The current business atmosphere puts many small and medium-sized ventures in a disadvantageous position. Although they play a crucial role in building any major economy, they continue to face barriers to entry. In such challenging times, it has become evident that small businesses need blockchain technology to fuel their growth and survive in a market that is heavily tilted against them currently.
Streamlining Business Flows with Blockchain
Small businesses often neglect the fundamental processes of inventory, invoicing, and payroll in their bid to focus on scaling their businesses. However, business flows that support their products and services also need to evolve. Small companies often resort to purchasing a CMS or CRM platform or hiring the services of a service provider. Blockchain, through smart contracts, offers a more economical alternative. Using this, they can create and enforce deals between users, who will serve as their clients and merchants. With smart contracts, companies can solve the issues of handling inventory fulfillment, settling interest fees, paying employees and bills, closing new deals, creating insurance policies, or any other transactional activity. While this may sound too complicated, blockchain online courses for beginners can help them learn the basics of technology and employ them in their processes.
Boosting Security and Enhancing Privacy
Any significant reduction in overhead costs is advantageous for small businesses. But security and transparency are also value-added benefits, which is why small businesses need blockchain. Through a system of cryptography-protected public and private keys, small businesses can ensure that they are verified by the services without giving away their personal or financial information that is sensitive. Also, web-based attacks cost small businesses a lot of time and money. However, the decentralized nature of the blockchain requires the hacker to breach all the peer nodes simultaneously. Thus, it becomes almost impossible to carry out DDoS attacks.
Bridging the Gap Between Big and Small Businesses
The rigorous procedure for obtaining a bank loan often starves businesses of the time they could otherwise devote to more productive activities. As such, small businesses are usually starved for funding. However, several past ICOs have raised much more funds than their expectations. An ICO is a way for startups to raise capital by offering their crypto tokens to willing buyers. This has made it convenient for ICOs to raise funds as the team employed to create the token, and the track record of the company fuel the token’s value. Although inconsistent, it has helped to fund hundreds and thousands of new businesses.
Blockchain is a new technology, and the infrastructure that exists in most places is struggling hard to support it. However, it represents a rising tide, and small businesses need blockchain if they want to be successful in the near future. As blockchain gains more stability, small and medium-sized enterprises will explore new ways of business are emerging.