The massive disruption brought in by the Blockchain technology’s influence is visible on almost every sector that is either indirectly or directly related to the world of finance. When businesses are taken into account, the areas with gaps for public Blockchain to step in are just too many. Startups are the early birds to this; they have pounced on to harness the potential of this disruptive technology. Here are few ways in which enterprises of all nature benefit with public chain implementation.
1. Business capital accumulation
Raising capital is one of the initial hindrances any business or a startup faces at early and developmental phases. In various parts of the world, the protocols followed by lender do most of the time fall in the gray area. For instance service fee, hidden costs, and many such dynamic elements are linked to both secured and unsecured loans in addition to the minimum deposit restrictions. This concerns startups to a great extent that most of the low to medium risk taker tend to move ahead with their idea or dream.
This is one such are where Blockchain overcomes these aforementioned challenges by providing them access to working capital without or very little restriction. Venture Capitalist chooses ideas which they see potential in to become the next big thing. However, the problem in this is that many great ideas which could potentially revolutionize the market ends up as not being able to make it as a result of insufficient capital or investment. This is where Blockchain is least biased by providing entrepreneurs the opportunity to raise funds for their idea. This is made possible as digital currencies like Ethereum or bitcoin operate independently of geographic location and boundaries. There’s the good side and the ugly side to it. In the last couple of years, the number of startups that has come forth with ICO for crowdfunding has considerably increased; at the same time a stat shows that more than 70% of the ICO in the fiscal year 2016-2018 has not made it to the exchanges. This is the adverse effect of the sheer lack of regulatory bodies in the digital currency space.
2. Smart contract the promising legal entity
Any business or startup for that matter gets a sense of legitimacy only with the affiliation or approval of legal entities governing the respective space. This is again addressed by Blockchain with the help of Smart contracts, created by computer programmers with the help of smart contract development tools available that are digital and compiled using programming code languages.
These computer codes define the guidelines and consequences the very same way a traditional legal document does. Stating the obligation, penalties and benefits that the contract implies with either party in different circumstances; a distributed ledger system executes these codes automatically. Automating legal documentation and agreements with smart contracts would mean very less to no human intervention or involvement which would quicken the pace of the whole process.
3. Reduction in discrepancies
The public chain platforms are extremely helpful in resolving complex discrepancies that arise in any of the business phases such as manufacturing, inventory or logistics. With an immutable ledger of all the entities involved in the entirety of the process, and every action and transaction being recorded; the margin for unchecked irregularity is very slim to nil. For instance, if a finished electronic isn’t working at the time of quality control inspection; now with the help of Blockchain we can where it has gone wrong and resolve the issue.
Most companies have adopted Blockchain and have been reaping benefits in attesting such as ethical and legally approved sourcing and in avoiding counterfeit inventory and products. This gives a higher level of transparency in the area of supply chain which many businesses enjoy.
4. Higher level of data security with Blockchain
Which the recent events of data breaches and blunders by major social networks and agencies, the digital world is looking for way to tighten their hold in data security against miscreants; With Europe being the first to act on this with GDPR. Soon the whole world wide web is under high scrutiny with what data should be collected from and individual and what measures are being taken to protect that data. Now with Blockchain, individuals can take the control of personal data into their own hands by implementing an encryption key so that only business and customer would have access to it. Anonymity being the unique selling proposition in any Blockchain.
5. Anonymity and accountability
When businesses choose to adapt Blockchain technology one key highlight would be accountability and transparency. Every transaction that take place occur on a public ledger which would be encrypted and secured as there is no central authority governing it. So the transaction records are tamper-proof. This is where the true power of Blockchain can be felt beyond just cryptocurrencies.