How Can Blockchain Help Organizations To Overcome Frauds
Blockchain was originally developed to prevent fraud in digital currency exchanges. But fast forward to 2018, and many industries are finding that blockchain serves endless protective and even disruptive use cases for their businesses—ones that could change processes and wipe out both fraud and “the middle man” altogether. Let’s take a look at how businesses can combat fraud with blockchain.
- Elimination of an Escrow with the help of Smart Contracts – With blockchain, both old school escrow and underwriting may be a thing of the past. What’s more, online buying and selling of just about anything could become an even bigger industry. Smart contracts allow both buyer and seller to create “if / then” contracts in which one step of the process won’t be fulfilled until the one before it has been verified complete. This concept can be used in literally ANY exchange, deal, or agreement. It doesn’t matter how big or small—both parties can combat fraud with blockchain, and it removes the need for a physical mediator like an escrow company to ensure it.
- An exquisite Supply Chain Network – In today’s global economy, we’re seeing companies all over the world partner for manufacturing, agriculture, pharma development, and everything in between. As the distance between these companies grows, so does the ability to ensure that the products and processes agreed upon are actually followed when the final product is made. Companies can combat fraud with blockchain by verifying the legitimacy of every part of the supply chain process, helping both the buyer and manufacturer.
- Adios Identity Fraud – It’s easy to combat fraud with blockchain because the ledger is constantly reconciled—and can only be updated when verified by both parties or users. And second, because blockchain allows for permission networks, it could finally level up the playing ground in today’s digital environment and empower users themselves to determine what personal data and information they share, where, and with whom.
Blockchain can serve as an objective, trustworthy, third-party mediator in pretty much any interaction, deal, or partnership you can imagine. It helps ensure trust and transparency, even amongst those who don’t trust each other. As the tides turn in a couple of years, Blockchain will be the next big revolution that the world will witness.
