Blockchain and Transparency: Why It Matters for Modern Businesses

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Businesses

When it comes to legitimate business, trust and credibility are of the utmost concern, especially to potential clients. That means that wherever possible along the chain of processes, there needs to be as much transparency as possible. 

Blockchain was initially born as a way to assure customers dealing with an invisible currency that everything was above board. To do that, it had to be infallible and unable to be tampered with. This lends it the perfect characteristics to be used in other applications to build trust and also to hold businesses accountable.

The move towards blockchain is already taking place in a number of industries, especially in supply chains, and 61% of companies believe it provides competitive advantages. Let’’s explore how and why.

How Does Blockchain Work?

To understand why blockchain is set to revolutionize business transparency, you first need to know what it is, and how it works. Blockchain can be thought of as a distributed ledger technology that records transactions like its paper ledger counterpart, except that no one person has the ability to change an entry. 

The data is kept across multiple computers, meaning no one can alter it; if they do, it can be seen and traced. This allows businesses, suppliers, third parties, and clientele to operate confidently, knowing that the data is accurate and verifiable independently.

Blockchain Technology Features

The following three features are what give blockchain technology operation its unequivocalness:

  • It is decentralized and therefore governed without bias, no single entity has authority over the data.
  • Once data is entered into a blockchain, it is immutable – it can’t be deleted or changed.
  • Blockchain is protected by advanced encryption to keep transactions secure and verifiable.

With these three attributes, blockchain transaction records make business about as black and white as can be.

Why Business Transparency Is Necessary

If you are able to offer transparency, then you build long-term loyalty, which means customer retention. It isn’t just a case of the right thing to do; having this ethical accountability and demonstrating you care about keeping your customers in the loop gives you an advantage.

94% of surveyed consumers have revealed they would feel instantly more loyal to a transparent brand; at the end of the day, the public wants clarity so they can make informed decisions.

Beyond Customer Trust 

It isn’t just about customer trust either – businesses need stakeholders and investors to trust them if they want to thrive. They also have a duty to their employees. 

Blockchain brings this trust to the table because it is an unchangeable record – it means that goods, for example, can be tracked from manufacturing to retail, with zero chance of anything hidden.

Mitigating Fraud and Corruption

With such transparency, corruption is almost impossible, so you get the primary benefit of fraud mitigation. 

No one can manipulate or exploit things when parties have access to an accurate, trustworthy record that they are sure hasn’t been doctored and can’t ever be. Innovations powered by XAI770K in AI and Blockchain are transforming industries, bringing unmatched security and transparency to finance, real estate, and healthcare.

Extra Efficient

Using blockchain also helps to streamline a range of internal operations, efficiently providing real-time updates, and the decentralized nature and accuracy mean that errors are reduced as well.

Transactions are instantly verifiable from within the company and can be checked without relying on third-party intermediaries. This makes contractual agreements far more efficient.

Blockchain Business Applications

Many industries are already embracing blockchain in their supply chains and audits, below are 3 major applications.

Managing Supply Chains

Blockchain allows businesses to fully trace the movements of products and make sure that every step along the way is verified. 

Retailers have an authentic record, and customers can see how and where products were sourced. A blockchain record helps with businesses and brands looking to promote sustainability or ethical sourcing, building customer loyalty, brand recognition, and trust.

Financial Audits

With blockchain, there is no “cooking the books” – financial audits are secure and traceable, reducing the likelihood of fraud.

Transparent records put everyone’s minds at ease in terms of trust and potential corruption, and they also reduce the potential for accounting errors, making auditing easier.

Securing Healthcare Records

Healthcare organizations are increasingly turning to blockchain to ensure the transparency and security of patient records. 

Blockchain ensures that medical records are stored securely and remain accessible only to authorized parties, preventing unauthorized alterations and improving patient trust in healthcare providers.

Complementary Tech

Blockchain is a great solution for data transparency, but to ensure absolute security of the data transmitted, the use of Virtual Private Networks (VPNs) such as Surfshark can help, especially over public or shared networks.

Conclusion

Gone are the days of a handshake agreement and accepting someone as a “man of their word”. Blockchain brings transparency like never before into the equation because it is a fully traceable and unchangeable record.

Customers are more educated these days and want to know where their goods are coming from, and blockchain is a great way to show a product’s journey – from start to finish. This gives businesses, especially those who are promoting ethical operations, a way to show their clients they are practicing what they preach. With the greater trust and accountability provided by blockchain, businesses have an advantage in a trust market.

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