The blockchain technology came into limelight for the first time because of the cryptocurrencies. The first entity to adopt this technology was the first functioning cryptocurrency ‘Bitcoin’. Later the potentialities of this technology are found to be much more than the transaction of cryptocurrencies. There are many industries which can benefit from the use of blockchain technology. To the surprise of many Indians, the finance minister Mr. Arun Jaitley announced in budget 2018-19 that government was looking at adopting blockchain tech for disrupting and streamlining various sectors.
The finance industry is the first industry to adopt this technology after the cryptocurrencies. The next industry which can be highly benefited by the usage of blockchain is the startup industry. Startups and businesses are to harness the potential of this innovative technology, let’s have a look at how it can be utilized for a better experience with your business.
The Benefits of Using Blockchain in Startup Industry
Easy Access to Capital
Financing is one of the biggest barriers for startup companies. Most of the traditional financial institutions don’t provide a fund to startup companies as the risk of default is always high here. Blockchain can help the startups gather fund for their business in a better way. One can use this technology to raise fund for their business from any corner of this world. As we are aware of the fact that the blockchain technology is nothing but a distributed ledger, one can operate independently from any geographic location hence receiving and sending fund to anywhere will be a matter of few taps.
Supply Chain Verification
In order to manage the supply chain, a blockchain can be used as a great tool. With the usage of a blockchain, one can track the movement of goods, their origin, quantity and so forth. A blockchain can provide you with the transparency where there will no scope left for confusions. It will help the B2B companies to ease the process of ownership transfer, production process assurance, and payments.
Fully Automated Legal Agreements
The use of blockchain in business will help you to get better, faster and secure documentation of your business. Generally, when the documents or the agreements are done manually, the process slows down. The use of blockchain can automate the whole process of legal agreements and documentation without the involvement of humans. This process can be functioned as the blockchain contains the ‘smart contract’ which can replace the system of “Download, sign, scan, and email back?”
Secures Your Confidential Data
The data which you save in blockchain is always secure. The blocks of a blockchain are believed to be beyond tempering as each block is cryptographically tied to the previous block’s information by a digital key. If any person wants to change a data in a block he has to change it in every block which is nearly impossible. This is the process which safeguards the data and audit trail. So using blockchain in business can safeguard your confidential data from being theft.
Transparent and Accountable
Transparency and accountability are ever needed when it comes to business and blockchain technology can give you both at the same time. A public blockchain is viewable by all parties which creates transparency in transactions. One cannot make any alteration in the logged data within a blockchain until he gets a permission for the same. All the transaction are immutable, meaning they cannot be altered or deleted without the permission of other nodes once they are uploaded in the chain.
Easier Hiring Process
Manpower is an essential component of any business to grow. A better and faster hiring can be done if the data of all employees are uploaded to a database. At present, the hiring is a challenging task for HR managers as they need to call the previous company of an employee to find the history of the one whom they want to hire. This technology can save countless human hours and resources which is used in verifying the resume of a job applicant.
This was just the beginning, not the end!
Here in this article, only a few blockchain benefits for businesses is mentioned but the uses and the benefits can be beyond our expectations. Blockchain technology can provide businesses with a better way to manage finance, operations, productivity and much more.