Small businesses need to always come with a more efficient and improved way of serving their customers. When it comes to matters like this, there are blockchain technology benefits for small businesses that you simply can’t ignore since they can help you raise capital and conduct transactions seamlessly. Some small business owners may just think that such technologies are only accessible to large companies who have expensive developers to work with; however, the reality of the situation is that it really isn’t as costly as people may think.
Venders have designed ways in which small to large businesses can use blockchain technology. It isn’t just for businesses that are digital-first or present only online. Nail salons, restaurants, collision centers, gyms, boutiques, bakeries, and other small businesses that exist in physical stores can also use blockchain tech.
1. New Payment Method
One of the easiest ways that blockchain technology benefits small businesses is by using it as a method of payment. Customers who want to pay by cryptocurrency will be able to do so without any issues. While the rollout may require some testing and planning, you can get a digital wallet that allows you to complete transactions.
2. Cheap and Safe Cloud Storage
Personal users and businesses spend around $20 billion annually to receive cloud storage. Blockchain technology allows you to store your data at affordable prices and in a safe way. Small businesses can take advantage of this without overspending or compromising their data security. Since data security is available to all sorts of businesses at affordable prices, it becomes easier for businesses to keep their data safe from prying eyes and people who have malicious intentions.
3. Able to Leverage Smart Contracts
Small businesses will be happy to find that blockchain technology is perfect for smart contracts that allow self-enforcing and self-verification possibilities. All the transactions and contracts are stored directly into the blockchain ledger. The benefit of this is that contracts cannot be manipulated or changed once it is recorded. Smart contracts such as agreements with suppliers or vendors, employee contracts, and commercial leases can all be easy to record.
Small businesses will also receive protection under the contract that they may not be able to afford otherwise. You will not need attorneys, which can lower your costs. Ethereum was the first blockchain technology to introduce smart contracts. To know more about bitcoin you can visit Immediate Edge site.
4. Can Be Used for Capital Raising
Blockchain technology can provide small businesses with the chance to raise capital through the Initial Token Offerings (ITOs). This is a perfect alternative to traditional forms of lenders, banks, crowdfunding sites, and private equity firms. There are ITOs that you can freely exchange where trade occurs freely. The tokens are similar to the revenue share or equity that typical companies have.
Any interested investors can buy into your business offering. They will receive blockchain tokens in return. These tokens can be used for the services or products that your small business offers or they can present as a stake in the project or company.
The increasing loyalty that token investors are building has made ITOs very popular since they are a great way to raise capital. These tokens can be sold, traded, and purchases, which presents itself as a new form of liquidity like never before.
It is also a great way to build trust since people no longer have to secretive in their dealings. There is a lot of value in the security that blockchain offers. The amazing ways in which blockchain technology benefits small businesses, you should definitely think about incorporating it into your business model.
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