PRODUCT PROTOCOL: Commercial use of blockchain

In this article, the Product Protocol CEO — Alexander Kirvas— is going to talk about the benefits blockchain technology and the PP itself will bring to a number of business segments.

We are often asked about the benefits blockchain can bring to a business. To answer this we simply need to recall the characteristics of the blockchain technology. Blockchain is a transparent and decentralized database technology. It is quite obvious what transparency means. But decentralization is a less familiar function. This system used by a large group of participants does not depend on whether any of these participants function properly and in which their effectiveness determines actions. The opportunity to fulfill these functions became possible only quite recently with the advent of high-speed Internet connection and high-performance computers. This became a prerequisite for the wide spread of blockchain technology.

The main advantage of the blockchain database over the standard database is the distributed technology used for its maintenance. The blockchain database does not have a centralized storage, so if one server fails, the other servers will maintain the integrity of the network. This allows owners of certain servers to simultaneously update data on the blockchain from a specific location and maintain consistency of information across all nodes in the network. Another advantage is that the information in the blockchain database is stored in blocks that are sequentially connected with each other, and therefore it is impossible to change, delete or falsify the information after entering it into the blockchain. If you change the data in one block, you will have to change the data in the remaining blocks of the network.

Integration of blockchain in business

First of all, the integration of the blockchain technology will make the business more transparent. When the information in the database can not be deleted or changed, it will lead to significant changes in the activities of the company. Free access to information in the blockchain database will open up its activities to the outside world and cause the company to take high responsibility for its activities. Using the blockchain will make it impossible to hide errors or intentionally conduct malicious actions on the part of employees. On the other hand, you will also see better performance, compliance with laws, innovative practices — and this will be an irrefutable means of demonstrating excellence and diligence, which form the basis of honesty and commercial reputation. The blockchain will also be useful in processes related to customer interaction, since storing data in a distributed and transparent database will be evidence of good faith towards clients, as well as protection against fraud committed by customers.

Blockchain in supply chains

Currently, blockchain technology is already being integrated into supply chains that link several participants with different commercial interests. Due to the fact that participants can check each other’s performance and track the movement of products along the supply chain in a publicly accessible database, consumers benefit on the effectiveness of the supply chain in the form of reduced cost. Such a tool is Product Protocol decentralized marketplace. It’s beneficial to all business participants. Benefits for retailers and final consumers purchasing goods through the blockchain supply chain include a guarantee of certain characteristics of a product, such as its authenticity, date and place of production, as well as other information that helps supply chain members determine quality and cost. This is a common situation when manufacturer deliberately or mistakenly indicates the wrong date of production on his goods. Transparency of the blockchain-based supply chain system is supported by independent audits conducted by both participants and specialized companies or institutions interested in the openness of the system.

Financial sphere and blockchain

Another sphere where it is beneficial to introduce such technologies is financial. For now, international transactions, for example, are carried out by the SWIFT network, which is far away from being transparent. When one party makes a transaction through SWIFT, they have to wait for the bank to confirm the transaction. The recipient must wait until one bank confirms the transaction by sending an approval message to another bank. If one bank has service problems or is closed on holidays, the transaction will be delayed. The blockchain-based financial transfer system avoids these problems. In such case, encryption of transactions on the blockchain will protect against third parties who can see the transaction and its details. Such transfers will also not involve intermediary banks, they will be faster and cheaper.

Speaking of speed, the Product Protocol blockchain issues 30,000 transactions per second.

A commercial transaction concluded on the blockchain will disclose all costs that constitute the final fee. It will not be possible to charge costs without specifying the cause of variables such as an increase in production costs or a new pricing strategy or lower administrative costs. Such information will be very useful for any commercial company.

Product Protocol for Business

Introducing blockchain to the businesses will not only make all processes more efficient and transparent, but will increase the level of performance, change the nature of organizations and the way we interact with them.

In this article, we have highlighted the reasons why some enterprises and organizations are looking for integrating blockchain-based solutions into their businesses. The Product Protocol is working hard to create faster, more reliable and user-friendly blockchain technology and integrate it with the outside world. Read more about what Product Protocol offers to your business — https://pprotocol.io/ or https://t.me/pprotocol