Many misinterpret the use of blockchain technology and how it affects small to medium-sized businesses. We assume that it’s used solely for the creation and exchange of cryptocurrency, but forget that it can positively impact an SMB’s bottom line. To begin, let’s take a closer look at what blockchain is and how it can benefit small businesses.
What is Blockchain Technology?
On one hand and in its simplest form, blockchain technology is a time-stamped series of records of data that are managed by computers and not owned by any single entity. Each block of data is then secured to each other using cryptographic principles. Some may also recognize blockchain as being the record-keeping technology behind bitcoin.
To break it down even further. The word “block” can mean digital information and the “chain” would be a public database. It can be used for cloud storage solutions, contractual agreements, customer payments, payroll and much more. The ability to streamline your business’ dealings can help save time and money and blockchain is used for all types of industries.
Sending & Receiving Payments
In many instances and most commonly for small businesses, blockchain technology is used to send and receive payments. The payments are completed through the cryptocurrencies known as bitcoins, which allows businesses to transfer funds more securely, faster, and globally.
Blockchain Identify Verification
For global or even local companies, fraud and data theft can be a large issue. By using blockchain technology, your SMB has a better way to verify and manage digital identities. For most websites or systems, the identity verification process is completed on a password basis that collects data and “secures” it. When you use blockchain, the identity of users or clients is managed and verified using a unique digital signature using public key cryptography.
Some examples of blockchain identity verification can include IDs, passports, account logins, birth certificates, and more. By adding this level of security, you’re allowing your small business to secure private data with less chances of fraud or hacking.
Improvements with Smart Contracts
A smart contract is a self-enforcing agreement created with a computer code that is managed by a blockchain. This code contains rules with the parties of the contractor agree to and will act upon. When the predefined rules are met, the agreement will automatically be accepted. For small businesses, having a smart contractor can help decrease fraud, contractual problems, legal fees, and wasted time.
Secure Cloud Storage
Data breaches and service interruptions aren’t uncommon when it comes to your business’ personal data or anything saved in the cloud. Blockchain Technology can be used for making a more secure cloud storage that is also affordable and works more efficiently.
Upgrading Your Business with Blockchain Technology
If you have any questions about blockchain technology, reach out to us at CorCystems. Give our office a call at (203) 431-1341.