What Blockchain Technology is being utilized by Startups?
Blockchain technology was first introduced with the rise of cryptocurrency however, it was first mentioned in 1991. This is the technology behind Bitcoin’s story of success. “Blockchain” is now the standard term for numerous startups within the IT industry however, more and more entrepreneurs from other industries are discovering its benefits of it. When its benefits are obvious, it’s accessible to anyone with the knowledge to use it in their business.
Thus, banking isn’t the only one that is using blockchain technology, and a number of companies are beginning to incorporate blockchain technology into their applications.
What are the benefits of Blockchain being able to do for Your Startups?
Could make you early adopters
Similar to the beginning years of the Internet and the Internet of Things, Blockchain is no different. The blockchain world is not developed in a significant way. There are many important elements that will need to be dealt with prior to Blockchain becoming a common phenomenon.
If you are a startup that is willing to move fast and adopt the “planting the flag approach it is a great chance to create and develop communities before the market gets too crowded with Blockchain commercial applications.
In the event that you invest time and effort to create a business model that incorporates Blockchain at the heart of the business process, or perhaps an integral element of the process it will give startups an advantage over competitors in the same area – something every startup needs in an age in which there are many businesses operating in the same field and all fighting for the same share of the market.
Could Replace Antiquated Methods with Digital Systems
Many startups run on one or the other version of the old system or software that not only raises the costs of running a business but also renders them inefficient and unreliable in a large way. Furthermore, the majority of crucial processes are manual and are therefore subject to the possibility of human error to a huge degree.
With Blockchain for small-sized enterprises, entrepreneurs can tackle many of these problems. Blockchain technology has been known to disperse the data that is sifted through a vast variety of processes – which solves startups’ need to rely on manual work to collect and analyze data.
Are They able to protect their data
Cybersecurity is a major area that concerns companies of all sizes and across sectors. The world’s expenditure on cybersecurity-related products and services like IoT and automation is expected to grow by $1 Trillion in the next five years.
With the impressive security features that Blockchain systems provide They are set to become the standard method of storing and organizing information from enterprises. It could also be an answer to the question of why businesses make use of Blockchain.
The data that is gathered into the ledger is automatically encrypted using the latest and most advanced techniques for cryptography. The warehouses are accessible only via a key-value mechanism that confirms and authorizes the identification prior to providing access.
Furthermore, the decentralized nature of Blockchain for small businesses reduces the risk of security significantly. Since the distributed system can’t be altered by any one person, it’s virtually difficult for hackers to alter the information without notifying everyone on the network. This safeguards against corruption and gives the control back to actual users.
If you’ve got a sense of the ways that Blockchain can help make your business more efficient, let’s examine the ways that you can utilize the technology within your startup to make your company more efficient, transparent and decentralized. The answer is similar to the one for why companies use Blockchain.
Methods that Blockchain for Small Businesses can be used to improve Processes
Here are a few of the most effective applications for Blockchain for your business
Transfer of money and payment
The most frequent use for Blockchain in a start-up is found in the use of technology in the payment and transfer area.
The latest news can be said to mean it is that Blockchain is poised to revolutionize the way transactions are conducted and startups have been known to work with numerous suppliers across the globe to provide low-cost, high-quality services. Blockchain, with its cryptocurrency component, can be useful in making payments across borders simpler and more efficient than the conventional methods of payment that are slowed by the fees for transfers.
Create and Renew Contracts
When you’re just beginning with your new venture, there are plenty of agreements you’ll need to enter into along in conjunction with interior design firms as well as your food and beverage supplier as well as the offshore development firm and many other third-party stakeholders.
With the number of contracts that need to be drafted and to be adhered to, the using Blockchain for business is extremely beneficial via its Smart Contract route. We’ve already spoken about the idea within our Smart Contract guide earlier, we won’t go too deep into the mechanism however, what we can say about Contracts as well as Blockchain is that it’s impossible for any participants to breach this Smart Contract.
Distributed cloud storage
A distributed cloud-storage solution is based built around peer-to-peer decentralized cloud storage. Through the use of cryptography with Blockchain to safeguard your files in both nodes and transmission the cloud storage is decentralized, making your files inaccessible to hackers and Blockchain is a valuable component of your business.
In plain English, the distributed cloud storage becomes operational when every component of the cloud storage system, including processing transportation, storage, and processing of data is added to the blockchain system. When that happens, all data, including how it was moved and who was able to access it and the way it was managed is accessible to anyone who has access through the Blockchain. This type of system can provide total accountability, traceability and transparency for the cloud and other entities that are operating or using the cloud.
