Blockchain For Small Businesses
Is the blockchain for small businesses? And can your company use it today?
At its foundation, blockchain is about trust.
In a commercial transaction, trust between the participants is essential for the transaction to run well. When a transaction is recorded on the blockchain, there is no way to edit the data without a record of it.
The blockchain may be used by anybody, not just major organizations.
Even small and medium-sized organizations can gain since they have less influence in a transaction and must rely on data given by larger enterprises. There is no way to dispute the order date, delivery location and time, or the payment date in a supply chain scenario for a small firm. As a result of the lower overhead costs, faster delivery and faster payments are possible for all parties involved.
Smart Contracts
The blockchain’s smart contracts are essential to the function of the blockchain. When certain criteria are satisfied, events can be triggered without the need for human intervention. For example: an order has been fulfilled, or a specific amount of time has elapsed and the rent is due. Contract payments are made automatically and immediately when the parties agree that a condition has been satisfied.
Can your company use such a tool today? Digismart can help.
NFTs (Non-Fungible Tokens)
NFTs are a direct result of the blockchain’s decentralized nature. It’s now possible for companies to put assets they possess on the blockchain and then trade those assets.
For example, a property developer may register their land on the blockchain, creating a public record of who owns the land. In addition, each time that land is sold, the transaction would be recorded on the blockchain for future generations to see.
This procedure makes things significantly more accessible and eliminates any chance of a dispute about ownership.
There Will Be Less Intermediaries
In the absence of trust in a commercial process, intermediaries may not be necessary.
Go-betweens’ primary role is to mediate between the parties involved in a transaction.
As a result, middlemen such as title companies and escrow agents, who act as adjudicators of the truth, will be essentially obsolete. As a result of this, the role of intermediaries such as business brokers and loan generators, which ease deal-making, becomes even more critical.
Reach a Worldwide Audience
Cryptocurrencies have become global currencies. Multi-currency transactions are no longer necessary, allowing enterprises to sell across borders without paying the costs associated with them. Customers from countries that limit the use of their own currency can buy directly using crypto.
What to look for in blockchain vendors?
Checks on criminal records
More commonplace data can also be stored on the blockchain and applied to background checks. For example, colleges may exchange graduates’ degrees, and firms can communicate workers’ job titles and employment dates with one other.
This allows for an open and clear verification of data given by job candidates, potential suppliers, partners, and even clients. Verified data can help businesses make smart recruiting, partnership, and collaboration decisions.
When it comes to the blockchain and corporate operations, these advantages are merely the tip of the iceberg.
It’s just a matter of time until the blockchain transforms the way we do business and generates new applications for the technology.