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Published on March 1st, 2019 | by Bibhuranjan

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How Blockchain Apps Can Help Your Small Business Growth

Blockchain has come a long way from a mere public transaction ledger for cryptocurrencies what it was in the moment of its inception in 2008. Today, this technology can act independently to improve transparency and security, and it can be applied for everything ranging from payment methods to cloud storage.

There have been some major events that have put blockchain technology on the map when it comes to business. One of them is the Hyperledger project of open source blockchains and connected tools. This project was started by Linux Foundation and supported by big industry players like Intel and IBM. As for the smaller players, recently we’ve heard the news about eleven Indian banks adopting blockchain-linked tech to help fund small businesses.

Since it is clear that, in the world of small enterprises, there is always need for doing things the simpler and quicker way, blockchain apps have gained much attention, and deservedly so. In this article, you’ll learn some ways blockchain apps can be helpful for your business growth.

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Sending and receiving payments

Let’s start with the most obvious way of using blockchain technology. After all, this was its original purpose. But what is the difference between making a simple online payment and paying via cryptocurrencies?

WIth blockchain technology, you can transfer money directly and safely to anyone you want, anywhere you want, almost immediately and at very low fees. Unlike with PayPal and online banking, with crypto payments, there are no mediators slowing down the transfer and charging high transaction fees.

This makes blockchain particularly handy if you have remote employees or you are selling or buying on a global marketplace. Companies like Bitwage, Coinpip, and Abra, are at the forefront of using this type of fund transactions to handle their business.

Making your contracts “smarter”

If you are in the business for a while, it is highly likely that you’ve heard of the term “smart contract”, since it’s been present since 1993. However, it has only been linked with blockchain since the creation of the Ethereum Project in 2013. Essentially, this platform runs self-automated programs that can execute terms of any treaty.

The communication flows between the contract parties, and when a mutual agreement is set, the contract is finalized. With such contracts, your business is capable of navigating regulations and lowering the additional costs of financial transactions.

Tracking and managing digital identities

The very notion of such a thing as a digital identity shows just how much technology is changing the business realm. Both large and small companies are using technology to communicate, execute payments, build a customer community, and market their products and services. The downside of this wide usage of the digital tech is the exposure to frauds.

Blockchain can help businesses create a unique authentication, resulting in reduced fraud and increased security. This is possible because the tech is based on indisputable identity verification via a digital signature founded on public key cryptography. In simple words, you are getting your private key which enables you to make money transfers, log in to online accounts, verify your identity, etc.

Using cloud storage

Cloud computing is embraced by many businesses because it enables scalability – various resources can be shared among many users and stored without occupying physical space or computer memory. However, free cloud platforms often do not offer enough memory, which makes small entrepreneurs give up of this way of storage.

Storj, an app that is still in its development phase, will offer safe cloud storage on a bargain. How? It will use the excess hard drive space to store 300 times as much documents as a conventional cloud. This will also open a new profit possibility for average users, while considerably decreasing the price to store data for businesses and individual users.

Paying the employees

We are far from making the payrolls a matter of cryptocurrencies a conventional thing, but in the market, it is always those who take the road less traveled were the ones who accomplished big things. Bitwage, which is probably the first Bitcoin-based paycheck service takes pride in timely payments and lower costs which come with blockchain tech. The whole process is more streamlined and it makes life easier for both the employees and the employers. The things get even simpler when we are talking about remote employees or freelancers. This form of payment can also be used to settle your debts to contractors and suppliers.

Resolving company issues by voting

Even the smallest of businesses have different stakeholders, investors and interest groups who have a say in certain decisions. Conflicts can be an obstacle on the way to growth and profit. Delegated Proof of Stake (DPOS) is a model of consensus which is decentralized, fast, and efficient, and it helps businesses avoid unresolved clashes. What it does is leveraging the influence of investor authorization voting to solve consensus matters in an impartial and democratic way.

Timestamping goes digital

Why would you need timestamping? Well if you have ever bothered visiting the notary office and paying for the service, then you know why. Let’s say you have a patent for a new product and one day someone appears with the very same patent and steals your thunder. If you haven’t verified the document with the notary, you have no claim over the patent, even though you had the idea first. With apps like Uproov, you can record and timestamp this patent, and any other document, artwork, photograph or video, and make it public. The signature on the stamp is written on the blockchain, so it can’t be touched by anybody, ever, which makes it even more trustworthy than the traditional notary system.

Managing the supply chain

The supply chain often consists of several entities. When backed by blockchain technology, every transfer of hands is acknowledged and documented, from the production to delivery and sale. This produces increased visibility and transparency, improves inventory management, and minimizes the delays.

How can all this combined make your small business grow?

All these conveniences that come with implementing blockchain technology in your business when combined can improve security and transparency, reduce expenditure, and facilitate complicated legal and accounting processes. As a result, you will have more time, money, and capacity to work on improving your service and conduct a solid growth strategy.

Blockchain technology has a long way to go until it becomes widely accepted, but it will undoubtedly continue to grow and develop, thus further facilitating business operations. The sooner you jump on the bandwagon, the sooner you will be able to enjoy the fruits of your labor. The choice is entirely up to you.

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About the Author

Bibhuranjan

Editorial Officer, technofaq.org I'm an avid tech enthusiast at heart. I like to mug up on new and exciting developments on science and tech and have a deep love for PC gaming. Other hobbies include writing blog posts, music and DIY projects.



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