Blockchain technology has emerged as an incredible technology, which is gradually being adopted by many businesses, small and large, across the world.
The various benefits that a technology like blockchain could bring to any business, is the reason why it is witnessing a widespread adoption across all sectors. So what’s all the hype about the technology?
What is Blockchain Technology?
Blockchain technology is a distributed ledger system that allows for sharing and distribution of information. Utilizing a distributed system of verification, Blockchain ensures legitimate and credible transactions. It also allows for transparency in the system, since all the transactions are recorded on ‘blocks’ and are visible to all the users on the Blockchain.
The blocks that make up a Blockchain are all connected to each other. Each of them contains a cryptographic hash of the previous block, a timestamp, and transaction data. It is virtually impossible to manipulate or tamper with data stored on a Blockchain.
How Can It Benefit The Small Businesses?
Small Busineses have to fight extra hard to make it in the market. They are often driven out of the game by large companies that have better technology, resources and more manpower to ensure smooth execution of their duties. Here are a few ways in which small businesses can benefit from Blockchain:
Supply Chain Management
Blockchain has time and again proved its worth when it comes to supply chain management. It has been able to ensure transparency in the entire process and guarantee quality control, smooth shipment of orders and package tracking. If more and more small businesses use blockchain for supply chain management, they can organize and track their business in a more feasible manner. It can massively improve logistical issues that any business might be facing.
Blockchain-based Smart Contracts can enforce legal agreements and MoUs that cannot be disregarded in the case of a dispute. The terms and conditions are already underlined in a smart contract and as soon as both parties deliver on what they promised, they receive their incentives, without anyone having to hunt the other party down to retrieve their incentives. The entire process is digital.
Blockchain is increasingly becoming the go to option for cross border transactions. Many traditional financial institutions are using blockchains like RippleNet to facilitate transactions. Blockchain eliminates the need of any financial middleman, thereby you do not lose any extra money, in having to pay a cut to an intermediary. It is one of the fastest ways to ensure international transactions take place in real time.
It’s quite evident that blockchain technology is definitely going to provide small businesses with an edge.