Blockchain technology is undoubtedly the most happening thing on the Internet. Originally designed for the digital currency Bitcoin, the technology has evolved into something bigger than expected. It is said to be the backbone of a new type of internet — the technology of trust.
Today, blockchain tech is being employed in different industries and areas, especially where the markets are ineffective trust level. It is extremely appreciated due to its core facility of decentralising the data — preventing an individual to change the data, and thus, mitigating the risk of fraud.
Though the technology is leveraging different sectors and industries, including education, real estate, finance and government, it is highly revolutionising the world of entrepreneurs. It is leveraging them with unique and a vast range of opportunities, enabling them to come up with more innovations.
If you are keen to know, here are some of the ways Blockchain technology is enabling entrepreneurs to make their startups a success and enjoy limelight in the market without much hassle:
While it is highly crucial to raise funds at the right time and from the right people, the fundraising process does take tons of time and effort, which might have been better utilised for the upliftment of the startup. In fact, raising capital for startup from the classic route of venture capitalists takes months of meetings, emailing, travelling, etc. This reduces the speed by which a startup can establish itself in the market.
Blockchain technology, a self-verifying system, accelerates this process by letting the venture firms transfer funds in less than five minutes after taking their investment decision. Various companies have already started using blockchain technology for raising funds for their business, ditching the traditional fundraising sites like Kickstarter.
2. Capital exchange
The mechanism of capital exchange, in various places across the globe, is substandard for small businesses and startups. The cost associated with the conventional loans are unrevealed, and the entrepreneurs are not provided with an access to the latest financing and fundraising tools. This makes the process of gathering and managing funds even more difficult.
Blockchains, in this scenario, help the entrepreneur with the facility to gain access to the fund for startup from any corner of the world. Digital currencies, such as Bitcoin, are employed, which are independent of geographical location and therefore, does not involve any hidden exchange amount. In other words, the whole process of sending and receiving cryptocurrencies can be done without any international fees and restrictions with the help of Blockchain.
3. Automated legal agreements
If you are an entrepreneur, you would agree that many a times, a business contract or agreement faces delays just because of a single signature (digital or physical) or dependency on lawyers.
With features like Smart Contracts, blockchain technology is replacing or augmenting lawyers. It is enabling businesses to operate the legal agreement process at a fully-automated level (without any traditional delays of waiting for signatures and approvals).
4. Identity verification
For both startups and market investors, it is extremely important to check the background of one another before getting into a business relationship. This process is time-consuming and involves high efforts and market contacts, which slows down the process. Blockchains, in this situation, can be easily applied to the identity authentication process. From birth certificates to previous work experiences, this innovative technology can make the verification process seamless, saving countless hours invested in the process.
An example of blockchain-based identity management platform is Civic, which empowers the users to register and authorise their personal identity information and prevent identity theft on their credit reports.
5. Secure data storage
Businesses store their data on the cloud to access it anytime and anywhere. However, they have to depend on a third party for this purpose, which is a concern for them, especially when dealing with highly-confidential data. Blockchains, in this context, make the cloud storage decentralised, which means no individual can manipulate or delete the data. This enhances the data efficiency, security and cut down dependency on third-parties.
6. Supply chain verification
We often buy products online (from suppliers unknown to us). The product reaches to us while passing from different middle persons. When such products fail, it is quite difficult to point out who is the culprit- the company itself or the people involved in between. This affects the relationship of the customers with the businesses, which is vital especially when your startup is not yet well-established in the market.
Blockchain technology can help in this scenario by easily scanning and identifying at which point the fault has arisen. In other words, blockchain can be employed in authenticating things like ethical sourcing, preventing counterfeit products, and ensuring that the right services are being delivered to the customer.
7. Lower barrier to entry
Blockchain tech creates digital marketplaces where there’s no monopoly control over the price and access to data. This increases competition in the market for the power and lowers down the barrier for startups’ entry, which eventually leads to the emergence of more innovative products and services.
Although blockchain technology has not yet evolved, it is becoming one of the most revolutionising technology in the present era, opening doors for well-established firms and startups in 2018. So, in case you are an entrepreneur or aspire to be one in the future, the technology is the best thing to invest in.
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