Technology has continued to alter our everyday lives on the personal and business dimensions In this regard, blockchain technology has altered the business world in terms of communication particularly because of the security that it guarantees.This is a record of transactions that allow the various users to share information as fast as possible and has basically been provided free of charge by IBM (Rodgers, 2017). As a matter of fact, the technology is being used by various leading retail shops such as Walmart and IBM.As such, Not only is the technology transformative to big companies, the technology can be applied to various small and middle-sized companies.
Advantages to Small and Medium Sized Businesses
One of the major advantages of blockchain technology is the fact that it is cost-effective. In this regard, the major beneficiaries will be small and medium businesses that mainly deal with cross-border businesses transactions. The technology cuts down on the hefty fees that are charged world-leading the international transfer of money. Furthermore, there is the real-time currency exchange which eliminates correspondent bank’s FX conversion process (Koch, 2017).In turn, the business is provided with a platform for its growth.
The second advantage is the provision of a secure platform that enables businesses to manage and regulate relationships with vendors, customers, and subcontractors. This is particularly so because of the secure environment provided for execution of digital contracts. The underlying factor is the ability of the technology to convert traditional contracts into a more digitized form, and if the need be, mini statements. When the contracts are stored in the blockchain, there is no chance that a contract can be altered in turn saving the business time and expenses of legal proceedings that may be associated with company’s bad faith.
Finally, blockchain provides a safe platform for the storage of data. In this, it provides small businesses with a place to securely store data at a reasonable price. Furthermore, the ability to store the data in an encrypted form with the access limited to those with a crypto key ensures the growth of these small companies (Grybniak, 2017).
Blockchain technology has been used for a while and the growth expected is tremendous. Small businesses and medium businesses that use this technology have the potential for growth considering the various advantages associated with it. Some of the advantages include data storage, reduction in transaction costs among others.
Grybniak, S. (2017, September 12). 5 Ways to Put Blockchain to Use as a Small Business Owner. Retrieved from bussiness.com: https://www.business.com/articles/5-ways-small-businesses-can-use-blockchain/
Koch, D. (2017, March 14). How Blockchain Can Open New Doors For Small Businesses. Retrieved from Forbes: https://www.forbes.com/sites/sap/2017/03/14/how-blockchain-can-open-new-doors-for-small-businesses/#66367f1c65b0
Rodgers, k. (2017, October 6). Blockchain, a secure new technology, entices world-leading companies and governments. Retrieved from CNBC: https://www.cnbc.com/2017/10/06/blockchain-entices-world-leading-companies-and-governments.html