5 stunning applications of blockchain in small businesses

Recently, small businesses are adding the application of blockchain to their list of “must haves to succeed”. And it’s not for nothing!

To most of us, blockchain technology is familiar in the form of the digital currency, Bitcoin. However, blockchain continues to make headlines with business leaders talking about this technology’s huge potential beyond financial transactions and cryptocurrencies. What makes small businesses an interesting use case for application of blockchain are their unique needs, targets, and challenges. While the scope for blockchain in small businesses is vast, shared below are five of the most stunning applications.

1. Smart Contracts

Smart contracts are computer programs that can automate many different kinds of processes and operations, the most common being payments and actionable conditions on payment. A small business can easily bypass a web of complex regulations and costs for some of the most common financial transactions. Smart contracts eliminate the need to rely on a lawyer, broker, or other intermediaries. The execution of contract is transparent (thanks to blockchain as the underlying network) and cannot be manipulated by any or all of the involved parties. Since these contracts are automated, they are not only faster and cheaper, but also more accurate than manual filing of forms. Cryptography used to encrypt these contracts keeps your documents and business safe.

2. Decentralized cloud storage

Cloud storage, which enable remote maintenance, management, and back up of data, allows users to access files from any location via the Internet. Right from usability, accessibility, cost savings, to data security and bandwidth, the advantages of cloud storage for businesses are many. However, most cloud storage providers are centralized, giving them control of your digital assets. Besides, most businesses end up purchasing expensive monthly plans for storage they’re not using. Blockchain elegantly solves these challenges by decentralizing cloud storage. Since the data is distributed redundantly, blockchain-enabled cloud storage offers an option that’s safe, fast, and cost-effective; what else can a business possibly ask for?

3. Digital identity

Approximately 43% of cyber attacks target small businesses. No wonder, security is a top concern for them. This is why knowing whom you’re dealing with is essential when using any form of electronic communication. A business may require an identity assurance for commercial enterprises, such as online banking and trading, digital form signing, process automation, and e-commerce. Blockchain has the power to track and manage digital identities, securely and efficiently. Based on public key cryptography, blockchain offers digital signatures that ensure irrefutable identities. Only the correct private key can validate an identity.

4. Supply-chain communication

Most products that we buy aren’t made of a single entity. They are the result of assembling several components, sold by a chain of suppliers to the company that finally markets the end product. The issue with this system is that if one of these components fails, it is the final branding that suffers. Blockchain technology can provide a company digitally permanent, auditable records that allow stakeholders to keep track of the product at each step of value addition.

5. Networking IoT

The potential of IoT to deliver benefits to small businesses is immense. The connectivity it offers between humans and machines improves the agility, collaboration, and knowledge sharing in an organization. With IoT business owners can set up offices wherever they like, hire employees remotely, make their operations more secure, and ultimately generate more revenues. The only glitch here is the security concern around IoT. Blockchain vanquishes this issue. Besides, it creates a central hub where all IoT devices can not only communicate with each other but also will also be managed and updated automatically.

While the above applications do sound promising, a business would need to prepare well before adopting them. You may need to spend some time understanding the technology, recruit new staff, contact vendors, hold conversations with industry peers, and analyze the scalability of your existing infrastructure. However, at the end of all this toil, the rewards from blockchain in your business will be truly satisfying.