Should I embrace Blockchain technology for my business? Is the technology going to help me deliver better services? These questions are being asked by every business owner, large and small, as Blockchain technology has been featured on every news page, media channel, and group discussion.
The big, well-known brands have already begun exploring Blockchain’s potential benefits for their businesses, but small businesses still have questions. SMBs are still skeptical if they should invest in Blockchain development or wait for the technology to cross its infancy stage.
This article is for you if you are in the latter group. We will be discussing the potential applications of Blockchain technology in small businesses.
We are now ready.
How Small Businesses Can Use Blockchain Technology
1. Payment System SImplified
The current payment system is complicated, costly and time-consuming. The process involves many intermediaries, which slows down transaction speeds and increases expenses.
With Blockchain entering into this equation, the process will become a lot more streamlined. This technology will remove the need for intermediaries and replace cash with cryptocurrency like Bitcoin.
It will lower the cost of cross-border payments and facilitate instant, seamless and cheaper payment transfers. It will encourage small businesses to collaborate with remote workers and help them focus on the global market.
2. Supply Chain Management
Blockchain will have the largest impact on small businesses in the Supply Chain area. Blockchain technology will make it easier to track all activities related to Supply chain management. This includes obtaining raw materials, production, testing, transportation, and distribution.
It will allow small businesses to combat fraud and counterfeit products. This will increase trust between consumers and manufacturers. It will also provide them with an escape plan from the situation in which the product’s actual value is reduced due to counterfeit products dominating the market.
The technology will allow business owners to manage the supply chain while still focusing on quality and efficiency.
3. Easy Access To Secure And Transparent Cloud Storage Service
Small businesses rely on traditional cloud storage options like Amazon Web Services or Google Cloud Platform to store and manage large amounts of data. These centralized cloud storage solutions are great to use, but they fall short when it comes to transparency, security, cost-effectiveness, and transparency.
Blockchain will provide transparency and security by offering a decentralized storage platform. It will store data in a way that can only be modified by the owner. In other words, Blockchain will ensure that the data is securely stored and managed and that too without spending $22 billion on cloud storage like before.
4. Smart Contract
Small businesses are required to engage lawyers and brokers in order to complete a financial or legal transaction. This increases trust and security but it also makes the web more complicated and costly.
Blockchain, in this case, smoothens the regulatory process by replacing the intermediaries with a Smart Contract. Smart Contracts, also known as automated contracts, will make sure that the contract is always up to date. This ensures transparency, speed, cost-effectiveness, and speed.
5. Identity Validation Process
The identity validation process will also be influenced by blockchain technology. Blockchain technology will allow business owners to access an individual’s identity records by entering the correct public cryptography key.
However, the information is not altered. This will reduce fraud risk and allow for faster access to important areas such as online account logins, passports, EResidency, birth certificates, and other information.
6. Loyalty Program
Blockchain can also be used to boost loyalty programs. Blockchain will increase transparency and lower the management costs, which will give users more money to invest in referral marketing.
Blockchain, as we’ve seen in this article will provide small businesses with many advanced solutions that can transform the business world in many ways. But for this to happen, the business owners will have to invest in Blockchain development and enter into this market of 2.3 Billion US dollars.