Small businesses need to improve their processes, customer success rates, and efforts to be big businesses. Blockchain is a distributed decentralized ledger that stores data in blocks across multiple volunteer devices. Since the unions make a chain, the system is called a blockchain. It’s the most tamper-proof way to data storage and management known to man. It helps businesses store and distribute information without it being edited.
Blockchain’s transaction ledger for public addresses is open to viewing. While this unprecedented layer of accountability makes small businesses transparent and helps them build trust in their customers, it indirectly drives the company’s growth, community, and customers. Technological advancements like blockchain technology can optimize business efficiency, customer satisfaction, and various modular functions of a business to add to its ROI.
Blockchain for Small Businesses
Get Cloud Storage without Burning the Bank
An average business spends a large amount of money buying cloud storage. Research shows that 51% of small businesses spend around $120,000 per year on the cloud. However, 11% still spend more than $1.2 million. Blockchain provides a cost-effective way of data storage and offers better security than ordinary cloud storage. Small businesses can use distributed cloud storage apps and avail hard drive space at cost-efficient pricing. A blockchain-based cloud storage app keeps everything well encrypted with special access to users who have designated keys.
Build Business Relationships via Smart Contracts
Blockchain-based intelligent contracts help businesses self-verify and self-enforce contracts, saving small businesses precious time. The technology stores the arrangements on a blockchain ledger which mitigates any chances of manipulation. It is in the company’s interest to store essential documents like leases, vendor agreements, and even employee contracts as smart contracts. It saves small businesses the recurring cost of hiring attorneys.
Small companies can facilitate, authenticate and enforce contracts between parties digitally. The way intelligent contacts are code convertible, storable and replicable makes them the perfect choice for small businesses that aim to scale. Think of it as advanced security at dirt-cheap pricing.
Raise Capital for Business Finance
Initial Token Offerings oR ITOs are an alternate way for businesses to raise capital. An option gaining popularity compared to traditional lenders and crowdfunding platforms, ITO tokens are readily available and trade efficiently on exchanges developed particularly for them. Small businesses can offer blockchain-based tickets to their company to raise capital. It is often a trusted way of funding a business and helping its growth.
Sort Money Management
Money transfer processes are too risk-prone for small businesses that fear security breaches during these transactions. Such companies can pay remote employees, do business transactions, and avail of instant loans with the help of blockchain tech in a safe manner. Blockchain eliminates the need for intermediaries and the extra costs they incur. Cryptocurrency works with free transfer flow that can give small businesses a competitive advantage in crowded markets. Blockchain also guarantees irreversible payments.
Supply Chain Management
Sometimes small businesses function on elaborate paperwork that’s difficult to manage and delays urgent transactions. Especially for companies involved in the supply chain, logistics, and shipping, blockchain can keep track of deliveries and streamline outputs by mitigating the chances of delay due to paperwork processing.
Blockchain aligns with SCM to create an immutable ledger for record-keeping. This makes the management of manufacturing sourcing and storage a breeze. It also offers rapid troubleshooting of instances of inefficiencies and permits authentication procedures.
Bounty campaigns are the new buzzword in the field of marketing. Here, small businesses can grow brand awareness by offering small rewards in terms of cryptocurrency. Small companies can issue blockchain-based tokens with utility value that let owners buy a company’s goods and services for these tokens in return.
Notarization is another benefit of distributed ledger technologies that small businesses can benefit from. Block-chain-based notarization helps kill the chances of fraud and assures parties about the authentication of deals. It ascertains the integrity of data and offers various perks like tampering resistance, traceability, and non-repudiation.
In the End
Seemingly expensive and high-tech, blockchain technology is accessible to big and small businesses alike. In reality, the cost of incorporating blockchain integration into your business operations is less and can promise better returns.
Small businesses can start using bitcoin and other cryptocurrencies for transactions for quick international payments without intermediaries. The absence of mediators makes the fund transfer quick, easy, and cheap. The use of blockchain spans beyond digital-first businesses and spans real-world companies like gyms, eateries, shopping malls, and others. The best possible use of blockchain technology for small to medium-sized companies is how it streamlines various business dealings to save small businesses both time and money.
Blockchain helps businesses record exponential growth with its multifaceted benefits. We hope small businesses learn from these examples of blockchain use-cases and harness various cost-saving advantages with blockchain development for their business. You can hire a software developer to build custom blockchain solutions for your business.