With so many large enterprises adopting blockchain to streamline their business operations, there are still many organizations, usually SMBs, that don’t trust this technology and consider it to be overhyped.
Yet this article will prove the opposite, bringing out the core benefits blockchain offers for companies of all sizes and budgets.
Today, the blockchain tech reshapes the outdated business models in retail, finance, healthcare and manufacturing, driving innovation for their core business processes. The market is rapidly getting more aggressive and competitive, pushing enterprises to seek new opportunities and ways to transform digitally to keep up with the pace. Blockchain is one of those technologies that are set to help businesses in this mission. But what is exactly the value that blockchain can bring to small and middle-sized companies?
How Can SMBs Benefit from Blockchain?
Security
Revolutionizing the way enterprises complete their transactions and manage their data, blockchain provides increased security and transparency to core business mechanisms.
Blockchain is a decentralized ledger, that forms a digital network of data stored in encrypted blocks. All participants of such a network have access to the data in blocks but have no opportunity to change or delete it. This immutability is one of the main blockchain assets, which eliminates the risks of violation and hacker attacks.
As there is no central database to disable, a company’s valuable information will be protected in its blockchain nodes. When attempting to hack the entire system, unauthorized users will have to kick off each of the nodes, which is practically impossible.
Efficiency
Small and mid-sized companies can win a lot with blockchain’s speed and efficiency. Once again, there’s no centralized server to slow down processes. Plus, blockchain digitalization removes the need for paper-based operations, automating and streamlining any kinds of transactions.
The traditional approach to verifying transactions is cumbersome and time-consuming as well, involving third parties that can set back the whole process. As a blockchain network already contains the necessary data for validating the input, there’s no need to involve intermediaries.
Cost Economy
Reducing the number of intermediaries, blockchain reduces expenses on transaction processing. As cost-efficiency is the number-one trigger for implementing new business models supported with new technology, blockchain becomes the first option to consider.
How Can SMBs Use Blockchain?
Smart Contracts
One of the most efficient and time-saving ways to orchestrate business processes is through blockchain smart contracts. When it comes to transferring money, property or any other objects of value, smart contracts are well-positioned for the task at hand.
Simplifying the way business parties collaborate, smart contracts eliminate the need for third parties. By automating transaction handling, these digitized agreements make it less expensive and easier-to-perform. Once a smart contract is encrypted, no one can change it for their personal benefit. Moreover, there are predetermined rules and mechanisms that control the way transactions are executed and verified.
Supply Chain Management
Blockchain can enhance supply chain management across many business sectors. As traceability is one of the core foundations of logistics, blockchain can robustly optimize business networks with fast location tracking, product positioning and warehousing.
The technology brings speed and transparency to the way how a supply chain is organized, providing the visibility into processes and updating its digital ledger in real time to making all items’ routes to their end-points transparent.
What Does It Take to Go for Blockchain?
Even though business owners may understand blockchain perks and advantages, they can still be cautious about implementing it.
However, there are many easy ways to exploit the benefits of blockchain with the minimum costs and efforts today. genEOS, for example, is one of go-to options for a straightforward and smooth blockchain implementation. This full-fledged blockchain ecosystem is a ready-to-start platform, helping companies to embrace the potential of blockchain tech. If you’ve been struggling to find a reliable solution for a streamlined blockchain adoption, the genEOS framework can be right for you.
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