’t miss out on opportunities because you delay adopting a new technological innovation.
 
Switching to a decentralized networking system is not a small or straightforward task. It requires forward-thinking, investment, planning, and an understanding of blockchain technology.
We compiled this list of questions you need to ask yourself before moving forward with your blockchain journey.

How Can Blockchain Enhance My Industry Value Chain?

value-chain


Blockchain’s purpose is to balance power between the institution and the creators of data. By doing this, blockchain enhances an industry’s value chain.

In retail, for example, current problems with transparency and product tracking make it easy to over-order supplies as well as unintentionally purchase knock-offs or illegally-obtained merchandise.

The current setup makes it challenging to know the real value of a product. Information either gets lost or buried in other details, and the retailers in supply chains take the losses.

With blockchain technology, vendors can track everything related to the products they purchase. They can access information starting with the raw materials used all the way to the final purchase and delivery of their products.

This helps the vendor know the history of the product. They can view the full supply chain and restock with high-quality products that keep customers happy and optimize profits. 

All organizations can benefit from switching to blockchain, not just retailers. Musicians and organizations within the musical community are other excellent examples of how blockchain will enhance the value chain.

With blockchain technology, musicians will quickly receive their royalties from sales, venues will slow the sales of counterfeit tickets, and record companies will see who is downloading music illegally.

How Can Blockchain Affect My Relationship With Customers and Vendors?

How Can Blockchain Affect My Relationship With Customers and Vendors?Thanks to its transparency and security, blockchain can build solid relationships between customers and providers in all industries.

Blockchain technology holds businesses more accountable for the products they offer. It also creates a safer space for consumer-provider interactions with its almost tamper-proof technology.

Organizations using blockchain are more reliable and customers will find them more trustworthy.
Blockchain helps establish trust between customers and vendors with features such as Smart Contracts. Smart Contracts, through blockchain, can track the status of obligations between parties. Once one party performs a required transaction, Smart Contracts triggers the “if or when” action of the second party.

An excellent example of this is a service-based company.

Let’s say your company signs a Smart Contract with a consumer. The consumer is supposed to pay a certain fee by a specific date, and if they do, your company will show up and perform a service — like a cable installation.

If you don’t show up on the day or time promised, the Smart Contract will then initiate a refund or whatever the terms of your contract stated.

It is easier for a customer to trust an organization when something automated like this is in place. It reassures them that the company will deliver.

What Will Be the Impact if My Competitors Start Using Blockchain Capabilities Before Me?

competitive-advantage


In today’s market, customers are cautious about what they spend their money on.

They want to know that their clothing wasn’t produced using sweatshops and child labor.
They want to make sure their food is free of harmful and unnecessary additives.
They are concerned with how eco-friendly the merchandise they use is. Is it sustainably sourced?

If your competitors provide information like this with every transaction, the consumers will shop with them instead.

People want to interact with trustworthy, transparent organizations, and they will remain loyal to companies providing them with reliable information about their products or services.

Trust in the product is not the only thing you will miss out on by delaying your switch to blockchain.

Organizations using blockchain can add more value to their product and improve distribution to their clients. They also have a competitive advantage because they offer a more efficient equilibrium, fairer pricing, and faster transactions.

What Kind of Options Exist To Apply Regulations and Visibility of the Information?

visibility-regulation


Some companies might fear that technology like blockchain provides too much transparency. Maybe your company has a secret recipe or formula, and sharing it with the public would hurt your business.

Let’s say Coca-Cola is using blockchain technology. They have set up their transparent, trustworthy decentralized network, but now they fear that the transparency is too much, and they might expose the recipes to their beverages.

Coca-Cola doesn’t have to worry! And neither do you.

A company can set specific regulations within its blockchain. If your organization is following the rules, then you are in control of what you want to share. You determine what is made visible to the public.

How Can Blockchain Overcome Performance Issues?

Every promising, world-changing technology must overcome challenges and prove itself capable of quickly and efficiently solving performance issues. The first blockchain-powered public networks (Bitcoin 2009, Ethereum 2015) had speed as an obstacle to overcome.

 

Performance-1

Two Strategies for Speed

To address the problem of speed, two complementary strategies were developed: sidechains and blockchain consortiums.
 

Sidechains

Sidechains are high-performance, private blockchains that perform and save some operations concurrently to then upload the final result onto the main public-access blockchain.
Sidechains increase both speed and overall performance.
 

Blockchain Consortiums

Consortiums are configurations that use highly-efficient consensus algorithms designed for semi-private environments. These were devised to generate business consortiums that define their own rules and data governance, which increases user control and empowers faster speeds and more control over data.

We Can Help Build Your Blockchain


Even if you struggle with IT, you can learn everything you need to know about blockchain in a creative, 2-hour workshop led by Nisum’s Head of Blockchain, Sebastián Martínez. We will help you identify real-world applications, learn the principles behind blockchain, and put the theory into practice.

If you are interested in gaining valuable insight into this new cutting edge technology, sign up for our workshop today.

 
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