In 2009, Satoshi Nakamoto created Bitcoins using blockchain technology in 2009. At first, it did not have a significant impact on the world. For example, the first Bitcoin transaction took place in 2010 when Laszlo bought two pizzas for 10,000 Bitcoins. Today, 10,000 Bitcoins are worth $36,281,500. This drastic change in the value of Bitcoin in ten years shows how fast technology changes the fortunes of individuals and businesses. Today, businesses are still discovering the potential of Blockchain technology. Here are blockchain applications that help small businesses.
1. Money Transfers
In November 2017, Forbes Magazine reported that the value of Bitcoin transactions processed each day had surpassed the $2 billion mark. People use it to buy goods and services besides trading it on the cryptocurrency market. Small businesses can take advantage of its transferability. More specifically, there is no central government determining its flow. That means you can use it to transact with any business worldwide as long as it accepts Bitcoins.
2. Smart Contract
In many cases, the use of the word smart to refer to inanimate things means that these things have a mind of their own. In other words, they operate independently once you create and program them. That is what happens in this case as well. Smart contracts are self-enforcing contracts. More specifically, these contracts are irreversible computer protocols that facilitate the negotiation, verification, and enforcement of contracts. Small businesses can use them to ensure that the contracts they enter into with other organizations are enforceable.
3. Notary Services
Verifying the authenticity of your transactions is possible if you use a notary. Many people use a notary when opening a retirement account, establishing power of attorney, or closing on a home. Small businesses can now use blockchain technology to verify their transactions instead of a notary. Doing so is an inexpensive endeavor because hiring someone for it is unnecessary. Instead, these businesses can do it themselves if they understand blockchain technology. Moreover, they can download apps that use this technology to notarize digital files.
4. Cloud Storage
Can you imagine renting part of your unused hard drive space? Well, doing that is now possible thanks to blockchain technology and small businesses can take advantage of it. Doing so would help them have an additional stream of revenue that they can use to boost their bottom line. It is worth noting that the cloud storage market will grow to over $88.9 billion by 2022. That means cloud storage companies will keep searching for new ways to store the data that they have. They can pay you to store some of it in your unused hard drive space.
5. Digital Identity
Did you know that businesses lose more than $18.5 billion annually because of fraud in online advertising? That means that they lost $1 for every $3 they spent on this form of marketing. Can you imagine what small businesses would do with that money if they did not lose it to fraud? Unfortunately, preventing online advertising fraud is impossible with conventional forms of technology. That is why blockchain is the best at tracking and managing digital identities. It ensures that your money goes where it should go instead of people using bots to defraud you.
6. Supply Chain Management
Manufacturing a single product is a concerted effort between different organizations. For example, some companies supply wood to a pencil manufacturer. Others supply graphite to the same producer. Who is to blame when the pencils are of low quality? Blockchain technology facilitates the tracking of raw materials and finished goods. It helps you identify anomalies in the supply chain. Therefore, identifying the problem is a straightforward process because there is a permanent, digital, and auditable record at each value addition step.
7. Gift Cards & Loyalty Programs
Gifts cards are an ideal way of building and maintaining a consistent client base, and so is having other loyalty programs. Unfortunately, intermediaries interfere with this business operation. You can even find them online hawking these gift cards. Doing so makes these programs insecure. Introducing blockchain technology rids your enterprise of intermediaries. Instead, you can issue a gift card that is tradable on a public ledger within a blockchain platform. Get rid of these intermediaries today by investing in this kind of platform.
8. Networking & IOT
Networking is critical for small businesses especially the ones that engage in digital securities. For example, how would you know that a particular security is losing value unless someone tells you about it? That is especially true if you are focusing on another security. Well, in this case, IBM and Samsung built a system known as ADEPT. This blockchain-based system acts like a public ledge for numerous devices. That means that a central hub is unnecessary because a bridge between devices is now possible. Therefore, networking is easier among small businesses than it was in the past.