How the B2B sector can realise the potential of blockchain technology
Blockchain and cryptocurrency have always come paired together when both are discussed in relation to the technology’s development and innovation. And rightly so, the blockchain provides the backbone for many cryptocurrencies such as Ethereum and Bitcoin, and is established as the primary use case for the technology.
However, there is often a misconception that the technology only serves and powers the crypto purpose, when in fact, the blockchain is very distinct in its own right and has the potential to serve a very separate and powerful role. Although crypto is back on a positive trajectory after a challenging couple of years and is being viewed once again asa serious asset class by investors looking to diversify their portfolios, it’s the technology as much the currency where fintech giants are seeing the opportunity.
Players such as Mastercard, Revolut, PayPal and Stripe, are all exploring the potential of digital asset and blockchain applications that they know will be essential to ensure they attract and maintain their next generation of B2B customers. Equally, The Fortune 500 is moving increasingly onchain, conducting more operations through blockchain, while Fortune 100 companies have also increased onchain projects by 39% year-on-year, hitting a record high in Q1 2024.
Businesses can use blockchain to transform financial operations
Out of the digital financial innovations of the past thirty years, blockchain technology arguably has the potential to make the biggest impact on the B2B landscape. Businesses, which can develop and maximise more blockchain use cases alongside crypto, have the potential to transform the way they operate financially, driving better efficiencies and cost savings in equal measure.
If you are a company that has multiple entities around the world, moving money using a SWIFT network can be quite inefficient. But, if you are using a borderless digital asset, money can be moved a lot more quickly, more transparently, but also most importantly, at a fraction of the cost. Blockchain’s availability, immutability and transparency as an underlying technology can be transformative for enabling utility use cases, such as streamlining payment cycles, and simplifying clearing, settlement and reconciliation. This transaction speed helps accelerate business operations and improves cash flow management.
Tokenisation can help businesses maximise blockchain’s potential
Tokenisation – the process of converting an asset or its ownership to a digital form using blockchain – is one of the most impactful ways businesses can use the technology. We are only at the beginning of blockchain’s emergence, but we’ve already seen successful tokenisation pilots and production-level programs in a variety of different areas of traditional finance. Goldmans Sachs is the latest giant to announce further investment into the space.
Tokenising assets adds an additional layer of protection and identifiable ownership, which can be a massive boon to a business that wants to protect its IP and increase its security and transparency. Numerous scams and data breaches have exposed millions of stolen payment details, resulting in widespread losses for businesses and traditional finance organisations alike. Tokenisation ensures card details are never shared when making a payment, and adds an additional security safety blanket with a unique value that helps verify each and every transaction.
Businesses must invest in the right partners
When a business is considering their investment into blockchain technology, it’s important they on-board and work with the right partners to set them up for success. It’s no secret that digital assets continue to see volatility as regulations are evolved and put in place, so investing in secure infrastructure with a provider that has a proven track record like Fireblocks, can minimise operational risk, protect assets and build trust in the ecosystem. Equally, when considering how to protect against financial crime or maximising intelligence, using tools from a partner like Chainalysis from a monitoring perspective, or using trading services from partners such as OKX and XBTO that prioritise security, can be the difference for a business as they experiment in a progressive new financial world.
Once a business has invested into blockchain, there is also an opportunity for that company to externally talk about its investment into the space, showcasing its innovation and leadership within the industry they operate. However, it’s important this storytelling doesn’t get misinterpreted or sucked into any negative news cycles. The reputation of crypto and blockchain is repairing and not everyone will see the benefit of a business’ venture into the space, so positioning is key.
An effective PR messaging strategy and plan can be integral for this external storytelling, so it’s essential a business works with the right PR partner that understands the industry nuances and media landscape, and has established relationships with relevant journalists and publications to help tell the story to key industry influencers beyond the core crypto and blockchain sphere. As a leading integrated agency in the UK working in the crypto industry, Archetype is a specialist that can offer this level of expertise. If you want to learn more about how we can help tell your blockchain story, please don’t hesitate to get in touch.
