The impact of Blockchain on small and medium businesses is a hot topic that has sparked widespread interest. SMEs account for 40% of global GDP, according to the World Bank. Because it accounts for such a huge percentage of the economy's increasing pie, we can't disregard its importance or the influence that Blockchain and cryptocurrencies will have.
Blockchain technology's fundamentals
Blockchain has a wide range of uses due to the benefits it may give to organisations. It has several distinct characteristics, including:
- Purposefulness
- Power decentralisation
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- The unexpected factor
- Data security
The advantages and significance of these characteristics are not limited to giant firms; small businesses can profit considerably from them as well. Let's have a look at a few of the benefits:
- Transparency- Every company, large or small, must keep its operations accessible to the public. They must guarantee that all stakeholders and customers are aware of how their company operates and whether the money they invest is being used appropriately. Customers expect to get the most bang for their buck. They should be able to back up their pricing with the products or services they're buying. With transparency and traceability capabilities, businesses may ensure complete openness in the system, resulting in enhanced confidence.
- Decentralization- Information is centralised in the old system, which is a big issue. It means that all information is controlled by a central authority or server. It basically means that if the data on the central server is gone, the remainder of the company's operations will suffer. This is not the case with Blockchain. It's a distributed ledger system that allows people to share data over a network. As a result, information is now available to everyone.
- Data security- While data digitization has improved productivity, it has also made critical places more vulnerable to hackers. Data breaches and data threats are two of the most common problems. To prevent this, we need a system that provides complete data security, and Blockchain is a critical component of such system. All of the entries in the DLT are cryptographically encrypted. Additional data time-stamping improves data security even more. When all of this is taken into account, Blockchain appears to be the best option.
To get directly to the point, why do small businesses need technology in the first place? Whether they are a little business or a startup, they have a certain amount of capital. Unlike large corporations that invest heavily in security systems, SMEs do not have access to sophisticated security systems. As a result, they have quick access to the data they require. Companies, on the other hand, can use Blockchain technology to develop the safest security solution for their business.
Last but not least, there are a few things to think about.
The advantages of Blockchain and bitcoin go beyond making more money; they also include building a great system. Now is the moment to contact the Blockchain Council if you want to learn more about Blockchain technology.