Can Blockchain help your small business?

Can blockchain help small business? - blockchain text on technology connection background, distributed ledger technology conceptIf you’re familiar with Bitcoin’s revolutionary cryptocurrency then you already know about an innovative technology known as “blockchain”.

A blockchain is a transparent digitised public ledger – in essence, an unhackable record of transactions. The computer of each blockchain user shares in maintaining and hosting the system. Blockchain is also a truly transparent system; everyone involved has access to every blockchain transaction in real time.

As a small business owner the value of secure financial transactions may be obvious – but blockchain technology offers much more than a safe option for data transfers. Once you can imagine the variety of applications blockchain technology has to offer, you’ll understand why some are calling its development more important than the internet.

Easier access to capital

One of the great benefits of blockchain technology is it opens up opportunities for anyone to access funds minus the costly banking fees and endless paperwork. Using a blockchain, lenders can authorise financial agreements with another party, sidestepping the administrative hassle that comes into play when “middlemen” are in the picture. Some financial institutions are already working with blockchain technology to offer small enterprises attractive financing solutions at much lower fees. Moving to this type of technology benefits all parties; it improves accountability and streamlines transaction tracking.

Save money on payment transfers

Using blockchain technology to transfer money to employees and suppliers anywhere in the world  offers businesses significant cost savings. With the blockchain there’s no need to transfer funds between financial institutions, saving bank transaction fees. Small business owners who operate internationally know all too well how quickly banking fees can add up.

Sign smart contracts

A blockchain “smart contract” allows two parties to enter into a binding agreement without the need for registration authorities. Smart contracts can help small companies move forward on their business plans more quickly while lowering costs. It’s expected that smart contracts will revolutionise the financial and real estate industries.  Blockchain can simplify and automate agreements, eliminate legal and accounting costs, and lower the risk of fraud.

Protect intellectual property

Blockchain technology, including smart contracts, can help protect a small company’s IP. It can be used to easily register and clear IP rights and track the distribution of unregistered intellectual property. Small business owners can also use the blockchain to establish and enforce agreements and licenses. This makes it much easier to collect on royalties and payments.

Improve customer loyalty

By tapping into the blockchain’s secure digital verification capabilities, small business owners can streamline their loyalty rewards program. Businesses and customers can interact through a smart contract using digital wallets and social media.  Normally this can be a time-consuming project for a small business owner; however blockchain technology can save hours of  admin time and personnel costs.

Now that you understand the power of the blockchain, how might you use it to increase efficiency and improve your bottom line?