How to utilize web3 as a business

Why businesses should make use of Decentralized Applications (dApps).

The advent of blockchain technology is transforming conventional business operations, with the introduction of secure, transparent, and decentralized platforms that simplify procedures, decrease expenses, and improve productivity. At the core of blockchain technology are decentralized applications (dApps), which operate on a distributed network of computers sans centralized authority.

Throughout this piece, I’ll dive, head first, into a handful of imperative dApps available for companies seeking to maximize the benefits of blockchain technology.

Platforms for Smart Contracts

Advanced technology in the form of smart contracts allows for contracts to self-execute as agreements are directly recorded as a code. The likes of EOS, NEO, and Ethereum provide businesses with an innovative platform to automate contractual duties, minimizing the need for intermediaries. Resultantly, this has led to cost-saving measures and streamlined processes making business operations more efficient.

A smart contract platform can be employed by businesses to establish an automatic payment system where payments are released to suppliers when they have met their contractual obligations. By doing so, there would be no requirement to make manual payments, which would cut the risk of errors or fraud.

Smart contracts possess multifaceted applications that can lead to the development of intricate business procedures, specifically in supply chain management. Through a smart contract platform, enterprises can establish a decentralized network to automate the monitoring of merchandise from the producer to the eventual purchaser.

Industries such as food and pharmaceuticals demand elevated levels of transparency and accountability in their supply chains. As a result, ensuring these qualities is crucial, as they help to maintain the credibility of the supply chain.

Transparent flow management

VeChain, Waltonchain, and Ambrosus are distributed applications that assist in the managing of supply chains. By monitoring products from their source to the consumer, these dApps maintain transparency and responsibility within the supply chain, helping to avoid deceitful practices like product counterfeiting or stealing. These types of fraudulent activities can negatively impact a company’s image.

The implementation of blockchain technology in these dApps generates a clear and unalterable history of every transaction made throughout the supply chain. This is immensely helpful for corporations to keep tabs on the transportation of products at all times and quickly pinpoint any problems or inconsistencies that could emerge.

A supply chain management dApp can help food companies to monitor the entire journey of produce, right from its source to the supermarket. The application can collect data related to the produce origin, harvest date, and the temperature at which it was transported.

The verification of authenticity and quality of products is essential for ensuring food safety and regulatory compliance, thus making the information valuable.

DeFi

Decentralized finance (DeFi) dApps such as Compound, Uniswap, and Aave provide businesses with access to a variety of financial services like trading, borrowing, and lending without depending on centralized middlemen like banks. This has the potential to lower transaction costs and boost transaction speed, thereby simplifying financial management for businesses.

Decentralized finance (DeFi) applications leverage blockchain technology to establish a financial system that is transparent and without intermediaries. Such a system bridges the gap for businesses looking to acquire financial services that aren’t readily accessible via standard banking channels.

A DeFi dApp presents a valuable option for small businesses, enabling them to bypass the arduous and time-consuming traditional bank loan application process. Instead, borrowers utilize cryptocurrency or other assets as collateral, which are held in a smart contract until the loan is fully repaid.

Decentralized Identity (DID)

Civic and uPort, among other decentralized identity (DID) dApps, bring in a secure and decentralized method of managing and confirming identity. Utilizing these services can aid corporations in avoiding identity theft and fraud, particularly helpful for financial agencies or healthcare providers who handle sensitive information.

Blockchain technology enables DID dApps to generate distinct decentralized digital identities for each user, which are secure and unalterable. This solution empowers organizations to authenticate users without relying on centralized identity providers that are vulnerable to security breaches and cyber-attacks.

One potential use case for a DID dApp is in healthcare, where it can authenticate patients’ identities and ensure the authenticity of their medical records. By integrating biometric technology like facial recognition and fingerprint scanning into the app, the patient’s identity can be verified securely. All medical records can be stored on a decentralized blockchain network, protected by strict access privileges for authorized users only.

No-authority storage

Storj, Filecoin, and Sia are decentralized data storage dApps that securely store data, reducing the risk of cyber attacks for businesses. Unlike traditional cloud storage providers that use vulnerable centralized servers, these dApps rely on a distributed network of computers to safeguard information from hackers.

Businesses that handle confidential data like financial institutions and healthcare providers can benefit greatly from decentralized data storage dApps. With such applications, businesses have greater autonomy and privacy control over their data, allowing them to select the location of their data storage and specify access permissions.

A decentralized data storage dApp provides financial institutions with a secure and safe solution to store sensitive customer data, including account details and transaction records. The data is encrypted and dispersed across a network of computers, eliminating threats of hacks and data breaches.

Some takeaways

Organizations are experiencing a revolutionary shift in their mode of operation with the swift emergence of blockchain technology and dApps. These platforms provide businesses with a decentralized and trustworthy network that can significantly reduce expenses, simplify workflow procedures, and enhance overall productivity. Smart contract platforms can automate contract terms, while supply chain management dApps can uphold transparency and duty in the supply chain.

Businesses can benefit from decentralized finance (DeFi) dApps, which provide access to various financial services. Meanwhile, decentralized identity (DID) dApps enable the secure management and verification of identities. Additionally, decentralized data storage dApps offer a way to store data securely and in a decentralized manner, mitigating the risks of data breaches and cyberattacks.

The utilization of blockchain technology and dApps can give businesses an upper hand in the current fast-moving business world. It necessitates a change in perspective and infrastructure; nevertheless, it lays the potential for huge benefits that can help businesses operate with greater efficiency, security, and profitability.