Does the Service industry need Blockchain Technology.
Service industry according to the Business Dictionary is an industry made up of companies that primarily earn revenue through providing intangible products and services. Service industry companies are involved in retail, transport, distribution, food services, as well as other service-dominated businesses. Also called Service industry, tertiary sector of industry. There are some hindrances for the growth of service industries. Three major hindrances are:
Money: Not every person or service company has enough funds to launch itself properly. And one can definitely not solely depend on getting bank loans.
Personnel: For success of every Service industry you need to have the right personnel or those who can be groomed to become proper employees. Without the right employees your company might never take off.
Information: Information is the basic requirement for any industry nowadays . This information can be obtained through internet or datawarehouses. However there can be some miscommunication or loss of data that can occur which can seriously affect your company.
Blockchain in Service industry:
Blockchain can solve the above mentioned problems in Service industry.
Money: One start their own ICO and raise money for their own business. If your idea has potential then you can raise funds easily . Smart contracts are also an added advantage in this purpose.
Personnel: The distributed ledger facilitates finding a good employee. 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.
Blockchain is of help in various Service industry as below:
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. This is similar to makemytrip.com .
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 million 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. Uber,Ola and Zoom cars are also on the same track.
Blockchain 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 fake.
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. And there is no third party involved and it reduces expenses significantly.