How Blockchain Accelerates Small Business Growth and Development?
New technologies are revolutionizing businesses like never before. One such technology is blockchain, which is undoubtedly setting the course for digital transformation. Invented as a technological architecture for Bitcoin in 2008, blockchain solves some of the most significant issues of digital economies. It can help dodge traditional cybersecurity threats with security, data protection features, and networking capabilities.
Blockchain technology also offers greater transparency, improved traceability, increased efficiency and speed of transactions, and reduced costs.
As per reports, the global blockchain technology market is estimated to reach $20 billion in revenue by 2024. These stats are more than enough to understand the potential of blockchain in the coming years.
In this article, we will discuss the ways in which blockchain is accelerating growth and development for small businesses. So, without further ado, let’s begin!
Ways Blockchain help transform small business growth and development
In this section, we will discuss the key advantages of blockchain technology and how it will help small businesses scale and grow. So, without further ado, let’s get started!
Greater transparency
Transparency in business operations is a major issue today. Essentially, this issue revolves around industry practices and business ethics. But transparency in any business is essential to fostering employee and client trust.
Some businesses turn to the tactic of implementing rules and regulations to improve transparency. However, centralization does not always lead to 100 percent transparency. This is where blockchain technology comes into play. Many top blockchain companies are offering innovative blockchain solutions to enterprises of all sizes. You can implement a decentralized network where there is no need for centralized authority. This, in turn, improves your system’s transparency.
In this way, you can entrust your employees with greater responsibility and accountability. With blockchain, you are not required to validate or approve their transactions. However, if you still want to include the element of validation, then it’s best to use the consensus method. This means that the blockchain records a copy of each transaction and keeps it there permanently.
Increased efficiency and speed
Blockchain removes middlemen in many processes, and this allows transactions to be completed faster and more efficiently. You can store the documentation on the blockchain with transaction details, eliminating the need to exchange paper. Clearing and settlement can be much faster as there’s no need to reconcile multiple ledgers.
Customer engagement
Another important role of blockchain is to engage a wider target audience. The amalgamation of blockchain and customer engagement brings forth several advantages and opportunities. This includes allowing users to take control of their personal information, adding the power of transparency to the business model, fostering quick transactions, and ensuring entrepreneurs and marketers identify loyal customers and build trust.
Reduced costs
With the integration of blockchain in core business processes, organizations can save money. The technology is beneficial in creating proficiency in processing transactions. Also, manual tasks such as aggregating and amending data and auditing processes are reduced. The ability of blockchain to streamline settlement and clearing helps in process cost savings.
In addition, with the help of blockchain adoption, organizations can reduce a lot of costs associated with third-party vendors. They are not required to pay for any vendor costs as this technology has no inherited centralized player. Moreover, when it comes to validating a transaction, there is less interaction. This further removes the need to spend money or time doing basic stuff.
Immutability
Immutability means that transactions once recorded on the blockchain cannot be changed or deleted. On the blockchain, all transactions are time-stamped and date-stamped, so there’s a permanent record. This, in turn, enables tracking of information over time, enabling a secure, reliable audit of information.
Robust security
Another major role of blockchain for startups and small businesses is to offer robust security measures. The technology comes with the power if transparency and decentralization, which encourages users on the network to store and verify some or all the information stored in the network. Also, the blockchain network comes with security and higher complexity considerations, which lower the risk of cyberattacks.
Additionally, the use of blockchain for digital identity facilitates users with the function of protecting and maintaining their identity and seeing how they can access their information and use it for any purpose.
Capital raising
Blockchain adoption provides business owners with an alternative method to raising capital – Initial Token Offerings (ITOs). ITOs refer to tokens available for exchanges where they can trade freely. These tokens are comparable to equity or a revenue share in a typical company.
Investors who are interested can buy into the offering and receive new blockchain-based tokens from the organization. This token may just represent a stake in the company or project or have some utility in using the service or product the company is offering. ITOs have become a viable capital-raising alternative for businesses of all sizes due to their rising popularity.
Conclusion
To conclude, blockchain has the potential to change the face of businesses. It is the part and parcel of digital transformation. It can offer a number of benefits to both small and large enterprises. It will also take the consumer experience to a different level altogether. If you have any questions regarding blockchain technology, you can take help from top growing companies offering innovative blockchain solutions. They can help you better understand how the technology functions and how exactly your business will benefit from its adoption.
