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How blockchain will change the way companies communicate

Previously, companies stored data centrally, which made it difficult to work with information and, as a result, led to higher costs. With this approach, companies had to resort to the services of intermediaries, which increased costs for companies and led to higher prices for products.

Blockchain & nbsp; allowed not only to improve the process of processing information for different companies, but also to change the very principle of communication in the business environment.

Thanks to the decentralized way of storing and processing information, companies have the opportunity to get rid of intermediaries and reduce operating costs. At the same time, the time spent on data processing was reduced, which allowed many companies to interact more effectively with each other, as a result of which they can increase their profits.

The potential of blockchain technology for business is very great. The advantages include the following characteristics of a distributed data processing method:

  • Transparency . Direct access to data speeds up business processes and reduces costs;
  • Scalability . The system can be expanded to quickly handle large data flows;
  • Security . Decentralized data exchange prevents third parties from interfering and falsifying information;
  • More efficient processing & nbsp; cross-border payments .

In this article, Amil Capital Group will explain in detail how the blockchain can change the very principle of company communication and thus help improve business processes.

But before diving into the details, you should understand what problems modern companies face in various fields, such as logistics, telecommunications and other spheres.

Key issues of modern business

Inaccessibility and fragmentation of information in the business environment

Modern solutions have helped companies to establish internal communication between employees. But what if we are not talking about interactions within the enterprise, but external relations, which include interaction with suppliers, buyers, investors and business partners? Here the situation is much more complicated. Companies cannot quickly track all interactions of the company, both internal and external, in real time.

Problems with the distribution of responsibilities in remote collaboration

More and more companies are switching to remote collaboration mode. Many employees choose to work flexibly from home. In fact, it is beneficial for both employees and the company: firms do not need to maintain offices, so they can provide higher wages for employees, which can increase their motivation.

This will also play a positive role during crisis situations. Recent events related to the spread of & nbsp; COVID-19, & nbsp; led to record unemployment rates. This prompted people who had not previously considered remote work to try to master the new online mode.

However, business during this transition period had to face a number of problems that arise during the team organization of work. When it comes to assigning tasks, there are no obvious problems. Problems arise when it is required to assemble the entire team to discuss and solve a common problem. Many work different schedules and live in different time zones, which makes collaboration difficult.

Communication gaps

Bosses tend to make appointments to discuss tasks. But each such meeting takes a lot of time, which leads to potential losses for the company. Employees have a completely different view of this issue and view these processes as micromanagement, which is a waste of time and only delays work.

Decentralized applications based on blockchain technology optimize communication between employees, partners, investors, customers and suppliers, helping the business at all levels and keeping it in the most stable state.

How blockchain improves communication in the business environment

Centralized access significantly degrades business communication. Imagine a situation where you need to urgently request information from a supplier about the status of a shipment. But at the same time the company cannot get in touch with the delivery driver. In addition, you need to spend a lot of time to contact the department, request and then receive the necessary information.

With this approach, you spend a tremendous amount of time and communication costs. In the blockchain, it would be enough to define access rights for this information, and at any time you could get information about the current state of supplies, bypassing intermediaries.

Decentralization

Blockchain provides a single database where all information will be collected and transparently stored, for example, about deliveries, routes, transported cargo, date and time, driver, as well as the status of transportation. In addition, such a system does not have a single access center, so the system will maintain operability even if there is no connection with some nodes.

For example, you want to view the report of an employee who is on his node, but he is off. In a typical organization, you would have to call the employee and wait until they can provide a report. But the distributed approach avoids this, since you can download the report from any other node.

Transparency

Another important property of the blockchain will be data transparency. This means that information is written to the blockchain in the form of a block hash and becomes available to any user. Of course, there are private and hybrid blockchains that corporate networks need to protect the privacy of business information. But we are talking about traditional public blockchains, in which information cannot be changed without the consent of other users, which ensures the accuracy of information and protects against forgery.

The same applies to the purchase of valuable things. Blockchain will make sure that you are getting an original and quality product, and not a fake. This practice is common in areas other than retail: copyright, healthcare and medicine, logistics and politics (voting).

One example of large companies using blockchain in their business is the wholesale and retail giant & nbsp; Walmart .

The company has developed a transparent system for the food supply ecosystem that eliminates many of the problems that customers and suppliers face: customers will be able to track all information from the production stage to the conclusion of the inspection. To do this, they just need to scan the product. The system has so far been successfully used to track mangoes sold in US stores and Chinese pork.

Flexibility of production systems

I have already talked about the fact that the blockchain allows you to deploy hybrid systems that determine data access rights. In corporate networks, it is possible to configure access in such a way that information is available only to a limited circle of people who manage nodes using private keys. This provides reliable protection against unauthorized access to data by third parties outside the corporate ecosystem. & Nbsp;

Smart Contracts

With the advent of smart contracts, companies have the opportunity to conclude secure transactions with clients and partners without resorting to the services of intermediaries who charge commissions. A smart contract automatically monitors transactions and guarantees their completion as soon as both parties fulfill the conditions specified in the contract. This makes business interaction more efficient from an economic point of view due to the fact that it reduces costs and time spent on finding intermediaries, negotiating terms and concluding contracts.

Security

And finally, one more key feature of & nbsp; blockchain systems & nbsp; – safety. Many platforms are regularly exposed to hacking and fraudulent activities, as despite enhanced security measures, cybercriminals continue to find new, more sophisticated ways to trick users.

The operation of the blockchain network is supported by multiple nodes, this practically excludes the possibility of hacking, since such systems do not have a single point of failure, access to which can disrupt the entire system.

In addition, the work of blockchain systems is based on cryptographic methods of protection, for example, using hashing, which significantly complicates the process of breaking and intercepting data. One example is the Signal project, which organized a seamless and secure communication method in mobile applications, thereby revolutionizing the mobile platform market.

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