For almost a decade now, blockchain technology has been in the news and captured everyone’s attention for the innovation it brings. The rapid advancement of technology has reached a stage where small enterprises must carefully consider incorporating it into their business strategies. According to a Gartner report, blockchain’s economic value is expected to reach over $360 billion by 2026 and $3.1 trillion by 2030.
Upon hearing the word “blockchain,” people immediately picture cryptocurrencies because they often find out about the technology when they research where to buy Bitcoin. Since its inception in 2008 as a Bitcoin transaction log, blockchain has seen substantial evolution, especially because Distributed Ledger Technology (DLT) is at the heart of all blockchains.
Small firms meet new challenges in the constantly changing digital market, which calls for creative solutions. One tool that can potentially transform how small businesses run completely is blockchain technology. Beyond the marketing gimmick, this technology empowers entrepreneurs with numerous real advantages.
Blockchain technology has been designed as a platform that enables the creation of services that bridge the gaps in the present financial services. It has many alluring services for startups because it provides efficient and affordable solutions to make and receive payments, improve logistics, and enhance customer service. Startups enjoy extended benefits when integrating blockchain technology, which could vary from lower overhead expenses to efficiency and enhanced transparency and security.
Traditional services could keep track of spending, preferences, and transactions, but blockchains are better in the fact that they enable a more effective collaboration between organizations and make data sharing and synchronization easier. Startups relying on blockchain can boost customer satisfaction by providing clients with a smoother purchasing process and faster transactions. Additionally, blockchains can assist small companies in safeguarding and trademarking their intellectual property and preventing plagiarism by larger competitors.
Here is how blockchain powers business transformation for small organizations.
Startups can benefit from transparent and secure transactions
Blockchain eliminates the need for go-betweens by ensuring safe and transparent transactions. Small firms are more confident in operating and engaging in new projects, knowing that their transactions are registered on an unchangeable ledger that everyone in the network can access.
Digital currencies are gaining increasing attention among young people, especially since regulations have been crafted worldwide. When a startup integrates blockchain-based payment solutions, it accesses new opportunities because it addresses a new audience that prefers using digital currencies because they provide better security and transparency.
Startups protect their clients’ digital identity
Startups should prioritize protecting their clients’ sensitive data because if their negligence enables a data breach, the company is held liable for the damage and will experience financial and legal issues. By embracing blockchain technology, businesses can prevent cyber attacks like phishing because they safeguard their clients’ personal information. Stakeholders will use a private key to validate and access information, so they will no longer put the data at risk.
Startups can expand services and access a global market
Blockchain technology enables companies to enter the global market because they no longer deal with the barriers associated with traditional financial systems. Because they rely on blockchain-based payment solutions, they can sell their services to foreign customers and register cross-border transactions. Their physical location no longer limits them; they can approach a global public and use the same currencies their clients prefer.
Startups can become more efficient
A small business must be efficient to expand and gain success. Blockchain technology can provide it with the necessary support because it enables it to complete processes faster, eliminating the need for intermediaries and powering automatic processes. Blockchain technology is innovative, reduces the need for resources, and increases performance when used for several tasks. With most jobs, automatized businesses can focus more on expansion strategies and improving core operations.
As mentioned earlier, one of the greatest benefits of blockchain technology is that startups no longer have to rely on third parties to complete operations, allowing them to streamline processes. It cuts down transaction times, allows them to save money on fees and taxes, and improves cash flow. A small business could only benefit from this because all its transactions will run fast and smoothly, and it will find it easier to manage its finances.
Startups can access diverse funding solutions
Blockchain is well-known for enabling crowdfunding for new projects, among other innovative funding options. A startup trying to expand its services and reach new audiences can access these various funding solutions to power its projects. This is one of the most fundamental benefits a startup can have when looking for ways to transform its processes because it can find capital more easily. Any business move will require funding, regardless of its size, so being able to pick from a broader range of funding sources could help entrepreneurs achieve their goals.
Startups benefit from improved supply chains
Companies rely on their supply chain to provide high-quality services to their clients. However, supply chains have been exposed to several issues that have hurt business transformation over the last couple of years. However, blockchain can improve supply chains by allowing all participants to check the authenticity of services and products and track them in real-time. The companies that use blockchain technology for their supply chains benefit from increased customer satisfaction and are at a lower risk of receiving counterfeited products from their suppliers.
What’s more to say?
Blockchain technology is a vital part of the Web3 revolution and has gained great popularity over time. The increased level of security and transparency it offers distinguishes it from other similar solutions. It’s built as a distributed and decentralized ledger that keeps track of all transactions without allowing anyone to alter them once recorded on the network. The blocks are interconnected and unchangeable so that no one can tamper with them. The technology is linked with digital currencies but has several other uses; as shown above, startups can use them to power business transformation.