Protection of Digital Identity
Another major application for Blockchain for businesses includes Identity Management.
Identity management is a problem that everyone suffers from. Whatever business or size of team you are part of it is never secure from having your personal information exposed on the internet, and in the worst-case scenario at the hands of hackers.
For startup companies, it is the case that they – in an attempt to achieve success and efficiency join and sign up to numerous websites that, in certain instances may be malicious.
Blockchain as it is known can serve as an identity protection platform that can shield identities from fraud. Blockchain technology can assist businesses to tackle the challenges in reconciliation as well as authentication that are faced by various industries. Furthermore, it provides businesses with the ability to create encrypted digital IDs that substitute pin codes and usernames with a full set of security features which can save institutions as well as their clients their valuable time and resources.
Supply Chain Management
There are a variety of various methods Blockchain can be utilized in businesses in Supply Chain Management. Supply Chain Management process, to make it more timely easy to access, transparent, and effective. Below are some of the various applications for Blockchain for SCM.
With the help of the process of supply chain management using blockchain technology process the tracking of provenance and records are made easy because the information about the product can be easily obtained via RFID tags and sensors embedded in the product. Everything related to the product all the way from its creation to its current state can be tracked using Blockchain. Additionally, the traceability tracking of provenance can be used to identify fraud at any point in the supply chain.
If Blockchain is utilized in supply chain processes to speed the administration process and reduce costs, the extra cost that occurs in the system is instantly reduced because the transaction’s security is ensured. Additionally, eliminating middlemen and intermediaries in the supply chain decreases the chance of duplications or fraud, and also saves these companies a great deal of cash. Payments made could be processed by customers and suppliers in the supply chain using cryptocurrency instead of using EDI.
Being able to trust complex supply chains that have many participants is essential for smooth operation. For instance, if an individual manufacturer shares its product with other suppliers they must be able to rely on them to follow the safety requirements of the factory. In addition with regards to regulatory compliance, like custom enforcers trust plays an essential part. The inflexibility that is blockchain throughout the supply chain is designed to prevent tampering and to establish trust, which is the primary purpose of Blockchain within the business.
Excellent Customer Support
There are two methods by which Blockchain can be utilized in Business to enhance the level of customer service.
Data Cleansing It’s not just due to inadequate data import tools or inattention the CRM professionals all over the globe must confront duplicate or inaccurate data at some point. With blockchain, the customer will have their own individual block which gives companies an accurate and complete image of their personal data such as past transactions, subscriptions and so on. Therefore, blockchain can help these companies avoid inaccurate, obsolete, and duplicate data records completely. This provides better insight into the customer and allows businesses to connect with their customers more efficiently.
Loyalty Programs The purpose of loyalty programs is to increase profits by improving your customer’s experience. However because of their fluctuating mileage, fluctuating value and the privacy implications as well as privacy issues, they are difficult for customers and produce an unsatisfactory return on investment. But, in a manner like cryptocurrencies companies could make use of blockchain to revamp and enhance the loyalty program they offer.
With blockchain, customers will have a single, digital wallet that is compatible with every brand. They will not be governed by the limitations and rules of different brands and point redemption will be significantly simplified. Consumers will have more control over their entire experience and brands will be able to make more of their wallets by giving discounts that are better.
Advertising and Promotion
The necessity of promotion, while essential for all businesses of any size, is not to be overlooked by startups who are only beginning their journey and require recognition in the marketplace. Even though it is one of the most essential aspects of business, advertising is a plethora of many loopholes which can make it expensive and inaccessible for startups.
When Blockchain is added to the mix there are a lot of issues that need to be organized and simplified in the area of promotion.
Let’s take examine the advantages of the use of Blockchain to improve your business in terms of advertising that is decentralized.
Better Audience Focusing
In the past, as marketers, we had to depend on a variety of sources to gather information about buyers’ habits. However, with blockchain technology advertising, marketers will have the ability to create buyer demographics, by getting the information needed directly from the buyers themselves. Blockchain technology will collect all the data that customers would like to share with their purchasing habits and provide these details to the advertisers.
Trustworthy Ad Buys
The issue with online advertising is the lack of information due to the reality that it’s extremely difficult to tell if the users who clicked ads were real consumers as well as paid clickers. Since the blockchain technology is immutable, marketers are able to easily determine the clicks they’re receiving originate from the people they’re targeting. In this way, the advertisement that it purchases will prove valuable to people who have money.
