Blockchain has become a hot topic in the past few years, with industries of all kinds planning to implement the technology. Most notably, cryptocurrency companies, specifically Bitcoin, have taken full advantage of the many benefits of blockchain. However, blockchain technology can be used by small business as well as large enterprises.
Small businesses can also benefit from blockchain implementation. In fact, with blockchain, the playing field between small, medium, and large businesses becomes much more even. Here are five reasons why blockchain can help small businesses.
Scaling
Small businesses often have to focus solely on scaling, which can bottleneck their flow. Without additional attention given to the peripheral processes, like invoicing, inventory, and payroll, progress is delayed.
With blockchain, additional processes like those mentioned above can be automated. Whether through smart contracts or another automation method, small businesses can focus on scaling as those processes are handled.
Smart Contracts
Smart contracts are one of the most important features of blockchain. They use the technology to create, check, and enforce contracts. Certain actions are automatically executed once the terms of the contract have been fulfilled. A process that used to be time-consuming and slow can now be streamlined.
Small businesses can use smart contracts for external and internal transactions. Companies can ensure a more consistent flow of income, and activities like invoicing, closing new deals, and settling interest fees can be handled automatically.
If businesses know exactly when funds will be released, whether to or from them, they can deliver services knowing precisely how much money is available to them. They will not have to worry about late payments or unfulfilled contracts.
Security
Security is a major concern for businesses of all sizes. However, smaller companies can be more vulnerable and have fewer resources to address security breaches.
Blockchain is an incredibly secure system. Its decentralized nature makes it difficult to hack. Hackers must access every computer on the network and piece together the data in order to obtain information.
Clients are more likely to work with businesses that can guarantee high levels of security as well. Businesses that use blockchain technology can offer their clients a secure environment for their information.
Final Thoughts
The implementation of blockchain technology can help more than just major organizations. Blockchain’s many benefits can be applied to businesses of all sizes and industries.
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