What is one benefit of utilizing blockchain technology in your small business?
To help you understand the benefits of blockchain technology, we asked fintech experts and small business owners this question for their best insights. From the benefit of border-free transactionality to top-level data security, there are several benefits of utilizing blockchain technology in your small business.
Here are 11 benefits of blockchain for small businesses:
Because of the borderless nature of cryptocurrency, blockchain technology makes it easier to do business internationally. More traditional means of currency come with foreign transaction fees and conversion fees. Currencies like Bitcoin eliminate these expenses, increasing the potential for profit. Not to mention, accepting cryptocurrency often prevents having to set up alternate payment services to accommodate foreign clients. Blockchain technology is especially useful for digitally-based startups able to conduct business worldwide that may otherwise be deterred by barriers to receiving payment.
Michael Alexis, TeamBuilding
Immutability refers to the fact that it cannot be modified or erased once a transaction is recorded on the blockchain. All transactions are time-stamped and date-stamped on the blockchain, creating a permanent record. As a result, blockchain may be used to track data across time, allowing for a safe and reliable data audit. In contrast, paper-based filing is prone to errors, and legacy computer systems can be corrupted or decommissioned.
Oliver Andrews, OA Design Services
Secure cloud storage
Blockchain-based cloud storage is more secure and more affordable compared to other cloud storage options. The 256-bit encryption used in blockchain cloud-storage provides maximum protection against even the most advanced hackers. Moreover, blockchain cloud storage is up to 10 times faster than normal cloud storage thanks to the distributed and decentralized P2P network that connects users. The result is maximized uptime and download speeds for small businesses. These tremendous speeds plus distributed networking also contribute to lower cloud storage costs for the business. Overall, the business benefits from impenetrable security, more efficient access to stored company files, and lower storage costs.
Patrick Crane, Love Sew
One of the best arguments for using blockchain in your business is the smart contract, a self-executing digital contract that has its terms written directly into the blockchain code. Since the contract exists on a decentralized network, it cannot be lost, modified, or stolen without your permission, ensuring each party fulfills its contractual obligations.
If you run into issues with nonpayment, you no longer need to chase your clients down – you get paid when you complete the deal or your goods are returned to you without the need for expensive legal action or mediators.
James Diel, Textel
NFTs for marketing
We’re getting our feet wet with blockchain technology this year via NFTs to support our marketing. While not a direct blockchain application when it comes to our products, we believe it’s a good way to introduce our users to the technology while also testing the waters for new marketing campaigns.
Sylvia Kang, Mira
Affordable cloud storage
Cloud storage is one of the most crucial aspects of a successful business, as it encompasses the accessibility of your business database and statistics. Reliable cloud storage that offers strong encryption for your company’s database is usually expensive. That’s why the blockchain notion is the affordable option to preserve your data.
Natalia Brzezinska, PhotoAiD
Unique ownership/digital synergy
Blockchain technology has become increasingly popular over the last year with the birth and rapid growth of NFTs, as well as more and more people investing in cryptocurrency. One of the most intriguing ways that small businesses can utilize blockchain technology is to link digital assets with physical assets. Take a pair of shoes for example. You could create an NFT that correlates to the shoe product, such that those who own the physical, also own the token. This can gain trade value and be circulated and provide value to both the business and the customer, as well as an exciting form of entertainment. This is an innovative way for small businesses to stand out, generate conversation and popularity, and break into a new and young market.
Kashish Gupta, Hightouch
Blockchain-based systems are designed so that all participants have visibility into the data, even as information is only shared with those who need to know it. This feature enables improved efficiency and speed for businesses. Since everything is logged on a digital ledger that anyone with permission can access, an employee no longer needs to ensure that relevant people are informed — they can consult the record on their own.
Chris Thompson, Backdoor Survival
Efficient and secure document management
Document management is frequently one of the most pressing issues small organizations face. The use of blockchain technology enables easy access to information, document preparation, document history visibility through date stamps, and content recovery. Small firms can improve their overall process with these advantages, increasing production and efficiency. Furthermore, given that blockchain is decentralized, it effectively prevents unauthorized access to information. Blockchain technology protects and secures sensitive and confidential data.
David Bitton, Doorloop
Hiring better candidates
It’s easier than ever to hire someone across the world to do your marketing, writing, development, digital advertising and more. While it’s absolutely opened up the talent pool for small businesses, it’s also made it more difficult to verify a candidate’s background and experience.
Blockchain technology can help employers and hiring managers access employee academic records, previous employment records and personal references, stored on a trusted ledger held across multiple devices. In an instant, you can access and verify the personal data record of potential hires and ensure that the people you hire are who they claim to be.
Sylvia Fountaine, Feasting at Home
Top-level data security
When your business works with sensitive customer data regularly, blockchain technology can help improve your identity management processes. Assigning your customers with digital IDs stored on blockchain networks, it’s nearly impossible to corrupt and steal as fragments are stored across the network on multiple points rather than in one central location. Data on the blockchain cannot be changed, so consumers can take more ownership over their personal data as both you and they maintain clear transaction records and your business operations become more secure than ever.
John Li, Fig Loans