How Small Businesses Can Benefit From Blockchain

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Many sectors stand to benefit from the blockchain technology which has been viewed by some as having more transformative potential than even the internet. In this regard small business blockchain will be no exception as many areas of their operations will be positively impacted by blockchain technology. This includes payments, business promotion programs, contracts, security, and so on.
With regards to payments for instance blockchain technology will reduce costs of sending and receiving money while at the same time making such transactions more secure. And because there are no middlemen involved in these transactions the speed of transfers is expected to be fast. For small businesses this will be especially beneficial where there are employees working remotely.

Smart contracts

The small business blockchain will benefit in a respect that how they handle and enforce agreements. This will be made possible by smart contracts which are basically self-automated applications designed to ensure contract terms are carried out. Smart contracts will consequently enable small businesses to bypass regulations and this will obviously lower the cost of doing business.
Blockchain technology will also make it possible for distributed cloud storage applications to flourish. With distributed cloud storage individuals and organizations will be able to rent out their excess hard drive capacity just like they would rent out their homes on Airbnb. This will increase the size and capacity of the cloud by hundreds of times. This will make cloud storage services more affordable for small businesses as well as offering a new revenue stream for the small businesses that rent out their excess storage capacity.

Reducing fraud

Fraud increases the cost of doing business significantly and this makes security a big concern for both small and big enterprises. Small Business Blockchain? can make a contribution in this arena as they make the tracking and management of digital identities efficient and secure thus reducing fraud. So far password-based authentication systems have proved to be susceptible to security vulnerabilities but the blockchain technology offers the promise of authentication systems that are not only secure but immutable and irrefutable. This is because with regards to identity authentication that is based on the blockchain technology, for a transaction to be approved it has to be signed by the rightful private key and not any other.
In order to attract new customers as well as retain the existing ones small businesses have to employ various strategies such as loyalty programs. Blockchain technology could come in handy with regards to this since it can be used to make loyalty programs more secure and cheaper by leaving out intermediaries and employing the unique verification capabilities of the technology.
The blockchain technology will also assist small businesses with regards to how they obtain funding. Typically small businesses usually suffer from lack of funding as traditional financial institutions might not be willing to take the risk of lending to them and even when they do the process is highly bureaucratic. With the blockchain technology small businesses can issue tokens and the better a firm performs the greater the appreciation in the value of the token.

Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at news@dippli.com.

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