Leaders of traditional companies across industries may be hearing a lot about the unique versatility and security of blockchain technology and wondering what role it could play in their own businesses. With many pundits proclaiming Web3 and decentraIization to be the future of business and financial transactions, there is likely a sense of urgency behind at least better understanding the possible benefits.
Rather than striking out on its own, a traditional company might benefit from partnering with a well-matched blockchain project, whose leaders can offer expertise not only in the underlying technology, but also in the best ways to leverage it. Below, 10 members of Cointelegraph Innovation Circle discuss ways traditional companies — and their blockchain partners — could benefit from teaming up.
Enhanced public trust
Traditional companies that partner with blockchain projects for better transparency for their shareholders and consumers greatly benefit from such partnerships. They show the world that they have nothing to hide and create a sense of trust with the public. For the blockchain project, such a partnership leads to the building of credibility and brand recognition. It’s a win-win for both. – Ayelet Noff, SlicedBrand
Improved supply chain visibility
By partnering with a blockchain project, a traditional company can offer improved supply chain visibility, security and efficiency, giving it a major competitive edge. Doing so not only distinguishes a traditional company from its competitors, but also positions it as an innovative organization that incorporates cutting-edge technology to provide exceptional value to its clients. – Myrtle Anne Ramos, Block Tides
New value for audiences and operations
A successful blockchain partnership has to start with a company’s existing strategy. We see a lot of hype-driven Web3 initiatives that fall flat. What works is finding the place where blockchain is the best way to deliver value for a business’s audience and operations. Nike is doing great at this, from creative NFT initiatives with RTFKT to supply chain tracing with AntChain. – German Ramirez, THE RELEVANCE HOUSE AG
More efficient workflows
Use blockchain tech to level up your workflow automation. By leveraging smart contracts, decentralized technology can help traditional companies make routine processes more efficient, transparent and secure. Overall, Web3 automation can reduce costs while also making your business more trustworthy for both B2B and B2C clients. – Wolfgang Rückerl, ENT Technologies AG
A traditional company can partner with a blockchain project to utilize smart contracts. Smart contracts automate and streamline agreement processes, thus reducing costs and eliminating intermediaries. This collaboration enhances operational efficiency, accelerates transactions and improves trust and transparency between parties. – Anthony Georgiades, Pastel Network
Proof of ethical corporate practices
Blockchains are a new way to log the way data travels, with the innovation of proving data lineage in a way that editable databases cannot. Enterprises benefit by automating the retrieval of proofs for compliance. In addition, in an atmosphere of distrust, generating irrefutable proof of ethical corporate practices can build brand loyalty. Blockchain companies flourish when they deliver. – Stephanie So, Geeq
Access to new communities
Finding ways to merge and leverage communities is a mutually beneficial way to support both parties, seen most famously with the Adidas and Yuga Labs Bored Ape Yacht Club partnership. It’s worth remembering that traditional companies have less experience in volatile Web3 markets, so favoring long-term over “ad hoc” partnerships is key to supporting project longevity. – Sheraz Ahmed, STORM Partners
The ability to accept crypto
Accepting crypto as a form of payment for certain low-value items would be a start. These items could include cinema tickets, fast food meals, arcade games, bus rides and the like. For example, Elon Musk has said publicly that he will eat a Happy Meal on TV if McDonald’s accepts Doge as a form of payment. – Zain Jaffer, Zain Ventures
Digitized assets for new revenue streams
Tokenization could be a valuable way for traditional companies to partner with blockchain projects. Tokenization digitizes assets, products and services, creating new revenue streams and liquidity. Fractional ownership and global user access expand market opportunities. Traditional companies can innovate and stay competitive in the fast-changing business landscape by adopting blockchain-based tokenization. – Arvin Khamseh, SOLDOUT NFTs
Enhanced transparency and efficiency
A traditional company could partner with a blockchain project to enhance the transparency and efficiency of its operations. For example, a supply chain firm could leverage blockchain for traceability and real-time tracking, benefiting both parties: The firm gains improved operations, and the blockchain project gets a real-world application. – Tomer Warschauer Nuni, Kryptomon
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.