PaymentsOne of the most common benefits of blockchain technology is the ability to use it for payments and money transfers. Small businesses deal with clients from different parts of the world on a daily basis. Traditional money exchange systems can be expensive and time-consuming.
With blockchain, they can make payment in seconds and receive money from any part of the world. This feature is more advantageous for people who operate their businesses in the global marketplace and have to pay employees, suppliers and merchants in different parts of the world. Offering a quick and easy payment system can potentially increase business transactions, attract more customers and help businesses grow beyond imagination.
Smart contractsInternet transactions have always had the issue of trust as a diminishing factor. With the smart contract technology integrated into the blockchain, that will soon be a thing of the past. Small businesses can grow their sales and profit by providing a system where customers trust they will always get a fair deal. The smart contract is a computer programme designed with certain codes that define the terms of a transaction by unlocking a smart lock after both parties have agreed to the terms. The system cannot be rigged or manipulated and is free from third party interference, downtime and fraud.
Digital identitySmall businesses are often the target of Internet fraud and security breaches, largely because of the lack of resources to set up expensive security programmes. Blockchain makes use of authentication systems, instead of the porous password-based system that stores data in an unsecured system, to track and manage digital identities. These signatures can never be compromised because they are based on public key cryptography, and there is no other way to validate identity unless through the use of the correct private key. Blockchain technology will also benefit small businesses by providing efficient compliance management and monitoring, offering rapid onboarding, improving customer experience, and encouraging standardised process.
Commercial insurance for small businessesEvery small business needs insurance to gain the trust of customers, provide services without fear, and create a backup plan. But insurance can be expensive due to its unpredictability, which is caused by human errors. Blockchain technology is being integrated into the insurance industry and its processes and products offering because of its ability to reduce risk and human errors, and at the same time provide a safe and efficient platform for business insurance quotes contracts.
Blockchain brings efficiency, trust, and security to the Internet, and the insurance sector is making every effort to take advantage of these factors to improve commercial insurance delivery to small businesses.
Raising capital for business
Crowdfunding is used all over the world by startups to raise funds and offer loyalists perks once their product is released. Blockchain helps to take this concept further by providing a means by which people can support your crowdfunding campaign without paying fees. You can also raise funds locked into contracts regarding profit-sharing or funding-based revenue sharing, without employing traditional financiers. Blockchain technology is a revolutionary system that has come to stay. By providing an efficient and safe system to make transactions, small businesses can reduce costs, provide better customer service, and offer smart contracts that can be trusted by all parties.
Jenn Livingston is a US-based freelance writer who works primarily with small businesses. She loves to help other people solve problems in the workplace, and enjoys reading and exercising in her spare time.
This article appeared in the October 2017 issue of HR Future magazine.