If you’ve gone this long without ever hearing about cryptocurrency or blockchain technology, then you’re probably living under a rock—or at least living without social media. In case you aren’t familiar with what they are, cryptocurrency is a digital coin or token that can be used in place of cash or to facilitate other transactions. Blockchain technology is the system that facilitates these transactions. Blockchain is a decentralized digital ledger that records cryptocurrency and other transactions, but its applications go far beyond that. Today, it is being used in a wide variety of industries, performing an even wider array of functions.
What You Need to Know and How Blockchain can Help Your Small Business
Blockchain is changing businesses all around the world in every industry you can think of. Because of its potential for application in so many different situations, many businesses are adopting it and enjoying the benefits. Small businesses can benefit from the application of blockchain technology, and if you haven’t considered implementing it in your own business, here are a few reasons you should:
● Blockchain provides transparency. Blockchain is a digital ledger that records transactions chronologically and securely so they cannot be altered or changed, but the ledger can be published and shared with everyone for all to see. Transactions are recorded automatically, so there’s no need to enter information manually.
What this means for your business is that all parties involved can have access to the ledger, which allows for everyone to keep track of previous and current transactions and eliminates the possibility of any confusion or misunderstanding.
● You can use blockchain to raise money. Many companies have begun using initial coin offerings (ICOs) as a way to raise money to fund their businesses and projects. ICOs are a type of crowdfunding that use cryptocurrency instead of cash and use the blockchain to record transactions. If you need extra capital, ICOs and blockchain could help you raise what you need to keep going or take the next step.
● You can use blockchain to send and receive money. Not only can blockchain be used to raise money, like through ICOs, but it can be used to send and receive money as well. You can use it to accept payments from clients or to send payments to vendors for any invoices you have unpaid. Again, since blockchain securely records transactions and offers transparency, sending and receiving money that way can help eliminate any lost or missed payments.
● Blockchain offers security. Although blockchain offers transparency, it also offers security. Transactions are not only securely and chronologically stored, but they can be stored cryptographically as well. This means that with blockchain, you can keep payment information, employee records, patient records, etc. stored safely in electronic files unauthorized individuals can’t access.
If someone were to access the files without authorization, the blockchain would record the transaction so you would be able to see the breach and take necessary action.
● You can use blockchain to automate contracts. Smart contracts are powered by blockchain and can be used to automatically carry out a contract, enforce terms, and issue the penalty if breached (for example, automatically transferring funds from one person to the other if one party violates a section of the agreement). This makes contracts easier to enforce since it eliminates the need for mediators and potentially court should one party try to dispute the terms of the contract.
Examples of Businesses Already Using Blockchain
As mentioned, many businesses from all different industries are taking advantages of the benefits of blockchain. Some businesses have even put blockchain to use within their products and services. Here are a few examples of businesses that are already using blockchain:
ImpactPPA – ImpactPPA is a company that is using blockchain to provide energy solutions to underserved and impoverished countries and communities throughout the world. Their blockchain-based platform is enabling them to get clean, consumable energy to those in need.
Boon Tech – Boon Tech is using blockchain to revolutionize the job marketplace. They are using AI and blockchain to power a decentralized job marketplace that will include an intelligent review system to predict personality, needs, values, etc. and create a better job marketplace for employees and employers.
Deedcoin – Deedcoin is a blockchain-based real estate company working to connect agents with sellers and buyers, and eliminate the high commission fees of agents to help both buyers and sellers save money when buying a house.
Will You Use Blockchain?
Whether you want to launch a blockchain-based business or simply want to incorporate blockchain into your operations, you’ll undoubtedly benefit from the power blockchain offers.
If you have any additional questions about ways you can incorporate the latest technology into your business, don’t hesitate to reach out to our Funding Specialists at Currency. We’re always available for a call at 877-358-4595, and would love to answer your questions and guide you toward the best tech option for your business.