BLOCKCHAIN MAKES SMES MORE EFFICIENT IN 3 WAYS
Mention Blockchain, and we bet that the first thing that comes to your mind is cryptocurrency. But not many in Malaysia knows that this tech has been used in many other ways since its introduction in 2008.
When Satoshi Sakamoto (not his real name) published his whitepaper on blockchain in 2008, the idea was to provide a public digital “ledger” that’s secure from any form of tampering or hacks. This is achieved by piecing data together to form a “chain” of data blocks that cannot be tampered with without breaking that chain.
His idea was introduced along with bitcoin as its first application. Since then, blockchain has evolved into one of the world’s fastest growing and most publicised technologies with the potential to reshape our economy and society in ways we never could have imagined.
It makes perfect sense why its growing in many countries. With so many benefits, businesses both small and large are clamouring to adapt this tech and they’re all reaping its benefits right now.
WHAT IS BLOCKCHAIN?
The easiest way for one to picture blockchain is to imagine it being a virtual ledger or spreadsheet – copied across many different computers that are all connected to form a “chain”. This technology allows companies to account, verify, distribute, and enforce all transactions that a business performs. All these happen in real time, so it’s not as exhaustive as it sounds.
There are many ways that blockchain can benefit a business, but in this article, we’ll look at three of its most common functions for SMEs :
1) ALLOWS SUPER-SECURE MONEY TRANSFERS
Its most common usage is certainly for money transfers. After all, the tech was developed mainly for this. SMEs can facilitate secure transactions to any entities worldwide without the need of any mediators in between. You would not need to pay any transaction fees to intermediaries either, that can help you save a lot of money.
2) ENABLES “SMART CONTRACTS”
Contracts and agreements are a hassle to deal with when it comes to ensuring all parties meet the stated requirements. With blockchain, these contracts leverage on automated computer programs that ensure the terms are met. These contracts in are vital for SMEs because they help diminish contractual problems and other frauds. They are unbreachable and more secure than traditional contracts, that’s why global banks are utilising smart contracts to issue microloans.
3) SUPPLY CHAIN MANAGEMENT
Tedious paperwork is still a major problem for many SMEs here. If your business deals with shipping, logistics or has a supply chain to manage, blockchain can help you manage that effectively. There are blockchain apps available to keep track of shipping and deliveries in real-time, such as Modum.
Now, we know without a doubt that when a new technology is implemented like this one, it will implicate a learning curve. Yes, it would take some time to adapt, but the benefits it brings can take your business much further than you thought.
If you would like to know more about blockchain and other digital tools that can help multiply your profit, sign up for the next episode of SME Virtual Series. Click here to book your slot for free.