Blockchain-backed transparency is becoming crucial to many businesses as a fundamental of trust.
Data transparency is one of the top key factors in building a business’s reputation in the modern economy. Designed to bring transparency, blockchain is the technology that many businesses choose to use in their business. Blockchain-backed transparency is proving its influence on many businesses.
What is transparency? Why do businesses need data transparency?
Transparency refers to the ability to open up, equality and clarity in accessing and sharing vital information of people involved in the operational process and all results. However, transparency does not mean complete disclosure; it also emphasizes information accessibility, reliability, and consistency.
The impact of transparency on businesses:
- Impact on external relationships:
According to a survey by Label Insight, 94% of consumers admit they are more loyal to brands with high transparency; 73% of respondents are also willing to pay extra for products/services of these organizations.
Thus, the more transparent a business is, the more trustworthy a company will gain. This reliability contributes to the increase in customer experience, thereby making them spend more money on their products/services.
Transparency also helps businesses improve their reputation and brand. Not only consumers, but transparency also enhances the trust of business partners. Although enterprises have many friend relationships, the cooperation between them still needs to be based on legal information and papers, after all. High transparency means high accountability, helping to maintain the integrity of certificates, ensuring conditions set out in contracts.
- The Impact on internal enterprises:
- To archive use documents more accessible.
- Increase operational smoothness.
- Build trust, the linkage between departments and individuals in the business.
- Identify the problem accurately and offer a faster solution.
- When you no longer spend time and effort solving issues of trust and unnecessary incidents, companies will have the opportunity to focus more resources on innovation.
Thus, transparency brings businesses four key benefits: reinforcing trust, building relationships, increasing productivity, and spurring innovation.
However, some businesses may wonder how their sensitive data will be protected. Blockchain technology is a solution that helps businesses both achieve information transparency while ensuring the necessary privacy.
What is blockchain technology? How transparent is blockchain?
Blockchain is a data storing and sharing technology based on a digital environment. Information stored in blocks is linked together in a chain form and encrypted with a different hash algorithm for each block and time-stamp.
This data chaining mechanism means that any minimal change in information will result in a difference in the hash number in other blocks.
Besides, the decentralized nature of blockchain requires data to be stored in multiple places, requiring the participation of verification and construction of all nodes. Therefore, any changes that take place will be detected.
These two mechanisms help node members seldom have to worry about data inaccuracies.
Also, as mentioned above, many businesses are still concerned about the publicity of sensitive data. A private blockchain model, granting access permission will help ensure both transparency and security.
Based on the values of blockchain-backed transparency, businesses are applying blockchain technology in storing data to achieve the aspired business performance.
akaChain’s blockchain solutions to offer transparency
To businesses with a large number of transactions, the amount of information required to verify is large. The costs and time spent in the process of waiting and verifying are enormous. Thanks to blockchain-backed transparency, akaChain has developed several solutions that are useful for businesses.
The e-KYC solution in the banking sector: combining identity technology and existing transparent data sources, banks, and customers will not have to waste time and travel expenses for each verification.
Accordingly, the Smart insurance contract solution used in insurance claims helps insurance buyers do not need to go through every type of complicated procedure. All contract term validation will take place automatically, based on the reliable information stored on the blockchain. Insurance buyers almost only need to wait for notification of compensation from insurance providers.
Blockchain-backed transparency transparency is also a core factor in the implementation of traceability solutions. Take the food traceability solution as an example. Consumers can fully understand the manufacturing process, nutritional content, and available medicines used in any food with this solution. More importantly, this information is entirely reliable.
Whether your business has achieved the required level of transparency or not, please let us know your opinion about this transparent issue.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since Establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/.
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