Most people know blockchain through cryptocurrencies. However, it impacts more than just digital currencies when it comes to how far it can disrupt the normal way of doing things. Since Bitcoin was created in 2009, experts in the technology have explored many ways through which it can be applied in multiple industries. For entrepreneurs, it has provided a new wave where they can apply blockchain ideas in their businesses. According to IBC Group, few of those application ideas include:
The one thing that makes it difficult to start a business is limited capital. With the blockchain technology, startups can raise capital without the need to go over the many hurdles by launching an initial coin offering (ICO). It is a kind of online crowd-sale where an entrepreneur will tokenize his or her startup product and sell those tokens to investors in order to raise capital. All this takes place digitally, which saves the time and the hustle of raising capital.
Elimination of fraud and high costs of transactions
Blockchain plays the role of eliminating middlemen when processing transactions. This not only translates to lower costs of transactions, but also eliminates fraud. The more you have middlemen between the business and the customer, the more the chances of fraud and the higher the transaction costs.
They are programs where logistics, terms, and conditions of a contract are predetermined. Smart contracts can thus execute those terms and conditions on its own. Since it is on the blockchain network, the details of that contract cannot be altered or face downtime, which eliminates fraud and 3rd party interference.
Distributed cloud storage
It offers a way for businesses to securely store their data in a distributed cloud storage space. It is less costly and data stored in this manner will not be tampered with or accessed by unauthorized persons. You save on the space and also data will be easily retrievable even when there is a power outage.
It will be easy for a business to track sales, purchases, costs, and items back to the source. In the case of supply chain management, it can be difficult to track an item back to a specific supply among your multiple suppliers. With blockchain, this will be easy, which will save on the cost of auditing, fraud and inaccurate data. It will also help to streamline your accounting practices and hence introduce seamless cash flow in your business.
Validating a startup idea
It has never been easy starting a business. There are a lot of legal procedures which you have to satisfy before your startup can be up and running. For example, you will need to register your business and take care of all the paperwork to make it legal. Luckily, blockchain makes the life of an entrepreneur easier. Once you create a token for your startup project, you can create a crypto wallet and start receiving payments from customers.
The blockchain hype is taking over and big corporations, including banks, are greatly embracing the idea for survival.