How Blockchain can be Adopted in Small Business

Small business administration is harsh. It takes a lot of time to turn small business ideas into a reality.

What is blockchain?

Blockchain, at its heart, is simply a digital ledger that stores transactions and records countless information for your business. The tech behind Bitcoin has evolved to also run smart contracts, which are self-executing agreements that can be shared and cashed with others for instant digital payments. Blockchain will be an integral part of the future business landscape, as an improvement over many existing systems.

How does blockchain technology improve small businesses?

The rise of the cryptocurrency market made people believe in the “magical” effects of Bitcoin, Ethereum, Litecoin, and the other legacy cryptocurrencies. But, in fact, small businesses can significantly benefit from blockchain not because they can buy Litecoin and solve all of their problems. It’s rather because it’s a brand new world with unlimited opportunities. Let’s see some of the benefits of blockchain.

It cuts the middleman

The future of business is looking bright for those who are willing to ditch the middlemen. Blockchain technology has the potential to revolutionize how we do business, and it could save both clients and businesses a lot of money in the long run. Buying cryptocurrency will make everyone’s lives better, as it will give businesses breathing room. They can save up to 4% of the sale value, thanks to crypto.

Blockchain offers an increased security

Data is critical for companies of all sizes. The right data can allow your business to grow, learn, and adapt — with it you can create value, share results, conduct product development, and even run marketing campaigns. Blockchain systems are ideal for sharing information, and they’re increasingly being used to protect data against cybercriminals.

Transparency is better achieved with blockchain

Blockchain technology is harnessing the power of open ledgers, databases, smart contracts, and protocols to create new means of information security, authentication and verification. Blockchain can make sure every transaction is recorded securely, eliminating the need for third parties like credit agencies or lawyers. 

Traceability

Blockchain is a great solution for all industry verticals. Many industries struggle with knowing the origin of their products and where they have traveled to along the supply chain. The benefits of using blockchain are mentioned throughout — from identifying fraudulent activity in supply chains, to ensuring that consumers receive genuine goods.

Save time

Not only is it cheaper and easier to store documents on the blockchain, but it also eliminates the need for an intermediary and bureaucratic reporting requirements. Instead of handling every transaction manually, businesses can settle at the end of each month with a few clicks in one place. Documents can be uploaded directly to the blockchain without ever seeking official approval from a third party. The data-sharing features of blockchains make it possible to create private and public distributed ledgers that can trace transactions through a verifiable chain link.

Automation

With blockchain, we have the chance to improve and streamline all aspects of commerce. Instead of spending hours verifying valid transactions and waiting for them to process, we can automate the entire process. While the technology still isn’t quite at the stage where it’s being used extensively, smart contracts allow for immediate settlement of all agreed-upon conditions, with no human intervention necessary once a claim is filed.

How can small businesses make money from it?

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Cloud technologies

Working in the cloud has become a must-have for modern companies, regardless of their size. One of the useful tools is using the best adblocker which you have, as it will remove all the unnecessary information. Cloud technology is constantly evolving, and with blockchain, you can ensure easy collaboration and security. With blockchain, you can be sure that your data is secure and that you will be able to work together effortlessly. Thanks to blockchain, cloud technology is cheaper than ever.

Another payment method

Cryptocurrencies are quickly building the foundation for a payment method revolution, rapidly becoming accepted not only in the cryptocurrency community but by everyone. Small businesses should build a strategic plan for accepting cryptocurrencies as a legitimate and useful form of payment — starting by setting up simple merchant tools on an e-commerce site. There are many popular wallets like Coinbase, Crypto.com, Exodus, and Metamask, which are recognized by customers and businesses alike. 

Utilize smart contracts

Businesses looking to utilize blockchain for smart contracts can start with small, finite tasks. For example, a retail store might use smart contract technology to reward customers for their loyalty by depositing some cryptocurrency into the customer’s “wallet.” Flexibility and scalability is strong in blockchain — businesses of every size can reap benefits from these agreements without breaking their technology budget. Not only that, smart contracts are the most efficient way to tackle chargebacks. Some customers are abusing chargebacks just to receive freebies. Well, not anymore!

Raising capital

Blockchain technology has made waves throughout the financial and business markets, having applications in everything from currency trading to insurance settlements. As a result, free-market enterprises are now considering blockchain technology to boost their capital expenditure capabilities through Initial Coin Offerings (ICOs). Blockchain enables entrepreneurs to raise capital without relying on traditional banks or private equity firms — simply create a digital asset, offer it for sale via ICO, and wait for investors to purchase it.

Which industries can be significantly affected by that change?

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Thanks to blockchain, a number of industries can finally solve their security and transparency issues. The key is looking at which problems blockchain can solve, why they matter so much in the first place, and how some forward-thinking sectors are already solving them. However, as it happens with each piece of technology, not all sectors can be greatly affected, as not every industry is tech-reliant to such an extent.

Food chains

Trust is a firm foundation. Trust — as more than just an instinct — is crucial to business growth and can be essential for enterprise adoption of blockchain technology. Blockchain technology ensures industries such as the food industry have better standards and have more processes in place in regards to quality assurance. This is great because it prevents waste and extends the shelf life of products by eliminating the need for spoilage, which causes widespread theft and wastage. The use of blockchain in logistics could also benefit enterprises by providing instant visibility on cargo movement with data that has been verified since it was made available.

Financial industry

In the rapidly changing digital world, financial institutions considering blockchain implementations should watch out for new, revolutionary ideas that offer a much greater user experience and technological benefits. Small businesses shouldn’t take old technologies as standard because they’ve been proven time and time again to be inefficient and insufficient for today’s online consumers.

Healthcare

Blockchain, the technology used in cryptocurrencies such as Bitcoin, has been touted to help improve security for patient data in healthcare. By creating a decentralized database that can be shared across a network of trusted participants and utilizing encryption techniques, blockchain is meant to eliminate issues faced by other technologies such as HIPAA security breaches. Patients are provided with more control over their personal data as only they possess the details necessary to access it — which theoretically prevents employers from requesting and storing copies of medical records without consent.

Government

Governments are becoming less effective as time goes on — and blockchain technology will be the catalyst to change this dismally slow process. Blockchain is a distributed ledger that is immutable, time-stamped, requires no intermediaries, and can be used to provide a secure, reliable audit trail for e-commerce transactions. While many may ask how governments are related to small businesses, it’s simple — blockchain reduces paperwork and administrative burden, which is always a good sign for small and medium enterprises. 

Insurance companies

By using blockchain technology and smart contracts to automate manual and paper-intensive processes, insurance companies can save time, money and increase efficiency. Utilizing blockchain technology’s advantages, information is verifiable immediately, providing a secure way for customers to go about their daily lives without worry.

Ecommerce stores

By storing an encrypted hash of each transaction, a blockchain creates an unchangeable and reliable record for all data that is generated by users. Blocks keep track of time-dated transactions — allowing businesses to develop reliable progress reports for their customers and producers the ability to track all records back to the first registered product. On top of that, ecommerce businesses will have a good idea of where their goods are at any moment. Last but not least — utilizing blockchain will prevent sales of non-authentic products, and online retailers will have enough time to avoid issues before paying hefty amounts.

SaaS businesses

There is a myth that all SaaS providers are some sort of multimillionaires which is totally untrue. Many small companies are going SaaS, as they can predict revenues and more accurately plan their business growth. By utilizing blockchain, SaaS companies can protect their customers’ data, automate transactions, and achieve much more at a lower cost.

Conclusion

Blockchain technology can change the way we see modern business. More and more people are starting to believe that the change they hoped to see has finally arrived.