It often happens that you come across ads on Facebook that lists the pricing of the product in N. But when you visit the website the price is displayed as X. Rectification and identification of problems like these are the job of the Ad verifiers, to whom they pay a lot of money to. Blockchain helps to ensure that the content is the same as what appears in an advertisement. It helps reduce the expense that comes with the auditing of advertisements.
Management of Inventory of Advertisements
Advertising inventory as we are aware is the area that advertisers use for advertising selling. It is determined in a monthly manner. The details that go into the entire inventory management process – the number of ads, the duration of the advertisement, keeping track of the day that is allocated to the brand to what day, what amount must be charged space-wise and so on. Blockchain and smart contracts allow brands to not only control inventory better but also collect timely payments from advertisers.
To generate Funds
One of the most important indicators to be successful for any business and the one that allows them to expand to their full potential can be the number of funding that they get. Once your business is supported by investors, you won’t simply become an institution to watch out for, but also gain enough money to help you grow and expansion requirements.
When we think about raising funds or generating investments, there are many options for entrepreneurs and startups – crowdfunding, Angel Investments, Venture Capitalist, Bank Loans, Small Business Administration Loans, and so on. Of all these options for raising the funds, Venture Capitalist has established its place as the preferred method of raising funds as entrepreneurs gain not only money but also the knowledge of VC investors. ICO (a blockchain-powered method of raising funds) is set to replace this VC strategy.
There are numerous reasons that have not only led to the need for VC and ICO to a similar level but also have raised the investment volume for ICO fund models.
The ones that make ICO perfect for you include:
In comparison with those who follow the VC fund model, which asks entrepreneurs to be prepared with a valid financial and market responses that demonstrate how their concept or business idea succeeds The ICO model has benchmarks that are not required and make it simpler for entrepreneurs to get money via the ICO method.
Although VC financing is confined to an established geographical area, ICO can be raised by investors in the UAE even if you’re located in Australia.
Contrary to the VC timeframe for funding for raising funds ICO is for 30 days. It is not a long time, but it’s. This makes it much faster than entrepreneurs can raise funds.
Here are the many benefits of the incorporation of Blockchain in an early-stage start-up.
But, as with any other genuine, valid advantages, do not come without a few challenges.
Particularly in the case of a technology that has the potential to be disruptive as well as not so well researched as Blockchain is, the possibility of companies confronting challenges with its use is apparent.
Let’s look at the obstacles Startups have to face and what possible solutions to overcome the challenges and implement technology to improve the process.
Complexity of Regulations
The main obstacle for enterprises who are considering adopting blockchain is the absence of rules protecting entrepreneurs in the event that there is a problem. While there are numerous regulations being developed aimed at increasing this Blockchain acceptance rate, however, the day where you’ll have a lawful regulatory framework in a place is distant.
Presence in Legacy Systems
Startups looking to benefit from Blockchain require a DLT infrastructure that is based on blockchain, something which requires expertise in technology as well as capital. The answer to this is to hire skilled Blockchain developers who understand how to integrate the technology into the current system, and then implement it on a small scale instead of going all-in.
High Hack Incidents
If you’re looking for something that’s reputed to be safe, Blockchain doesn’t come from security breaches and hacking incidents. The web is brimming with Blockchain hacks that have caused to lose millions and billions of dollars which is the main reason to ensure that Blockchain from gaining full enterprise adoption.
The solution to this issue is using a Private or Permissioned Blockchain ecosystem, instead of an open or permission less Blockchain. When you make Blockchain Permissioned, you are adding another layer of security to the system, making it secure and invulnerable to hacking. Additionally, as the number of parties involved in this scenario decreases, the time to process is increased by a significant amount which makes it much easier to manage several transactions simultaneously.
After we’ve discovered the ways that Blockchain can help make Startups more effective and also the potential challenges and strategies to overcome these, it’s time to research the Blockchain platforms you’ll need to explore to implement the technology in your company.
In the realm of blockchain and cryptocurrency startups have an enormous advantage over established firms. Small, struggling companies might not appear like much but they’re extremely adaptable and can experiment with different kinds of technology. If you’re just beginning your journey, you’re likely to be willing to try anything that might provide you with an edge over the larger competition.
When you use blockchain technology and then adapt to cryptocurrencies, you are enabling your business to benefit from this advantage. This could make your business grow faster and more profitable as opposed to having to do your fundraising and transactions with a traditional approach.
The trend of cryptocurrency isn’t just a passing fad and is a viable enhancement for a variety of business functions. As a new business, your company may be among the first who are using this technology to attain new heights of achievement. The suggestions above will give you a head start. From the hard work of Brisk Logic you put into it and luck will carry you through!