Blockchain – Emerging Technology for Small Businesses

Blockchain technology isn’t all about cryptocurrencies! It’s a pretty complex and interesting technology with a lot of exciting potential applications even in small businesses. In this article, we’ll take a quick look at what blockchain is and how small businesses are leveraging this technology to make business more efficient.

What is Blockchain?

If you’ve ever had someone try to explain cryptocurrencies to you at the dinner table and felt completely lost from the moment when they opened their mouth, you aren’t alone.

Originally invented as a way to get around financial regulations and institutions, blockchain technology created the first unregulated currencies – cryptocurrencies – over which banks and regulators have no jurisdiction. Here’s how it works.

Blockchain is a technology that systematically records information, storing it globally over thousands of servers while simultaneously allowing anyone on the network to track and view all entries in real-time. This makes this technology very secure and virtually un-hackable while giving users access to very useful information in real-time. And that’s what makes it very valuable for businesses.

How Can Small Businesses Use Blockchain Technology?

Essentially, this technology can be utilised wherever a sequence of transactions must be documented accurately, from making audits easier and more accurate to managing payroll and contractual agreements. Here are some effective ways this technology can be used:

#1 – More Effective, Enforceable Contracts

Whether it’s a service provider contract, a contract with a consulting partner, or a vendor contract, blockchain essentially makes enforcing a contract easier. This tech can transform a jargon-filled piece of paper into a self-executing, coded agreement that automatically produces the stipulated results in line with the agreement. It can’t be tampered with by either side, making it risk-free for all parties.

#2 – Streamlined Supply Chain

If your business relies on a supply chain, you already know how critical it is to make your logistics as efficient as possible. However, getting it right can be an absolute nightmare, taking up hours of work and important resources that could be put to better use elsewhere – and even then, you have to rely on information from an outside partner in order to keep clients informed.

Blockchain changes this by enabling end-to-end tracking in the supply chain from producer through delivery or even use by the consumer, no matter how complex it may be and how many moving parts there are – all transparently, accurately and in real-time.

#3 – Reduced Data Storage Costs – and Increased Data Safety

Keeping operational costs under control is essential in a small business where margins can quickly be reduced by the addition of new resources and solutions, no matter how important they are. Cloud costs are one such issue, where small businesses realise that there is a very real threat to their data security but the costs of cloud solutions are still significant.

Just as with cryptocurrencies, blockchain allows users to store their data more securely in an almost un-hackable environment spread out across a decentralised system of servers around the world. This data is also encrypted for additional security, with your business holding the key.

Use Managed It Services to Access the Best Solutions and Technologies for Your Business

Blockchain is an exciting technology that we’ll start seeing more of as new applications and solutions emerge, which is great news for businesses large and small.

As a managed IT services provider, we can partner with your business to make all IT aspects of your business more effective, more productive and more secure than ever before. Otto IT Industries works with small and medium-sized businesses in diverse fields to bring the benefits of tech, cloud services, cybersecurity and collaborative tools to you, affordably. Contact us today for more information.