Imagine a huge network of distributed systems where data transfer is highly democratized and encrypted. This is the backbone of the blockchain. This disruptive technology is the new internet and has immense possibilities. In the blockchain network, every system that is online will be treated as a ‘block’ and data of any sort emerging from any system in the network will be stored in all the systems with heavy encryption. This paves the way to a transparent system of data transfer and storage where even if a hacker tries to corrupt information from one system, immutable other systems will have the original record, again, in its highly crypted version. This is a basic understanding of what a blockchain is.
Now, why is this a disruptive technology? Trade and Commerce as we know, runs on transactions. Imagine if we could translate these transactions into blockchain to achieve a highly democratized version of the e-commerce bubble. Since there is no central authority or authorities to mandate the flow and storage of data, transactional costs or what lengthens the product and service flow from the maker to the consumer will cease to exist. On an application level, all the third-party businesses that run solely on transactional fees will die a poetic death.
This technology is gaining exponentially accelerated acceptance as we speak. Stock markets are trialing blockchain powered private markets. Market projections today predict that value addition in business and trade by blockchain will reach a soaring height of 3.1 Trillion USD by 2030. So, if you have a business that has anything to do with customer experience, now is the right time to delve deeper into this transformative technology and reap its fullest potential. These are examples of how blockchain will augment customer experience across various industries.
1. Product and service delivery:
Sending and receiving products will be highly democratized. There won’t be any interference from middlemen and businesses. This will give rise to micro-entrepreneurship and sellers and consumers can now directly transact. This will create for reasonably better margins for the seller.
Financial transactions between two individuals happen not with a central authority like a bank. The record of a financial transaction or exchange of value happens across the nodes in the system and not in a centralized server of a bank. We’ll open up to a world of no banking and transactional fees for the exchange of value. There will be transparency and security in the transactions that the existing systems fail to implement correctly.
2. Services and contracts:
Just like how the movement of physical goods can be initiated through blockchain, services and contracts can also be made into blocks and delivered using this technology. Say if you want to sign up for a cable T.V service, the service contract can be initiated and stored in a block chain and since the system is transparent and secure, it will demand the service provider to be on their toes to deliver the service within the stipulated time and up their game to increase customer delight.
3. Customer data:
With the systems being distributed and not isolated to a single or array of servers, data regarding your customers are safe and secure. Since the authority over the data isn’t entrusted upon a single entity, data theft and data compromise issues for organizations and customers alike becomes a distant possibility.
4. Banking & Finance
Blockchain not only reduces the paper-intensive trade and finance process, but it also reduces fraudulent activities. It facilitates smart contracts and increases the efficiency of clearing and settlements. This technology can also transform the payment process by allowing banks higher security with lower costs. With blockchain technology, it’ll become easier to get rid of all intermediaries in the payment processing system.
Looking at the bleaker side, Blockchain with conventional computing technologies could give rise to a lot of infrastructural costs. But as quantum computing is exponentially reaching ground reality, the medley of these two will give rise to a democratic and neo capitalistic future that will shave off the evils of profiteering and destructive capitalism. So, investing in such a future is not only good for business and customers, it’s good for humanity at large.