Using the traditional banking system, it can take several days (or longer) to process transactions, but the movement of cryptocurrencies, in contrast, is instant. Blockchain has no days off or public holidays. There is no failure of the system or political prejudice against the currency of any country.
Secondly, blockchain is an eternal way of storing information. Any commercial contract, ownership, or patent for a product will be assigned to you in perpetuity, and it is essentially impossible to change this information.
If you need to verify ownership of a product, you can publicly share the information in blocks available to everyone.
Otherwise, only you and those to whom you give permission will own the information. But the information itself will be stored on the millions of computers involved in the blockchain, and therefore destroying or losing it is impossible.
Automation of business processes
Blockchain technology gives us the opportunity to conclude "smart contracts".
A smart contract is concluded between two or more people interested in a transaction and automatically records the performance of all contract items. Contrary to some misleading opinions, a smart contract is not limited to ERC tokens.
The concept of tokens is a small part of the overall functionality and capabilities provided by smart contracts. More details can be found in our previous article on how to create an ERC20 token on Ethereum.
The smart contract is online and essentially represents the program code written in the blockchain.
Suppose you are engaged in the production of food. You need raw materials for production. You conclude a "smart contract" with the supplier of raw materials and proceed to fulfill the contract items. The supplier, in turn, will be sure that he will receive payment for the work he completed.
Each action leads to a new action, when fulfilling the terms of the contract.
1) You discuss the conditions in detail with the supplier, conclude a smart contract in the blockchain, and automatically reserve funds for payment. The raw material supplier is confident that you have enough money to pay.
2) The supplier collects your order. All the information on the raw materials presented in the contract must be genuine. This is one of the conditions. The "smart contract" independently checks all provided information for authenticity and in case of non-compliance the contract will be terminated.
3) The supplier sends you the order. All step-by-step execution of the contract items are automatically entered in the registry of the blockchain system, and you in turn can track the stage at which the contract is being executed.
4) After you receive goods of proper quality, you confirm the transaction and pay for the order to the supplier. In case any term of the contract was violated or you received raw materials of inadequate quality, the transaction will be terminated and the money will not be sent. You return the goods to the supplier, and all the information on the smart contract is recorded within the blockchain and stored there for good.
This was just one example of a "smart contract".
Still, you might ask "And what's wrong with past solutions? It's been working fine so far." This might be true, but by using a smart contract and blockchain technology, the entire process becomes automated and secure.
A huge number of documents, bureaucratic processes, and payments for contract fulfillment go straight to the performer, bypassing banks and their oft-delayed transactions. Blockchain registers all stages of the contract, and you, in turn, control the process.