December 19th, 2018 | Updated on June 17th, 2020
Should I embrace Blockchain technology for my business? Will the technology really help me in delivering better services? – With Blockchain technology having been pasted on the front page of every newspaper, media channel and group discussions, these questions have occupied the minds of every small and large business owner.
While the large, established brands have already jumped into the competition and have started exploring the different possibilities of using Blockchain for their business, the small businesses are still wondering what to do. SMBs are still skeptical if they should invest in Blockchain development or wait for the technology to cross its infancy stage.
If you fall into the latter category, this article will be a great help for you. Here, we will look into what are the possible applications of Blockchain technology for small business.
So, here we go.
Different Ways Small Businesses Can Use Blockchain Technology
1. Seamless Payment Transfer
The current payment system is cumbersome, expensive and time-consuming. Many intermediaries are involved in the process, which retards the transaction speed and elevates the expenses.
With Blockchain entering into this equation, the process will become a lot more streamlined. The technology will eliminate the intermediaries from the picture and replace the cash with cryptocurrencies like Bitcoin – lowering the barrier to cross-border payment while stimulating instant, cheaper and seamless payment transfer. It will also encourage small businesses to work with remote employees and focus on the global marketplace.
2. Supply Chain Management
The major application of Blockchain in small businesses will be in the Supply chain area. The technology will ease tracking of all the activities associated with Supply chain management process – ranging from obtaining raw material to production, testing, transporting, and distribution of the final product.
It will help small businesses to fight back the frauds and counterfeit products, which will build trust between manufacturers and consumers. Besides, it will give them an escape from the situation where the actual product’s value declines in the market due to a fake copy prevailing in the market.
In other words, the technology will help business owners to maintain the supply cycle while focusing heavily on the quality and efficiency factor.
3. Distributed Cloud Storage Service
To store and manage a heap of data, small businesses rely upon traditional cloud storage solutions like Amazon Web Services and Google Cloud Platform. While these centralized cloud storage platforms are good to go with, they take the back seat when it comes to transparency, security, and cost-effectiveness.
Blockchain, in this scenario, will embed security and transparency into the process by offering a decentralized storage system. It will offer the service to store data such that it can’t be changed without the consent of 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
Currently, the small businesses have to involve brokers, lawyers, and other such intermediaries while performing a financial or legal deal. Though this increases trust and security, it makes the web complex and costlier.
Blockchain, in this case, smoothens the regulatory process by replacing the intermediaries with a Smart Contract. Termed as an automated contract, Smart Contracts will ensure that no one could alter what’s written in the contract. Thus, maintaining transparency, speed, and cost value.
5. Digital Identity Validation
Blockchain technology will also play a pivotal role in the identity validation process. The technology will empower the business owners to check into an individual’s identity-related records on entering the right public cryptography key, but without altering the information. This will cut down the risk of fraud as well as facilitate faster access to information in major areas like online account login, passports, E-Residency, birth certificate, etc.
6. Loyalty Program
Blockchain will also give a boost to marketer’s loyalty program. It will induce transparency and reduce the management cost, which will provide users with more funds to invest in referral marketing.
As we have covered in this article, Blockchain will serve small businesses with a myriad of advanced solutions and transform the business world in varied 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.
So, are you looking forward in the same context? If so, hire the best Blockchain app developer today. And in case you still have any doubts, leave a comment below.
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