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  • Writer's picturePatrick Drenkelforth

How Users benefit from blockchain?

How Users benefit from blockchain

With so many benefits to reap from blockchain technology, it’s no surprise that industries from finance, logistics and automotive are racing to implement this innovative new technology.

Blockchain has the potential to become a catalyst for peer-to-peer transactions, collaboration, transparency and trust. By giving individuals and businesses the opportunity to exchange value without central intermediators, blockchain is bringing exciting progress to large scale businesses and interoperable ecosystems that work together on a global scale. In fact, already today we are seeing blockchain used to enhance loyalty programs, supply chain visibility, product transparency, lower costs, and more.

Let´s see some Blockchain benefits for you…

1. PRODUCT AUTHENTICATION

Consumers have no idea whether or not the products they purchase are authentic or if they’re being duped.

However, in the age of Blockchain, consumers are becoming increasingly conscious of the origin of products they buy and can now be assured of product authenticity., which makes this type of tracking crucial to build trust in brands and ensure they meet ethical standards.

A product owner can tag a product and register it to a Blockchain account. Then, as the product goes through its journey from production to distribution to retail, every step can be tracked through Blockchain.

When a consumer purchases that product and scans it, the scan will reveal the item’s journey from creation to sale. Consumers are now assured that their products are authentic because they can trace its origin along the entire supply chain.

2. SUPPLY CHAIN VISIBILITY

Industries such as retail and wholesale, food, and manufacturing are among the early adopters of blockchain technology. One of the first steps in creating a blockchain solution is to identify their key participants.

Supply chain visibility is not just about knowing where your products are, but also being able to track each physical object to its origin. This can help ensure compliance with regulations and improve product quality.

As a manufacturer or supplier, blockchain-based solutions can help you gain real-time insights into your global supply chain network by providing an immutable audit trail for every transaction, as well as the ability to track the history of products and transactions. You will be able to identify where your products are in real time while they’re en route to their destination.

3. PRODUCT TRANSPARENCY

Currently, it's very hard for shoppers to know where and how their clothing, food or electronics were made. Will blockchain change that?

Blockchain offers the ability for consumers to get accurate and timely information about their products. This allows them to make informed decisions about what they are buying. It also allows them to know exactly where their items are coming from and how many items have been sold.

For consumers, blockchain has the potential to usher in an era of product transparency. Already, some companies are using it to track products at every stage of production.

For example, De Beers, a diamond company based in London, created a blockchain platform to prove the authenticity and origins of diamonds. Now when consumers buy a diamond from De Beers' jewelers, they receive a certificate of authenticity that includes a digital record of each step in the diamond's journey — from the mine to the polishing wheel. With blockchain, customers can rest assured they're getting what they paid for — a real diamond.

4. Lower Costs

Blockchain-based applications provide users with direct ownership of their digital assets. The immutability and decentralized nature of these systems make it easier for users to verify the authenticity of information, reducing the need for third party intermediaries (e.g. notaries).

This lowers the cost for both consumers and businesses, as typically about 30% of a transaction's cost goes toward the intermediary's fees. This allows to save money on transaction fees compared to buying and selling with fiat currency through banks or credit card companies.

The blockchain is a trusted ledger that updates itself in real time. Because blockchains are transparent, every transaction can be audited and validated to ensure its accuracy. The absence of a central authority also prevents any single party from having control over the network and adding unnecessary overhead costs.

5. Loyalty Programs

On the blockchain, transactions are visible to participants; however, identities of participants are kept private on the blockchain through digital addresses. The ability for businesses to interact with customers without storing their personal information could dramatically increase customer engagement and trust in the business.

Loyalty programs are a great way to keep customers engaged and interested in your business. However, these programs can be expensive to maintain and often result in customers quitting after only a few points have been earned.

Blockchain can help loyalty programs by lowering costs, keeping customer data private, ensuring transparency, eliminating the need to manage multiple loyalty accounts.and allowing users to have more control over their information.

A blockchain-based system would allow a consumer to hold all of their loyalty points in a single wallet. The consumer could then use a single application to pay with loyalty points at any participating retailer, regardless of the retailer's current loyalty program.

This maintains the benefits of existing loyalty programs while enhancing the consumer experience by eliminating user-specific accounts so that both individuals and businesses can focus on better customer service rather than managing accounts.

Bottom Line

In summary, Blockchain technology can help with users’ needs of trust and authenticity.

Blockchain technology is already being adopted by many experts, companies and governments. Thanks to its architecture and decentralized network, offering greater transparency and improving product tracking, the technology can be used in multiple industries. This can provide better security for products, health information or power systems, resulting in a wide range of benefits to society.

Specially, Consumers can benefit from having a decentralized system. What other benefit do you see about Blockchain?

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