How Blockchain and Crypto Meet Growing SME Demand
A key question that has been hovering in the mind of everyone’s how Blockchain is going to be impactful on small and medium enterprises. As per the World Bank, SMEs contribute to 40% of the GDP. With such a whopping share in the growth pie of the economy, we cannot certainly undermine its importance and how Blockchain and cryptocurrencies are going to impact this segment.
Blockchain and its key features
Blockchain finds a number of applications because of the features that it can render to businesses. Some of its remarkable features include:
1. Transparency
2. Decentralization
3. Peer-to-peer interaction
4. Immutability
5. Data security
The benefits and importance of these features are not merely limited to just big businesses; even small businesses can make huge money out of it. Let’s have a quick look at these benefits:
1. Transparency- Every business, whether big or small, needs to maintain transparency in its business functioning. They must ensure that the stakeholders and the customers have complete knowledge about the way their business operates and whether the money that they are investing is going in the right place. Besides, customers want to have value for their money. The products that they are choosing or services they are availing of should substantiate the pricing. With transparency and traceability features, businesses can ensure complete transparency in the system, thereby generating more trust.
2. Decentralization- The biggest drawback of the conventional system is that the information is centralized. It means all the information is governed by a central authority or server. It simply means that if there is a loss of data from the central server, then it will impact the functioning of the rest of the businesses. This is not the case with Blockchain. It is a distributed ledger technology, which allows the data to be distributed in the entire network. Thus making the information easily accessible to all.
3. Data security- It’s a fact that digitization of data has improved productivity, but at the same time, it has exposed vulnerable points to hackers. Data breach, data threats are some of the common problems. To combat this, we need a system that can ensure the complete safety of data, and Blockchain plays an integral role in it. All the entries in the DLT are encrypted cryptographically. Further data time-stamping also enhances the security of data. All this clubbed together makes Blockchain a panacea.
Coming to the question of why SMEs need this technology? Whether it is a small business or startup, they have a limited source of funding. Unlike the big moguls of the business world, who spend a huge amount on enhancing security systems, SMEs don’t have access to such complex security systems. This makes the information present with them easily accessible. But with the implementation of Blockchain technology, companies can bring in the best security system to their businesses.
Concluding thoughts
The growing advantages of Blockchain and crypto are not merely related to generating more revenues, but it is here to create a system that is infallible. If you, too, are willing to learn more about Blockchain technology, then this is the right time to connect with the Blockchain Council today.
