Blockchain technology is an undeniably innovative field which is quickly revolutionizing the world as we know it. The simple idea of a distributed ledger offers easy access to a wide variety of new services, including cryptocurrency wallets and payment systems. You can buy Bitcoin with credit card and spend it to make outbound transactions or trade on the cryptocurrency market. Or at least that’s what many people still believe, which isn’t surprising, unfortunately.
But there are many benefits of blockchain that can help small businesses a lot, especially when they’re just starting out. Let’s see a couple of excellent utilities of blockchain that can help your small business and make it successful in no time.
Table of Contents
First of all, what is blockchain?
Blockchain is a technology that helps to keep a trusted, distributed system of records in sync. These records create benefits for a variety of users and allow different types of industries and regulators to gain trust over time. Together, they offer significant advantages to businesses over a more traditional system, such as a centralized database.
And what is the common thing between small business ideas and blockchain? Well, there’s much more in common than you’d expect. Let’s find out the biggest benefits for your small business that blockchain could offer!
Benefits of blockchain technology for your SMB
Without a doubt, blockchain will remain a buzzword for the time to come. But what are the current benefits that it can provide?
More profit for you, less profit for intermediaries
By cutting out the middlemen and their transaction fees on each transaction, blockchain gives you the option to improve your profit margin by 3-4%. This can be a great advantage for businesses that rely on transactions to keep them running. Not only does it save you money, but it also streamlines the process and makes it more efficient.
An example: Ripple is taking on SWIFT, the monopoly of cross-border payments. According to Penser , the blockchain network has trumped a legacy transaction company.
Faster and cheaper cloud technologies
Cloud technologies play a big role if you run a small online business today. There are many problems with traditional companies:
- Scalability issues – in the past, companies were facing issues with scaling. The flipped term was “toxic growth.”
- Online data security – boomers had horrible issues with viruses, malware, and other “nasty” stuff.
- Storage management – server storage management has often been a problem for companies, especially those in the technology field. Expensive hardware was the only resolution.
Well, not anymore. Blockchain technology has the capability to enable a full spectrum of cloud solutions. Thanks to blockchain, many of the hardware burdens of small businesses are dealt with. Cloud technology also helps small businesses manage their companies from any part of the world, on any device. This allows for a higher level of flexibility and convenience when it comes to managing a small business. In addition, blockchain-based cloud technologies can help to improve security and protect data more effectively.
A variety of payment methods
As a business owner, it’s always beneficial to support as many payment methods as possible. This not only makes it more convenient for your customers, but can also attract new business. Really, accepting crypto can help you get a lot of new clients. By expanding your payment options to include cryptocurrency, you can open your business up to a whole new group of potential customers. So why not give it a try? You might be surprised at how many people are willing to pay with crypto!
Smart contracts to tackle all types of deals
Businesses can use blockchain for smart contracts, that are digital contracts built into a blockchain. This decentralized database allows the creation of secure records and helps eliminate time delays and forgotten signatures during the transaction process. Computer networks will verify each contract and make sure they’re secure. The codes cannot be changed or manipulated. There are three benefits of using smart contracts:
- The deal is made in no time – a smart contract can complete a deal within a couple of minutes. You can sign it anywhere, without
- Avoid notary and attorney taxes – if you’re buying buildings and other premises, you might end up paying thousands of bucks for the takeover. However, you can skip paying these high notary and attorney fees with smart contracts.
- Stop chargeback attempts from fraudsters – unfortunately, it’s not one or two cases where customers abuse the system and get plenty of chargeback requests, even though the goods are received. Banks often side with customers to avoid trouble with the latter, and you’re the party to get penalized, although you have done everything right.
Summary
Blockchain is a very powerful weapon and can help your business grow. It’s a tool for every small company that can make a big difference.