There is a perfect chance to create and establish a community for entrepreneurs who are prepared to move quickly and adopt the “plant the flag” method before the market is overrun with Blockchain for startups.
In an era where thousands of companies are competing for the same market share, investing time and resources into developing a business model with Blockchain at the core of the processes or even a major part of the working mechanism will automatically give startups an edge over others working in the same domain.
Can Digital Systems Replace Outdated Processes
Many startups use some sort of legacy software or out-of-date infrastructure, which not only raises the expense of doing business but also makes them extremely ineffective and inconsistent. Additionally, a significant portion of crucial operations is manual in nature, which greatly increases the danger of human mistakes.
Startups will be able to address many of these problems with the help of Blockchain for small enterprises. The ability of the technology to decentralize the pool of data divided among numerous distinct processes eliminates the need for startups to rely on manual labour for data collection and processing.
Able to protect their data
Businesses of all sizes and in a variety of sectors are concerned about cybersecurity. In the next five years, it is predicted that the global spending on cyber security-based services and products, such as automation and IoT, would climb by $1 trillion.
A major reason why businesses use Blockchain is due to the incredible security proof that Blockchain systems offer. As a result, they are expected to quickly replace other methods for collecting and organizing enterprise data.
The most cutting-edge cryptographic techniques are automatically used to encrypt all the data collected in the ledger, and the warehouses are only available using a key-value mechanism that verifies and approves identification before providing access.
Additionally, the decentralized nature of Blockchain technology for small businesses greatly decreases the security risk. It is impossible for hackers to change the data without notifying everyone in the network because the distributed system cannot be manipulated by a single entity. This safeguards against corruption and returns control to the actual users.
After seeing how Blockchain can improve your startup’s efficiency, let’s examine how you can use the technology to grow your company’s productivity, transparency, and decentralization.
Here are a few of the most popular uses of blockchain in business:
Paying and transferring money
Using technology for payments and money transfers is one of the most typical ways that startups use blockchain. The current narrative is that Blockchain is prepared to alter transactions and that entrepreneurs regularly work with a variety of vendors around the globe to access low-cost, high-quality services. Cross-border payments can be made more easily and inexpensively with blockchain thanks to its cryptocurrency component than with traditional payment methods, which are hampered by large transfer fees.
Contracts are made and adhered
With your interior designers, your food and beverage vendor, your offshore software development business, and a number of other third-party stakeholders, you will need to enter into a number of contracts as you are just getting started.
With so many contracts to be created and ensured to be adhered to, using blockchain in business, namely through Smart Contracts, can be quite helpful. We won’t go into great detail regarding the mechanism here because we have previously covered it in our Smart Contract tutorial, but what we can tell you about Contracts and Blockchain is that it is impossible for any of the parties involved to break the Smart Contract.
Cloud storage that is dispersed
Solutions for peer-to-peer, decentralized cloud storage make up distributed cloud storage. Decentralized cloud storage renders your files unhackable and Blockchain a valuable component of your startup by utilizing encryption and Blockchain to protect the files on both the transmission and in nodes.
Digital Identity Protection
Identity Management is a key way that blockchain is used in business. In this situation, blockchain can be a platform for protecting identities against fraud. Businesses can use the technology to manage the authentication and reconciliation issues that various industries encounter. Additionally, it gives companies the option to create encrypted digital identities that exchange usernames and pin codes for extensive security features that can protect the institutions and their customers.
Supply chain management
When it comes to the Supply Chain Management process, there are a variety of ways that Blockchain may be applied in a company to improve its real-time, accessibility, transparency, and efficiency. A few important ways have been mentioned below.
Tracking of provenance- Due to the ease of access to the product information provided by RFID tags and integrated sensors, provenance tracing and record keeping in the blockchain-powered supply chain management process become quite simple. Blockchain enables the tracking of a product’s entire history, from its creation to its current state. Additionally, provenance tracking can be utilized to identify fraud in any aspect of the supply chain.
Cost cutting- Blockchain can speed up administrative procedures in the supply chain, which automatically lowers additional expenses while ensuring the security of all transactions.
Second, removing middlemen and intermediates from the supply chain reduces the likelihood of product duplication and fraud while also saving them a significant amount of money.
In the supply chain, suppliers and buyers might even execute payments using cryptocurrency rather than depending on EDI.
Developing Trust- For effective operations in complex supply chains with numerous actors, trust is essential. For instance, a manufacturer should be able to rely on suppliers to uphold factory safety standards when sharing their products with them.
Additionally, trust is important when it comes to regulating compliances, such as custom enforcers. The primary use of blockchain in business is to establish trust because of its immutable nature, which is well-designed to avoid tampering and establish trust in the supply chain.
Promotion and Advertising
Even though all sizes of organizations require advertising, startups who are just getting started and in need of market visibility cannot ignore this need.
Even though it is one of the most crucial components of a business, the advertising industry has many flaws that make it prohibitively expensive and confusing for startups.