Bitcoin is one of the trending words at this moment. Bitcoin is one of the most popular cryptocurrencies / digital currencies and is powered by blockchain technology. Blockchain is a transparent mechanism and has a much more extensive use beyond Bitcoin.

So, what is blockchain?

A blockchain is a form of digital ledger consisting of ‘blocks’ of information. Each ‘block’ contains a record of the transactions that occur within a network. In the case of Bitcoin, those transactions are typically movements of digital currency to facilitate payments. Once a predetermined number of transactions are recorded, that ‘block’ of information is added to the ledger, thus forming a ‘chain of blocks’, hence the term blockchain.

Blockchain technology is often compared to the internet of the early 1990s due to its disruptive potential. Blockchain technology can lead to new opportunities and benefit businesses through superior transparency, greater security, and easier traceability. Blockchain technology is not just only limited to the exchange of cryptocurrencies. The distributed and decentralized nature of blockchain can present to businesses and startups several growth opportunities in many different industries:

Here’s our take on how blockchain technology can be used for your business :

Processing Payment

Conventional international payments processing requires documentation, insurance issuance, and validation and contracts. All of these steps are performed on sluggish legacy systems that reduce operational efficiency. Supplier sometimes waits up to a year before they receive the payment for international delivery. Such delay results in high receivables and lowered profitability. By digitalizing and implementing blockchain solutions, businesses can reduce dependency on several IT solutions. Blockchain can offer contract management transparency and, at the same time, handle payments in real time. The best part of it all is that businesses don’t have to build it up from the ground. There are existing solutions such as the IBM blockchain that can be implemented right-a-way.

Selling Voucher / Tickets

Apart from using blockchain technology to improve the processing of payment, blockchain can help businesses in sectors such as tech, and event management.  Paper or conventional electronic tickets are victims of duplication and fraud. Especially in the times of covid-19 pandemic, we are attending many events virtually. These online event trends are here to stay and the experience of the attendees can be enhanced through the introduction of blockchain-based smart tickets or vouchers.

For example, the Crypto.tickets platform used blockchain technology to sell tickets in a safe, manageable, and scam-free environment. Using blockchain ensures that data remains private, transparency is assured, and transactions remain fair. Each ticket has its unique identifier, which is generated using a special encryption algorithm we have developed, and thus it guarantees that the ticket cannot be counterfeited.

Business Process Improvement

Blockchain technology improves the efficiency of business functions and at the same time immensely improves business processes. Answers to many business challenges and problems such as efficient accounting systems, eliminating the middleman, or seamless sharing of data can be provided through the implementation of blockchain technology.

Traders, particularly SMEs, who traditionally did not have access to bank guarantees, invoice financing and credit insurance, can use blockchain platforms such as we.trade to enhance their cash flow and digitise their existing paper-based processes.  We.trade’s technology is currently licensed by 16 banks across 15 countries to address challenges such as the late payment of invoices, cyber fraud and where pre-payments are requested by sellers. Applying such readily available solutions can give business additional competitive advantages within the industry.

Attracting New Audiences

One of the major benefits of blockchain technology is its global reach. The decentralized nature of blockchain allows a chance to expand the audience and market at the same time. The current, market is dependent on monopolistic payment processing networks such as Visa, MasterCard or regional solutions. High commission fees, currency conversion rates and access to international credit/debit cards can be bottlenecks to avail your product and service for international customers. The new businesses and startups don’t usually have access to large markets like their corporate counterparts. Excellent products or services offered by your businesses can be missed merely because people don’t have the proper access. With blockchain technology, you have a chance to expand your audience as it allows you to target global markets and offer them smooth transactions without any hassle. Accepting Bitcoin, Litecoin, Ripple, Dash etc can give you the advantage of attracting new tech-driven customers for your business

For example, alternative airlines customers can purchase flights from 600 global airlines using a range of cryptocurrencies.

Increasing Online Security

SME’s and startups are a more vulnerable target for hackers, scammers, and fraudsters. Unlike big corporate giants, small businesses don’t have a high budget for a high level of cybersecurity. Blockchain technology can improve cybersecurity and stop personal data breaches through effective encryption.

There are the vast bulk of websites and ads that include software that tries to identify you and steal your data. They want to track your every move across the web. Blockchain-based browser Brave blocks all this, allowing you to browse freely and at the same time, you can earn 70% of the ad revenue through BAT cryptocurrency from advertisers if you choose to view advertisements.

Improve Product Authenticity

Blockchain technology can help companies deal with fair-traded products. The consumer is more and more aware of the injustices of conventional trade, which traditionally discriminate against the most vulnerable. Fairtrade ensures fair prices, living wages and community benefits for farmers, workers and their families in developing countries. Implementing blockchain technology can allow your customer to discover the entire supply chain, track their products, verify their brand promises and learn the honest product story.

For example, the blockchain-based platform Trace by Fairfood allows customers insights about these transactions and the traceability of the product.

Making Fundraising Quicker

Fundraising is one of the most crucial business goals for cash-strapped startups. Blockchain can provide access to startups with a decent amount of capital from all over the world. Blockchain makes it easier, cheaper, and quicker for companies to raise funds. The self-verifying nature of blockchain technology can gain funding within minutes within the right environment.

Open source crowdfunding platform built on Ethereum can provide reliable, traceable crowdfunding for small businesses and startups.

Blockchain technology is not a trend, but rather a disruptive improvement possibility for existing business processes and functions. Implementing blockchain technology and adapting to cryptocurrencies will enable the business to gain a competitive advantage and reach new heights of success.

If you have brilliant ideas on how businesses can benefit from using blockchain technology, please let us know in the comment section or via our contact form.