Blockchain and cryptocurrency, in general, have gained a lot of popularity recently, mostly because of the insane rate of growth. Only the laziest did not talk about Blockchain and cryptocurrencies. Previously, only enthusiasts were interested in blockchain. Now more and more serious companies are turning their attention to this technology.
In this article, we will try to explain how to implement blockchain solutions into a real business process. And also how small companies can cope without the ability to develop their own product.
Application of Blockchain in Business
Blockchain technology is capable of achieving remote, autonomous consensus between users. Companies have realized that an autonomous data infrastructure is useful for things far beyond cryptocurrency. It can help bring products and transactional services to market quickly and inexpensively. And also offload traditionally high-security costs. These are the costs of security, Know Your Customer (KYC) protocols, data storage, and other overhead. Using Blockchain and the IoT will help reduce costs and allow businesses to compete in a highly competitive playing field.
Smart contracts.
Even the smallest companies have a dozen contractors, suppliers, and other business relationships. Currently, contracts establish mutual trust between companies. If a party to a contract fails to comply, the affected party goes to court. The process can take months and be expensive.
Blockchain turns standard contracts into smart ones, programmed, executed through the blockchain. The advantage of this solution is that the terms of the contract cannot be changed and there is no way to avoid them. Whether it’s billing, paying employees or bills, creating insurance policies, handling restocking, closing new deals, or any other transactional activity, smart contracts can have a positive financial impact on small businesses.
Smart contracts are an aid to small businesses that need constant cash flow, ensuring timely payment. For small enterprises that don’t have endless coffers, late payment can lead to setbacks. In fact, 40% of small businesses reported cash flow during the past year. Because there is no doubt about when funds will be available, companies can provide services and know that funds will always be available.
Attracting new capital to small businesses.
Regardless of the huge potential of the blockchain, the best thing that can come out of this trend is how new ideas find funding. Small businesses tend not to have financing because of the time it takes to get a bank loan. Venture capital, a more modern way of obtaining funds, is also obsolete because of Blockchain.
Blockchain was the original impetus for the new trend of selling first tokens. Therefore, the best crypto hardware wallet theme has become popular. When young companies are trying to find working capital, the ICO offers its tokens to willing market participants.
These currencies have value relative to cash through their transitive relationship with an underlying liquid cryptocurrency such as Ethereum. This also attracts traders to fund these new companies. The idea is that firms with more potential and success increase the relative value of the token. Regardless of the consistency of this principle, it has helped fund thousands of new businesses in fintech, healthcare, gaming, politics, social security, and more. Many see it as a competitive new financing option. It boasts numerous advantages over other methods. Companies no longer have to sacrifice future earnings or a portion of stock to get a shot at growth.
Remittances.
International remittances are growing every year. Businesses lose a lot of money on currency conversions. It can take up to 5 days to make a transfer. There is no unified interbank payment system, which also causes some problems.
Blockchain technology can help banks be more flexible, faster, and more secure. This is especially useful for banks that are subject to constant cyberattacks.
Today, the procedure for paying with cryptocurrency takes a few minutes. This processing speed is comparable to instant payments made by Visa or Mastercard.
Finding Employees.
Recruitment has always been a problem for companies. Endless interviews and competency tests are very tedious and require a lot of effort and time.
In the future, every employee will have a personal lifetime database open to employers. It will contain information about previous work experience and professional development. In this way, Blockchain will verify a potential employee’s competence.
This will save the HR manager and potential employer from having to conduct background checks and create extra tests.
Summing Up
Blockchain technology is a new era for the Internet community. Blockchain has been around for more than a year and is rapidly gaining popularity not only among online audiences. This technology is used in commerce, document management, business, and even in government. Undoubtedly, the advantages of the system allow us to say that it is the future. The only drawback is the high cost of development and implementation of software solutions.
However, the blockchain eliminates all intermediaries in financial transactions. It also eliminates fraud on the part of both the payer and the recipient. Therefore, investing in blockchain for business is profitable in the long term.
Follow technoroll for more informative articles.
Editorial Staff of the TechnoRoll, are a bunch of Tech Writers, who are writing on the trending topics related to technology news and gadgets reviews.