The next wave in the landscape of business is paving its way to blockchain technology! The growing consensus among entrepreneurs and business leaders indicates that blockchain businesses are the future. From accounting to operations, the tech is going to be crucial for the future of business.
For those who are new to this concept, blockchain is a digitized, decentralized and an immutable ledger that various participants maintain over a network of computers. The system ensures a secured platform as it allows all the participants to keep a track on the digital currency transactions individually, discarding central authority of record keeping. Thus, the authenticity of the transactions using blockchain tech can be verified by the entire community and not just one central authority.
Just as encryption and coding ensure transparency and efficiency of transactions, the technology is compelling top businesses and companies to rethink their strategy and develop innovative solutions using blockchain technology. To elaborate, here are top six (6) ways how this technology is revolutionizing modern entrepreneurship with real-time improvements.
More precise accounting for business transaction
In the era of economic globalization, the need for managing business accounts in remote locations across the world is more dominant than ever. It all comes with a fair amount of complexities and challenges. With factors like taxation that tend to vary from places to places, keeping a precise account of business expenses, losses/profits, etc. is an ordeal.
With blockchain at their disposal, entrepreneurs are now relying on this technology’s transparency to eliminate uncertainties and potential chances of fraud that have plagued businesses since the early days of global sourcing. Also, the verification of transactions by a worldwide legion of approved users allows auditors to devote their time and focus to detecting and probing anomalies instead of validating transactions.
Transparency in advertising and marketing
Advertising on mobile devices or online has become a norm. As the advertising and marketing activities are on the rise, the risks of fraudulent activities are also rising. Having blockchain technology can considerably reduce the risk of “click fraud” and help advertisers and marketers to reach their market or target audience effectively. The principles of blockchain can immensely help businesses to monitor and govern budget spend and thus keep an eye from the initial investment of the media budget to the final publication. This minimizes the risk of overcharging or underperformance.
Easy to use payment/financial tools
The ease and convenience of transactions are pivotal to user/consumer adoption. As the blockchain technology is empowering new ventures with cryptocurrencies to easily manage their financing, it is gaining prominence as a comfortable and secure trading platform for business.
Unlike traditional payment methods that have time-consuming processes and charge hidden international fees, blockchain provides a personalized and customizable interface for payments. It allows consumers of all levels of experience in trading to send and receive payments. Also, dealing with like-minded people from all around the world leads to added comfort.
Automation of legal contracts
Legal contacts form the basis of all businesses. In today’s technology-infested fast-paced world, the traditional process of legal agreements between businesses can be costly and extremely time-consuming due to various delays because of human intervention.
Blockchain signatures and digital contracts run on blockchain, also known as smart contracts, provide efficient, reliable and affordable alternatives to traditional agreements Also, smart contracts have the ability to self-enforce and self-execute, which makes the process faster and free from unnecessary hold-ups like waiting for approvals or signatures of either of the parties. Thus, blockchain facilitates automated and fast legal contracts. .
More efficient ways of fundraising
The biggest challenge for small businesses or startups today is to invest precious time and resources into fundraising process. Raising money for business at the right time from right sources is extremely important for your business to excel. However, it takes an abundance of time away from your core business activities. The traditional ways of fundraising were tedious owing to several meetings, travel and long mail trails to get the deal finalized. Entrepreneurs today look for fast solutions for fundraising and focus on core activities and speed up the entire process. The innovation of the blockchain technology has provided ventures with a self-verifying system where companies can transfer funding in minutes once the investment decision is made. This fosters the entire funding process and opens new opportunities for investment.
Stress-free customer loyalty programs
Customer loyalty is the essence of every business. To grow and prosper, every business needs to build strong business customer relationships. Developing such programs requires tremendous efforts, bookkeeping difficulty and requires additional data field to manage. Blockchain is an ideal tool that helps businesses to develop engaging customer loyalty programs, reward customers with special incentives and strengthen close relationship between the company and its customers.
As much as blockchain is changing entrepreneurship, there are still many aspects of this technology remain hidden to the human sight. For years to come, blockchain technology promises modern entrepreneurs a whole new future with unexplored opportunities and plenty of room to grow.