How Entrepreneurs can build competitive advantage using Blockchain
As an entrepreneur, you are interested in bringing a unique innovative idea to life and often enough attempts towards execution of the idea brings up unforeseen challenges. In the digital age, almost every problem your business faces can be solved through the targeted application of technology. One such emerging technology that can ease your journey towards entrepreneurial success is blockchain.
Here are the possible blockchain applications to help you grow your business faster and more securely.
Implement Smart Contracts
Verifiable and legally binding contracts are essential for the smooth running of modern-day businesses. However the process of creating and getting stakeholders to sign, scan and email back the contracts is time consuming. Further, enforcing these contracts through traditional legal channels, in case of a breach, is expensive to say the least. The immutable recordkeeping ability of blockchain has brought about the concept of smart contracts. By definition, smart contracts are completely automated legal agreements that can be used to complete the process of “sign, scan and email of contract” with minimal human intervention. When combined with decentralised oracles, these contracts can go even further and automatically handle a range of time taking as well as often expensive legal tasks. Needless to say, this will save your business significant amount of time and free-up resources for more relevant activities.
Simplify Document Verification
Whether it’s a bill of sale, a shipping manifest or the qualification certificate of a prospective employee, verification is essential for all businesses. Traditional paper-based systems do not provide an opportunity for streamlined verification. Quite often you have to hire and pay an intermediary to carry out this essential activity on your behalf. Needless to say, this slows you down, adds to your overheads and can lead to various missed opportunities. Using the immutable record-keeping capability of blockchain, you can potentially reduce the time required for every type of verification and save money by cutting out the middleman while ensuring authenticity of documents provided by your trade partners, suppliers and employees.
Access Capital with Ease
While it definitely takes money to make money, financing a fledgling business is definitely a trick that only a few seem to have mastered. Traditional lenders such as banks seldom (if at all) lend to new businesses due to limited trust and even less understanding of the underlying idea that drives emerging businesses. Business financing secured against bills of sale is often an alternative method of accessing capital, but not all businesses have this option either. In terms of trade financing, blockchain technology has already proven a boon for small and medium enterprises by enhancing trust of financiers and simplifying access to capital. Integrating blockchain into your business processes can definitely do the same for you.
Improve Supply Chain Verification
Modern day supply chains are complicated and often involve multiple stakeholders working in tandem to achieve a common goal. In such a situation, paper records can complicate matters further, result in additional costs, slow down the flow of goods and services as well as leave your business exposed to potential fraud. In such a situation, digital records that encrypted using blockchain can help streamline the supply chain, reduce your overheads and eliminate the risk of fraudulent activities capable of adversely impacting your business. The key to this is the impenetrable encryption of records through blockchain which can be accessed with ease but cannot be manipulated once created. In the longer term, using blockchain encrypted records will enhance the trust between all the stakeholders in the supply chain and make your business stand out.
