There’s been a lot of buzz surrounding Blockchain and cryptocurrencies in the recent times. Blockchain is a complicated technology and understanding how it works can be a bit challenging for some people. In very simple words, Blockchain technology is a secure, peer to peer platform for verifying digital events. It is a decentralized system, meaning the power doesn’t lie in the hands of a single player which makes it far more difficult to be manipulated.
“The Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value,” says Don & Alex Tapscott, authors of Blockchain Revolution.
Blockchain technology is especially beneficial for entrepreneurs when we take in consideration the long-lasting impacts this technology can have on data storage and the massive innovations that come with it, how relevant it is to entrepreneurs and how it can change many facets of the business world.
Eliminate background check
Through Blockchain technology, finding the right people for your business will become a lot easier. Verifying their credentials through Blockcerts or similar systems rather than having the HR department call their previous employers to verify their employment history. Their degrees, certifications, and information about their job history readily available on the blockchain system. This accelerates the process of going through countless applications and makes it easier to identify the most promising and deserving candidate. This would result in resources being efficiently used and time directed towards more important activities.
Access to capital
One of the biggest obstacles faced by new entrepreneurs is raising enough capital to fund their startups. In some countries, new and young entrepreneurs do not have access to modern financing instruments that could help them raise capital. Traditional loans that can be acquired for capital raising have incremental fees and many other restrictions attached to them. Through Blockchain technology, entrepreneurs can gain access to capital as digital currencies operate independently of geographic locations. No additional international fee is charged on cryptocurrencies and the process of sending and receiving them as a form of payment is easy as well.
Transparent and accountable
Probably the best feature of Blockchain technology is it’s transparent and accountable nature. It gives people little or no space for fraud transactions or manipulating data. Transactions made to and from the system on the public ledger are secured and verified. An expanding set of records is maintained, promoting efficient transactions between businesses and customers. All parties to a transaction or contract have their own copy of all the proceeds made.
Supply chain verification
Blockchain has benefited the supply chain process in so many ways. Purchasing process can be shifted to automated by setting up automatic or smart contracts. Once the conditions are met by both sides, a smart contract will automatically enter into the arrangement thereby executing shipment authorization, service payment etc. Any sort of legal agreements can also be signed over Blockchain and the entire process of human intervention and meetings, which takes up a lot of time, can be avoided.
“Imagine the number of legal documents that should be used that way. Instead of passing them to each other, losing track of versions, and not being in sync with the other version, why can’t all business documents become shared instead of transferred back and forth? So many types of legal contracts would be ideal for that kind of workflow.You don’t need a Blockchain to share documents, but the shared documents analogy is a powerful one.” – William Mougayar, venture advisor, and Blockchain specialist
Through Blockchain, supply chain process can be secured. Place of storage, property certificates, origin, authenticity, and records relevant to the product are all available in a single ledger. Due to its transparent nature, it can detect any inconsistencies in payment or identity of a party from the very start.