With all the buzzwords floating around, it can be difficult to separate reality from the hype. In case you’re wondering what all the fuss is about, we are here talking about Blockchain for Small Business.
In the modern era, there are plenty of tools that can benefit small businesses, whether you’re just starting out or you’ve been around for decades. However, there are few technologies as promising as a blockchain—a digital ledger capable of being transparent and decentralized at the same time.
Developed as the underlying technology behind Bitcoin, blockchain has taken the tech world by storm with its potential to streamline our data-driven lives and revolutionize business across the globe. However, blockchain technology can also be used to simplify some of the most important aspects of small business management, making it easier to manage finances, track inventory, and even verify transactions.
The blockchain has long been heralded as the future of small business transactions, but many remain hesitant to try it out. However, it’s time to get over your fears and start exploring this new way of doing business with what you have on hand—as well as take advantage of some of the many benefits that blockchain technology offers entrepreneurs and small businesses alike! Let’s take a look at how blockchain for small business can be beneficial in today’s global marketplace.
Are you ready for the change?
Many industries are still getting their heads around blockchain, but small businesses can benefit from its reliability. Blockchain provides a means of accounting and recording transactions across multiple systems without introducing a third-party trust, which is ideal for keeping track of small-business finances. And there’s no risk of losing money—no one has access to it in any form—and it makes payments as simple as pressing a button, so there’s no waiting for cash to hit your account after receiving an invoice.
The most exciting potential of blockchain technology for small business is that it allows companies to create a community currency, providing ways for employees and customers to spend virtual currency at various partner locations and receive perks like discounts on products or exclusive events.
Know What is Blockchain Technology?
Before you can grasp how blockchain might benefit your small business, it’s important to understand how blockchain works. According to Accenture, blockchain is a digitized and decentralized public ledger of transactions that is both more transparent and secure than current financial transaction methods. The system creates blocks of records for each transaction (i.e., one block per transaction) that are added to a chain every time a new block is created. Each block must be verified by multiple participants in order for it to be accepted by everyone in the chain; once validated, each new block references previous blocks on its way back up to the beginning (or genesis) of all time. This process makes it virtually impossible to change or alter any data within any given block without affecting all subsequent blocks.
In other words, blockchain provides an immutable record of transactions that cannot be altered retroactively without leaving evidence of tampering. This transparency means blockchain for small business will have better insight into where their money comes from and where it goes—as well as greater control over their finances—than they would otherwise have with traditional banking systems.
In addition to being transparent, blockchain also offers security benefits that make it easier for businesses to protect themselves against fraud and theft than if they were using traditional banking systems alone.
Read : How can blockchain technology change business operations?
What are the benefits of Blockchain For Small Business?
The biggest benefit of blockchain technology for small business is that it can allow you to set up a network in which all parties trust each other because everyone has access to an up-to-date version of every transaction. This kind of transparency and accountability can be a major plus if you’re running an organization where many people or departments are working together across multiple levels; with blockchain’s decentralized structure, anyone can see what’s going on at any time. Let’s cover the other five ways how blockchain for small business can benefit and help them grow.
1) Security
In an age of data breaches and cyberattacks, every business needs security. Blockchain uses one-way encryption technology to keep businesses safe from hackers and protect sensitive customer information. Blockchain has gained notoriety as a digital ledger for cryptocurrencies like Bitcoin, but there’s a lot more it can do. Since blockchain is an open-source technology with clear rules and structure, data stored in the blockchain can be considered highly secure by today’s standards. This makes blockchain for small business a big yes!
No one person or company has ownership over any given information on blockchain because each user owns their own copy of that data; when updates are made to it, all users have access to those changes simultaneously.
2) Transparency
One of blockchain’s main selling points is its security and transparency. Once data goes onto a blockchain, it cannot be tampered with (without changing all subsequent blocks). The blockchain’s history is immutable. It also doesn’t have a centralized point of failure; if one node on a network goes down, there’s no risk that the entire system will collapse. Blockchain transactions are fast: Because each node on a decentralized network verifies new transactions, they can be completed quickly. When trading across borders, delays caused by banks and third parties can slow things down—but that won’t happen when using blockchain.
