Why the Service Industry Needs Blockchain, Explained
How is the service industry doing?
The service is developing not as fast as it could. Like any other business, the service industry is trying to keep up to date. But there are still some issues slowing down the progress. Money. It’s not that simple to get the money to start a new business or to expand an already existing one. It’s not always possible to get a loan since banks may think you are too young or too old, your credit story is not good enough, or your idea will not be in demand.
Personnel. In current realities, the service requires highly-qualified staff. It’s not enough to find competent people and train them. If you have a network of businesses, you have to make an effort to work them as a whole one. Information. Nowadays, information is one of the most important resources. The Internet has made information transfer faster and easier. However, there are a lot of people involved in the transfer chain. Delays in communication between the links take a large amount of time.
Ongoing Blockchain technology is able to solve the above-mentioned issues. Money. You can launch your own ICO to get the money to start a new business or expand the existing one. If the idea is great and presented properly, it can raise a lot of funds. Besides, hedge and venture funds show their interest in Blockchain. Smart contracts will make the transactions fast and reliable.
Personnel. The distributed ledger facilitates finding a good employer. Blockchain makes it easier to check the education, skills, work experience, and much more. Moreover, technology provides the communication between departments and managers which improves personnel management. Information. The decentralized system allows sharing information promptly. All information is rapidly distributed between the nodes. The information stored in Blockchain cannot be changed and at the same time, you have access to see how the business processes are going.
Hotels will get more information about tourists and facilitated check-ins. Blockchain stores all the information. Thus, if a tourist checked in a hotel, it would simplify next bookings and the registration process. If a hotel is a part of international hotel chains, keeping track of all the guests is not an easy task. The ledger monitors the number of bookings and updates the information about available rooms in real time. Any violation or even attempt will become publicly available. And an so you can check a tourist’s or a hotel’s, and its staff, reputation before making any reservations. The payments have low fees and are processed quickly from any place on the planet.
Restaurants can track all the data about supplies. Each day catering business has to communicate with a lot of food, logistic companies, etc. The supply chain is rather long. It requires a lot of paperwork, transactions, confirmations, and other procedures that require a huge amount of time. The decentralized system allows to get necessary information much faster and accelerate the processes. Each food product has its own shelf time. Expired products are a very bad spot on the reputation of the food brand. Blockchain fixes all the data about the food, storage conditions, delivery time and indicates rotten products.
There is a lack of communication between the participants of the business. The car industry is a dynamically developing business. In 2016, more than 78 mln cars were sold in the world. There are a lot of institutions involved: manufacturers, banks, drivers, repair stations, etc. Each of them possesses information that is useful for other participants. For example, manufacturers need to know what kind of breakages a particular model has and how often it happens to produce the necessary amount of spare parts.
There are different decentralized platforms, like Uservice that aim at bringing together all the parties involved and create a unified database about cars. For instance, a car owner can register their car and get paid for the information that they will provide to the platform. So every registered car record will be updated and users of the platform can track what kind of issues this model has or doesn’t have.
It can increase trust between clients and insurance companies, prevent frauds. Insurance companies note that there are trust issues among their clients. The system of insurance calculation, high prices and low efficiency discourage consumers. Blockchain technology is transparent, it can restore the trust to how the system works. Smart contracts allow to make insurance contracts clearer and more reliable. The code will be automatically executed if an incident happens. Authenticity verification is one of the biggest problems in the field. Using decentralized register, manufacturers, customers, insurance companies, and others can see all the history of the product, even check if it was stolen or is a counterfeit.
Decentralization will bring transparency, credibility, fast transactions and low fees. Trust comes to the forefront again. Trading is made from a different part of the world. You cannot see a consumer or a seller. There is no guarantee that you won’t get involved with a fraudster. Blockchain makes all the processes see-through to everybody. Smart contracts make sure you receive money or goods/services. Plus, there is no third party involved and it reduces expenses significantly.
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