How blockchain can help businesses in Sri Lanka

Blockchain technology, while often associated with cryptocurrencies, has far-reaching implications for businesses of all sizes. Understanding what blockchain technology is and how it works can unlock new opportunities for efficiency, security, and growth. 

For Sri Lanka, where small businesses play a vital role in the economy, embracing blockchain can be a game-changer. With the global blockchain supply market estimated at USD 2.26 billion in 2023¹, it's clear that this technology is gaining traction, and its importance in helping businesses streamline operations and enhance trust cannot be overstated.

This article explores how blockchain can benefit small businesses in Sri Lanka, highlighting its potential to transform various aspects of their operations — including the importance of blockchain technology in business and how it can help businesses of all sizes thrive in today's dynamic market.

1. Increase transparency

One of the key benefits of blockchain is its ability to create a transparent and immutable record of all transactions. 

How blockchain works is that it distributes a shared ledger across a network of computers, ensuring that all participants have access to the same information. This eliminates the need for intermediaries and creates a single source of truth for all transactions, fostering trust and accountability.

• Enhanced trust: Transparency builds trust among stakeholders, including customers, suppliers, and partners. When everyone has access to the same information, it reduces the potential for disputes and fosters a more collaborative environment.
• Improved efficiency: By eliminating intermediaries and streamlining processes, blockchain can help businesses save time and resources, leading to increased efficiency and productivity.
• Reduced costs: The elimination of intermediaries can also lead to cost savings, as businesses no longer need to pay for third-party verification or reconciliation services.

Consumers in the digital age are increasingly concerned about data privacy and security². They value transparency and want to be fully informed about how their information is being used and protected. Blockchain's inherent transparency aligns with these expectations, providing businesses with a powerful tool to build trust and demonstrate their commitment to ethical data handling.

2. Decentralized System

Blockchain's decentralized nature offers an edge in logistics and supply chain management. By distributing data across a network rather than relying on a central authority, blockchain enhances security and resilience.

In logistics, this means that information about a shipment's journey is shared across the entire ecosystem, from the point of origin to the final destination. This shared visibility builds trust among participants, reduces the risk of fraud or tampering, and facilitates smoother and more efficient supply chain management. 

By leveraging blockchain technology, businesses can optimize their logistics operations, reduce costs, and enhance transparency across the supply chain.

3. Improve blockchain security

Blockchain's inherent security features make it an attractive solution for businesses handling sensitive data. By design, blockchain transactions are encrypted and tamper-proof, ensuring data integrity and reducing the risk of fraud or cyberattacks.

• Data integrity: Blockchain's immutability ensures that data cannot be altered or deleted, maintaining a reliable and trustworthy record of transactions.
• Reduced risk of fraud: The decentralized nature of blockchain makes it extremely difficult for malicious actors to compromise the system or manipulate data.
• Enhanced security: Blockchain's use of cryptography, including end-to-end encryption, safeguards sensitive information and protects against cyberattacks.

Data anonymization is another important aspect of blockchain security. By removing personally identifiable information from transactions, blockchain protects the privacy of both businesses and customers, fostering trust and compliance with data protection regulations.

4. Streamline operations and reduce costs

Blockchain can significantly streamline business operations and reduce costs by eliminating intermediaries and automating processes. For instance, in the financial sector, blockchain enables peer-to-peer transactions, removing the need for banks or payment processors and their associated fees.

In supply chain logistics, blockchain technology can automate tasks such as inventory management, tracking shipments, and verifying product authenticity. This reduces manual effort, minimizes errors, and improves overall efficiency.

5. Automate tasks and boost efficiency

Blockchain technology is important for businesses because it can automate various tasks, freeing up valuable time and resources. By automating processes such as record-keeping, payments, and contract management, blockchain reduces the need for manual intervention and minimizes the risk of human error.

Benefits of automation for small businesses:

• Reduced errors: Automation minimizes the risk of human error, leading to more accurate and reliable data.
• Improved productivity: Automation frees up employees to focus on more strategic tasks, increasing overall productivity.
• Faster processing times: Automated processes can significantly reduce processing times for tasks such as payments, inventory management, and order fulfillment.
• Enhanced scalability: Blockchain-based automation can easily scale to accommodate business growth, without requiring significant additional resources.

6. Real-time visibility and traceability in your supply chain

Blockchain technology revolutionizes supply chain management by providing real-time tracking of goods and materials as they move through the supply chain. This granular visibility empowers businesses to monitor their inventory levels, track shipments, and verify product authenticity at every stage of the journey.

This transparency is particularly valuable for managing complex supply chains and ensuring accountability. In the event of a delay, damage, or discrepancy, blockchain provides an immutable record of the product's journey, facilitating quick problem resolution and reducing last-mile costs. 

As global courier services increasingly adopt blockchain technology, businesses can expect even greater efficiency and transparency in their shipping logistics. The integration of 5G technology with blockchain can further enhance real-time tracking capabilities, providing even more granular and up-to-the-minute information on shipment location and status.

7. Enhances the customer experience

Blockchain technology can significantly enhance the customer experience by improving transparency, security, and efficiency in various business processes.

• Product authenticity: Blockchain can be used to verify the authenticity of products, assuring customers that they are receiving genuine goods.
• Secure transactions: Blockchain-based payment systems offer secure and transparent transactions, increasing customer trust and confidence.
• Improved communication: Blockchain can facilitate secure and transparent communication between businesses and customers, providing real-time updates on order status and delivery information.
• Loyalty programs: Blockchain can be used to create more efficient and secure loyalty programs, rewarding customers for their repeat business and fostering stronger relationships.

By leveraging blockchain technology to streamline operations and enhance security, businesses can reduce operating costs, process transactions faster, and improve service delivery. These improvements translate to increased customer satisfaction and help businesses improve customer loyalty.

Partner with a service that integrates blockchain in their shipping logistics

Blockchain technology offers numerous benefits for small businesses, from increased transparency and security to streamlined operations and enhanced customer experiences. As a business owner, exploring and implementing blockchain solutions can position your company for future growth and success in the digital age.

If you're looking for a global courier service that knows how blockchain technology works and how it can help your business, DHL Express Sri Lanka is here to support your needs. With our expertise in shipping and logistics management, we can help you leverage the power of blockchain to optimize your supply chain and enhance your business operations.

Open a business account today for a more secure shipping experience.