With nearly everything going online, it is really essential for small businesses to compete with other brands and organizations and survive in the market. A few of them are trying to be efficient and are taking up better options of serving their customers in a better manner so that they can have a consistent hold on their potential customers by implementing the Blockchain Technology.
As per the data from CNBC, about 84% of companies today are implementing blockchain technology which is opening up numerous opportunities in the booming blockchain market.
What is Blockchain Technology?
Well, blockchain is a database of independently verified information. It is much like a huge spreadsheet, copies of which are available on various computers which are known as nodes. The nodes are connected to each other which create a chain. The entire setup is very efficient as whenever the user makes a new entry in the database on any of the nodes, all the other copies get automatically updated. It uses a cryptographically secured system that prevents the risk of hacking and tampering of data.
Blockchain Technology for Small Businesses
Blockchain technology is quite useful in all sizes of businesses, ensuing smooth and hassle-free transaction and even for raising capital. Although the advanced technology seems to be quite expensive and accessible only by large firms with high-end developers, it is clearly not. You might be thinking- Really? Well, yes! The cost of incorporating blockchain technology in a small business is way lesser than you think.
It is a great choice for online or digital as well as offline small-scale businesses like restaurants, salons, gyms, or any other small business falling under the category of dealing with a large amount of customer database on a regular basis. It may be used to approve payrolls, mutual arrangements, customer payments, and cloud computing, among other things.
How beneficial is this technology?
Blockchain technology reaps numerous benefits for small businesses which can be summarized as:
· Easy Payment Processing Option with Easy Transfers: Blockchain allows small businesses to directly transfer funds in a very secure manner even to remote employees at a very low fee. As blockchain technology avoids the existence of intermediaries, it helps in cutting down the delay in transfers without charging high transaction fees.
· Cloud Storage Options: Blockchain offers distributed cloud storage options to businesses which proves very helpful for small businesses. Cloud storage applications like Stori allow its users to easily rent hard drive space with caboodle encryption to ensure the security of data.
· Smart Contracts: This feature allows small businesses for evading regulations of financial institutions for smooth transactions. These smart contracts are connected with automated computer programs which make sure that the terms of the contracts are met. Also, these contracts are legal and more secure than other traditional contracts. It helps in saving a lot of time and legal fees.
Apart from these prime benefits, Blockchain technology also gives way to better Networking and the use of IoT. It reduces paperwork required in the supply chain and delivery business too. It allows the small businesses in the field of the supply chain to easily keep a track of shipments and cope with delays regarding paperwork.
