As a startup or small or medium-sized business, you will have your fair share of challenges. Often the answer to most of the challenges you face lies in the adoption of the right technology. However, as a smaller business with limited resources, you may have limited information on what a particular technology can do for your business and how much it costs.
To help you make the best decision in this regard, we have created a series of growth resources that will guide you in the right direction. In this article, we will look at blockchain technology and the advantages of using it.
What is blockchain technology?
Blockchain is a technology that records information in a way that makes it extremely difficult to modify, hack, or access by cheating the system. Blockchain in essence, forms a digital ledger that records transactions, which then are duplicated and spread across a network of systems within the blockchain. The blockchain database retains blocks of data, linked together like a chain.
With blockchain, you can create and maintain a secure but decentralized record of secret transactions that have taken place. With blockchain, you can be assured of the fidelity of the data and the security. Blockchain makes it impossible to remove or replace data that has been recorded.
If you are a small business that deals with data that needs to be recorded in a manner that is secure and irreplaceable.
What are the advantages of blockchain?
The use of blockchain technology offers many benefits, which include:
- It helps ensure that the trust between transacting parties is maintained by mitigating security breach concerns
- The use of blockchain allows the sharing of data between entities that do not know each other as the control does not lie with a single entity
- You can leverage blockchain to reduce costs related to the processing of transactions with the reduction of middlemen, lesser dependence on clearing and settlement entities
- With blockchain, another positive aspect is the speed of transactions without compromising on security
- It also helps improve traceability and the visibility of transactions and this is especially useful for quality control purposes
- The unchangeable nature of data within blockchain reduces the possibility of fraud or misuse
- The use of blockchain allows the individual who owns the data unlimited control making it a preferred technology
How does blockchain help startups?
When it comes to smaller businesses or startups, here are some specific uses that blockchain technology can be put to.
A payment option
The first thing that you need to understand is that blockchain technology can be used to make and receive payments like the digital rupee. And given the way, small businesses in tier 2 and tier 3 cities have issues with the adoption of digital payment methods, this could be a way out. It is often felt that blockchain is linked to cryptocurrency, and while it is, it is also going to be used for protecting transactions that will use the digital rupee.
Secure and affordable cloud storage
Today’s businesses are no longer limited by geographies and therefore, access to data on the move has become the norm rather than the exception. However, many smaller companies hesitate to move their data to the cloud due to cost and security concerns. However, blockchain will provide you relief in both these aspects by ensuring economical and safe cloud storage.
With the use of blockchain, any contract that is stored cannot be manipulated or changed. As a result, contracts become self-verifying and self-enforcing, eliminating the need for a third party like an attorney to be involved in the process.
A way to raise capital
Though a bit unusual, you can use blockchain technology to raise capital with the use of Initial Token Offerings (TKO). The best aspect of TKOs is that they can be exchanged, traded, or transferred pretty much like shares in a company.
Whether it is easy-to-use technology for your financial needs or a line of credit, EnKash has it all. As Asia’s 1st and smartest spend management platform, we offer end-to-end financial solutions to help up your game.