3) Traceability
The most salient benefit of blockchain for small business is it enables traceability. It makes it easier to track your inventory and shipments. Imagine having a tag on each product that would automatically indicate its origin, current location, and destination. Companies could also easily check if their product had been recalled or not.
Blockchain technology would also be an excellent choice for tracking how businesses treat their employees: Many companies are already using employee ID cards to record when they clock in and out, but with blockchain technology, these ID cards can record any work-related data: exactly what was done, time spent doing it, compensation given, etc. This provides transparency about working conditions and improves performance reviews because evaluations can be based on hard facts rather than assumptions about attendance or attitude.
4) Cloud storage
Blockchain is a game-changer when it comes to cloud storage. The decentralized nature of blockchain eliminates risks from storing information outside your direct control, ensuring that your data won’t be lost due to security breaches or catastrophic hardware failures. Additionally, blockchain removes third parties from storing your data, which means you have full control over your information and how it’s shared. By eliminating these concerns, Blockchain saves business owners time and money on cloud storage providers like Google Drive and Microsoft OneDrive.
5) Identity management
Blockchain for small business helps with identity management. Since your information is stored on a decentralized network, it’s significantly harder to be hacked or stolen from compared to centralized databases like those held by financial institutions and other third parties. Centralized systems are also vulnerable to tampering from hackers who might intentionally set out to corrupt data. In blockchain systems, each user has a digital ID that gives them complete control over their own data—there’s no way for others to tamper with that information unless you give them permission first.
Also Read : Top 5 Advantages of Blockchain Technology for Your Business
What are Implementation Applications of Blockchain For Small Business?
Of course, beyond just implementing blockchain into a particular area of your business, you’ll also need to educate yourself and others in order to implement it effectively.
Where you can use blockchain depends on your business. However, because of its decentralized nature, it is often most appropriate for applications where there are several stakeholders or data storage points involved. The ability to keep transaction records secure and easy to access makes blockchain an effective choice for areas such as supply chain management and trade finance. It’s even becoming a popular way to handle real estate transactions! As always, though, make sure that blockchain is a good fit for your business before implementing it.
While blockchain was originally designed to facilitate digital currency transactions, its potential has far surpassed that original scope. The distributed ledger technology enables users to share databases across a vast network of independent computers, allowing for data transparency and anonymity in a system free from centralized control. The versatile nature makes blockchain for small business must have.
Instead of having one intermediary entity like a bank verifying transactions and storing customer information, blockchain allows multiple companies and individuals to transact with each other directly via their own private ledgers. This prevents duplication and manipulation of information, which is particularly beneficial for small businesses—who don’t have an army of accounting experts at their disposal—and could lead to increased profits. A good example: With consumers buying more products online than ever before, one vendor managing inventory across all their sales channels is easier said than done.
What else do you need to know about Blockchain For Small Business?
Blockchain is a digital ledger recording economic transactions that are accessible to anyone with an internet connection. In its most basic form, it’s a continuously growing list of records called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, timestamp, and transaction data.
By design, blockchains are inherently resistant to modification of data; once recorded, information can’t be altered retroactively without changing all subsequent blocks. In short: blockchain tech makes all your transactions transparent for anyone who wants to verify them—and it does so in real-time. This means banks, accountants and other financial institutions can process everything from international payments to stock trades faster and more securely.
For businesses operating on smaller scales, blockchain offers opportunities for greater transparency and increased trust between parties (customers included). For example, food retailers could use blockchain technology to trace contaminated products back to their source in mere seconds—potentially saving millions of dollars by preventing further contamination from spreading. Similarly, hotel chains could use blockchain technology to ensure their properties aren’t housing human traffickers or terrorists by verifying IDs against watch lists before allowing guests entry into their facilities.
Of course, there are many ways Blockchain for small business could benefit from a system like this – but what if you’re not quite ready to commit?
Ending words on Blockchain for Small Business
With all that said, let’s quickly discuss blockchain for small businesses. If you’re a small business owner and have decided to implement blockchain into your company, it can actually be done relatively easily. For example, there are many APIs (application programming interfaces) available on Blockchain technology that allows you to get started with setting up an application in minutes. Besides APIs, there are various programs to help small businesses utilize Blockchains such as Sjain Ventures’s Blockchain-as-Service offering.
