As an entrepreneur, you need to be at the forefront of technology and innovation to build successful businesses. Startups which fail to move with the times get left behind, and innovating with new technology is one of the most effective ways to build a competitive advantage and use your resources more efficiently.
One of the most talked about technologies for business over the past few years has been blockchain. What is the blockchain? It’s a digital ledger which stores information, sort of like a database. However, it differs in that it’s distributed over a network, making it completely decentralised. The ledger is shared between all the devices on the network, each verifies new data that’s added to ensure it’s correct.
Blockchain is widely known thanks to cryptocurrencies like Bitcoin, which act as decentralised currencies. However, it has plenty of use cases in the world of business. Read on to find out how you can utilise blockchain technology for your startup.
Tokenization
Tokenization is the process of converting something into a digital token on a blockchain. These tokens can be stored, bought or traded, and their unique and anonymous nature creates a world of opportunities for businesses.
Many industries, including retail, finance and travel, are looking to tokenize their assets and services, giving customers more control of how their data is used, enhancing security and making purchases easier and more accessible.
You can learn more about tokenization for business from NYALA, a company which specialises in tokenization for funds, real estate and more. You can learn more about this from more in-depth articles about tokenization. By adopting tokenization, it’s possible for a fund to gain liquidity and for transaction costs to be reduced.
Payments
The most obvious use case for blockchain is in processing payments. Cryptocurrencies such as Bitcoin are designed with online payments in mind, allowing users to transfer funds anywhere in the world quickly and for low fees. The immutable nature of the blockchain means transactions cannot be faked or edited afterwards, ensuring no middleman or bank is needed.
Many startups and businesses now accept crypto as a form of payment as it improves accessibility for consumers, especially when selling goods and services online to overseas markets. It means there’s no need for currency conversion, and the fees involved in transferring and selling crypto for fiat are often much lower than traditional payment processing fees.
Many crypto payment processing services allow businesses to generate a unique QR code for each purchase, which the customer then scans to receive a link for the wallet and the amount they need to send. It’s almost as simple as paying by card, and as cryptocurrencies become more popular, a growing number of businesses will begin to accept this form of payment.
Supply Chain Management
Blockchains aren’t just for recording financial transaction data. Just about any data can be logged on the chain, including the production and transport of goods. Supply chains can be highly complex, and small delays or issues can result in customers not receiving the products they want and a business losing money. In addition, valuable items such as designer goods need to prove authenticity.
The blockchain can be used to trace every stage of the product’s journey through the supply chain, from the factory to the supermarket and the hands of the consumer. This is great for products where freshness makes a big difference to the experience. Supply chain management can also help improve the security of pharmaceutical production, leading to better and safer treatments.
Data Storage
Data is hugely important for modern businesses. Startups should look to collect data on their customers and their buying habits in order to understand them better. However, this data needs to be stored safely to avoid breaching regulations. A private blockchain can be an effective way to keep valuable data safe.
