You must have heard about blockchain regarding cryptocurrency and digital currency. This new technology has taken the world by storm because of its multiple benefits. Combining the goodness of blockchain with NFC and RFID opens a world of endless possibilities that many businesses have taken advantage of. Let’s see how these technologies work together to bring out the best features for multiple industries.
What Is Blockchain?
Before we move onto the benefits of combining blockchain and NFC, lets first understand what blockchain is. The word “chain” refers to a network that can be accessed by many people at the same time. What this network contains is a set of blocks that store data on different servers. The blocks ideally have their own unique identity, and each block represents a transaction. It contains all the information of the transaction, such as who made the transaction, the amount of money spent, the date and the time of transaction. Whenever a new transaction is made, a block is added to the chain, making it a “blockchain” accessible for everyone.
How Is Blockchain Useful for Businesses?
Typically, blockchain technology is used in the supply chain to keep a record of all the goods the company owns. Blockchain makes it easier for businesses to track their inventory and their products on a digital ledger, which every person involved in the supply chain process can access.
Other applications of blockchain in businesses include; smart contracts, digital payments, transparent and secure payments, improved hiring process, and better marketing campaigns.
How Does NFC Work with Blockchain?
Now let’s discuss how NFC works with a blockchain to deliver the best of both technologies. Many businesses are shifting towards blockchain, and according to Forbes magazine, the top 10 public companies of the world are considering blockchain as an option to improve their business. Here is what blockchain combined with NFC offers to companies around the world:
A Technologically Advanced Supply Chain
Every single step of processe in the supply chain are monitored via blockchain. Every item is tagged with an NFC tag that contains the product’s information. This information is transferred to one of the blockchain blocks, where the data is stored safely. The NFC tag can be read to check the authenticity and other details of the product.
Blockchain offers the company to check the real-time data of each product and also keep an eye on the transactions which are taking place in real-time. This saves the company from thefts and blunders that would otherwise be very easy to make in the absence of blockchain.
Protection of Data
The data that stored into the blockchain servers through NFC or other sources is stored confidentially. Not everyone can access the information except the stakeholders and people who are authorized to do so. The blockchain does not allow unauthorized access; hence stakeholders and company owners are always at peace regarding data security.
Tracking Products and Detecting Counterfeit Items
Products can be tracked through this technology provided that they are equipped with NFC tags. Moreover, it is also possible to detect counterfeit products through NFC and blockchain technology. Forgers cannot fool companies that use NFC tags along with blockchain technology.
Blockchain together with NFC provides a layer of security to the company and its stakeholders. It is a technology of the future and many companies will move towards it in the near future.
