The Blockchain is a new technology that is becoming very popular across the global IT industry. While Blockchain is invariably associated with Bitcoin, there are a number of different ways in which this technology can help businesses across the world. Talking in the context of business Blockchain technology offers a host of opportunities for the start-ups and the possibilities extend far beyond cryptocurrency or easy transactions.
Different ways in which Blockchain technology can help start-we leverage their capabilities and enhance their rewards:
1.) Data Integrity
- In this data-driven age, one of the major concerns for any start-up or business is to ensure that their mission-critical data will not be corrupted or altered by entities with vested interests.
- Blockchain offers the precise solution here as it makes it technically impossible to tamper the data blocks that are once added to the chain. This technical restriction saves businesses from monitoring the digital arena for such activities tend to be tedious, vague, and less efficient.
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2.) Blend of transparency and security
- Another major concern for the businesses is to ensure maximum transparency without compromising security. The sophisticated technology of BlockChain guarantees to retains the integrity of data and at the same time promotes transparency.
- It solves two major purposes of the start-ups that cannot afford sophisticated IT security ecosystem or technologies; they can enjoy anytime access to the data without being concerned about the security.
3.) An innovative business model
- Blockchain also offers the start-ups an innovative yet less-explored business model. Decentralization and transparency or data guaranteed by BlockChain technology offers the key capabilities to the Start-ups to explore a number of business ideas for solving the most pressing issues of the present era.
- Right from healthcare to CRM activities and logistics, there are a number of sectors that can be benefited by Blockchain technology and by strategically using the technology the start-ups can find a less-explored avenue of business that significantly reduces the competition.
4.) Leveraging the efficiency of business functions
- One of the major concerns of the start-up entrepreneurs is to utilize the effective methodology to streamline their business operations. There are various responsibilities once the business is started – taking care of accounting, CRM, communication etc. However, the new start-ups generally lack the sufficient manpower or infrastructure to ensure the maximum accuracy on such critical fronts.
- Thanks to the innovative model of Blockchain technology the start-ups can now enjoy more accurate and competent performance on such crucial aspects without having to invest significant resources in infrastructure, additional manpower or hiring expert services.
5.) Cost efficiency, easy collaboration, and accurate tracking system
- The Blockchain helps the companies to quickly and securely share the data along different points without worrying about the integrity of the same. That means the most important aspect of the data- the figures- will remain intact while the maximum transparency will facilitate the real-time collaboration.
- There are innovative ways where the Blockchain technology can help Start-ups in this context. For instance, the start-ups can hire freelancers or remote workers without any significant concerns about the integrity or accuracy of the data thanks to the blockchain technology’s capabilities.
- Besides, it will be much easier to track the inventory, CRM issues and accounting related concerns with more accuracy and efficiency. The result will be error-free accounting, better stock availability and quick resolution of customer issues.
- If used in the proper way the Blockchain can also replace the middlemen that can save a good amount of time, costs and management hassles associated with the same.
6.) Replaces complicated process of fundraising
- Lack of capital is the root cause of failure of many start-ups ideas that don’t go beyond just a concept. On this front, the Blockchain technology can help a great way Raising capital via Venture capital needs a specific process of pitching, waiting for approval etc.not to talk of the competition between multiple start-ups that slims the chances of approval.
- With the help of Blockchain powered cryptocurrency it could be easy for the start-up owners to generate the tokens via token generation events.
- The start-ups can not only get the funds without going through a complicated process but can also start using the same without any delay or stringent formalities. Quick availability of instantly usable currency holds a prime importance while starting a new start-up.
Read More: Blockchain Technology: Definition, Types, Working, And Benefits
7.) Can increase the conversion rate
- While online shopping has gained much popularity in the recent years, many people are still apprehensive of sharing their key details like bank details or credit card information. They get all the more suspicious when visiting a new eCommerce site from a start-up.
- However, the Blockchain-powered cryptocurrency not only offers such customers to complete the purchase without sharing any key details regarding the bank or credit card but also assures them that the complete transparency will be maintained during the transaction.
- It will also increase the scope of potential customers and targeted audience and can eventually help in increasing the conversions.