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How Blockchain Can Open Doors for Small Businesses


— February 12, 2020

Improved efficiency, transparency, security, and traceability are some of the properties that blockchain technology offers to your business operation model.


A technology has become quite popular in the last decade. It has the ability of making business operations fast and secure. Can you guess it? It’s blockchain technology!

Let’s start with an introduction. 

What is Blockchain technology? 

It is a technology that has come up in the market in the last decade. It became more popular because of its use in cryptocurrencies such as Bitcoin. All the Bitcoin transactions were fast and secure as they were utilizing a powerful, immutable digital ledger (which is termed as blockchain). 

Actually, Blockchain has the solutions to various problems present in current businesses such as poor speed, poor data security, and money fraud. Moreover, these problems are seen in almost all the sectors of the market whether it is healthcare, finance, banking, retail, eCommerce, etc. 

What statistics say about Blockchain

As per TechJury, Blockchain has the ability of reducing 30 percent of costs that banks put in their infrastructure management. Also, it is estimated that more than 55 percent of healthcare applications will have embraced blockchain for commercial deployment by the end of 2025. 

Also, if we talk about 2018, the financial sector has spent a total of $552 million on blockchain. But, if financial companies use blockchain, they will be able to save more than $12 billion in a year. That is really a big thing for them; to save $12 billion is not less than a miracle for these firms. 

In fact, there are certain firms that struggle to save their money by optimizing their business operations. But blockchain has set examples in the last decade for minimizing costs. 

How can Blockchain help a business? 

In several sectors such as banking, healthcare, government, and finance, innovators have put a lot of effort into blockchain app development just to modify existing business operations. However, there are various certain industry leaders who have already attained considerable business benefits. 

Some of these advantages are:

Enhanced Security

Blockchain-based systems are more secure as compared to other record keeping systems in the market. All the occurring transactions are agreed by all the people in the blockchain network before they are recorded. Once a transaction is approved, it is encoded and connected to the previous transaction.

Black and gray laptop computer turned on, rows of data onscreen; image by Markus Spiske, via Unsplash.com.
Black and gray laptop computer turned on, rows of data onscreen; image by Markus Spiske, via Unsplash.com.

Moreover, the information is stored in more than one computer. So, it is impossible for hackers to steal the transaction data. Hence, blockchain has a big opportunity for vanishing fraudulent and unauthorized activities. 

Efficiency and speed increases with Blockchain 

It becomes complex to do trading with the help of traditional methods using paper-heavy processes. Moreover, the traditional method is prone to human errors and it requires a third party mediator. 

However, it becomes easy, fast and efficient with blockchain technology. And a single digital ledger is shared between participants so you do not need to reconcile multiple ledgers.

Improved Traceability

No one other than a manufacturing and shipping industry can understand the pain of tracing a product back to its origin. Before the inception of Blockchain technology, it was quite difficult to manage this problem. But with blockchain it has become easy to avoid this pain of tracing a product. 

In a blockchain-based supply chain, all the exchanges are recorded on the blockchain and you have entire information about the origin of the product to the customer. 

Due to this information, chances of fraud has largely reduced.  

Wrapping up

Improved efficiency, transparency, security, and traceability are some of the properties that blockchain technology offers to your business operation model. It is seen that small businesses struggle to minimize their cost and increase data security. 

But now with the help of blockchain technology, these small businesses can easily achieve all these aims. So, we can say that blockchain has opened doors for small businesses to innovate and expand!

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