Blockchain is often associated with cryptocurrencies, and its application in other industries remains largely untapped. However, within a short period, technology has emerged as a key financial facility for small businesses. Bitcoin, and the blockchain technology that supports it may not have disrupted the business world as much as originally expected. However, more recently, blockchain technology has gained popularity as a buzzword in the payment industry. Here, we examine some useful ways in which your organization could leverage some of its important functionalities.
Bitcoin and blockchain: what exactly are they?
Most small businesses are yet to recognize the role of blockchain and bitcoin for businesses seeking a competitive advantage. Here, bitcoin implies a decentralized ledger system with an immutable public record referred to as the blockchain. Groups are rewarded for solving complicated cryptographic problems using digital currency referred to as bitcoin. The transactions are made without the need for intermediaries, and there is no attachment to a specific country. Blockchain is the technology behind Bitcoins and tons of other cryptocurrencies. The application has uses beyond cryptocurrency. You should think of it as the ever-growing record that is protected cryptographically.
Many blockchains have been developed beyond cryptocurrencies. Consider blockchains as operating systems and tokens as programs on it. Some examples of live blockchains that have been created beyond bitcoin include:
Leverage blockchain for your business
The benefit of using bitcoin as a payment platform for your small business is that it offers relatively fast international payments without the need for intermediaries. Other blockchains allow businesses to transfer funds securely and directly to anyone around the world, and at very low rates. Since there are no mediators involved, businesses can easily transfer funds between them, eliminating transaction costs. This is one of the most renowned uses of blockchain. Here are other notable ones:
Smart contracts sing blockchain
A smart contract is a computer protocol that is intended to digitally facilitate, authenticate, and enforce the negotiation or performance of a contract. Smart contracts permit the performance of credible transactions without the need for third parties. One of the best things about blockchain is that it is decentralized and exists between all permitted parties. The elimination of intermediaries saves time and conflict. Of course, they have their problems, but blockchains are rated, faster, more secure, and cheaper than traditional systems. This is why governments and banks are turning to them. Contracts can be converted to computer code, stored and replicated on the system, and are supervised by the network of computers that manage the blockchain. In other words, these digital contracts help in exchanging property, money, shares, or anything of value in a conflict-free and transparent manner, while avoiding the middlemen and legal costs.
Capital raising on a global scale
If you are considering raising capital for your small business, take things to the global level using blockchain. Of course, as with any type of capital raised, you will need to consult legal and financial experts. Nonetheless, digital currencies offer opportunities for investors to fund businesses securely from different parts of the world.
Authentication of supply chains
Blockchain is not just for cryptocurrency and other financial services, it is also finding its way into the management of supply chains. It works with SCM to offer an immutable ledger for transferring and keeping records, thus making it easier to manage the manufacture, sourcing, storage, and distribution of raw ingredients, materials, and products.
When combined with other technologies like the Internet of things and Artificial Intelligence, blockchain technology enhances transparency and access, as well as rapid troubleshooting of waste and inefficiencies. It also permits the authentication of goods. Here are ways in which blockchain benefits supply chain management:
- Capturing and verifying the number of products
- Tracking the location of goods at any time
- Understanding the source of goods
- Making administration much easier
Notarization and legal agreements
Notarization is seen as one of the use cases that distributed ledger technologies can facilitate or even disrupt. While we are unlikely to see a complete replacement of these legal services by technology, there are some major implications. Notarization helps with fraud deterrence and assures parties in transactions that the documents in the deal are authentic. In real-life, notarization is related to law, and the notary public plays a critical role in the entire well-defined process. The emergence and growth of blockchain are highly expected to facilitate if not to disrupt the notarization. Blockchain assures the integrity of data once introduced into the chain. It offers various capabilities, including tampering resistance, traceability, and non-repudiation.
Here, we have looked at some amazing functionalities of blockchain for small businesses, for example – essay writing services. As with every other technology, embrace innovation with some caution.