In the recent past, a news that made headlines was, Bitcoins. It is a digital currency with encryption techniques used to generate currency. But do you know the underlying technology behind Bitcoins? Its Blockchain technology. According to a research, the global blockchain technology market was valued at US$315.9 million in 2015 and is expected to reach US$20 billion by the end of 2024.
But what is blockchain technology?
According to Business News Daily, Blockchain is a massive, decentralized and encrypted ledger of transactions maintained by many different decentralized sources. Transactions recorded in Blockchain are secure and cannot be changed once confirmed. It can be used for everything from data management to regulatory compliance. It is like a revolution in the present technology and it has the potential to affect all the sectors of the economy.
This new technology is being used by the start-ups and tech companies because of its flexibility, secure nature and data. The blockchain is becoming the base for a number of business applications as well. Some of the start-ups which are utilizing this technology are, IOST, Fr8, Nano Vision and etc. But how is it beneficial to the start-up companies? Here, we have listed out benefits of blockchain technology for start-ups. They are:
Smart contract or crypto contract is a computer program that facilitates, verify or enforce the negotiation and execution of an agreement. As Blockchain technology is secure so smart contracts can be more secure. It can reduce a lot of transaction costs as it does not involve middlemen. But this technology is still in its infancy and we cannot expect of complex legal contracts. Instead of this, experiments with smart contracts are already going on in various industries such as real estate, cargo shipping etc.
Supply chain management
SCM means management of the flow of goods and services which also involves the movement and production of raw materials and finished goods from point of origin to point of consumption. With Blockchain, the entire process becomes transparent. All the data about the shipment, cost, where is the product, are stored in the chain. Start-ups can easily track their products and it gives visibility and helps businesses to confirm that the suppliers meet their requirements.
One of the main benefits of this technology is its accountability and transparent nature. Generally, entrepreneurs are not able to track the transaction but with the help of Blockchain technology information can be trusted and accepted. As all the data are encrypted and secured no one can manipulate it. This technology brought a new level of transparency that the industry had never seen before.
Time and Cost Efficiency
Using Blockchain technology can speed up the entire process of raising funds, making payments. It is a great opportunity when it comes to finances. It allows peer-to-peer and business-to-business transactions to be completed without any third party or a bank. It works 24-hours a day and seven days in a week, which means the transaction process will be must faster. A transaction only takes few minutes and saves a lot of time.
Digital Identity Protection
Blockchain can also help in keeping the companys data secure. As there are hackers who can steal your data. With the help of Blockchain, only you and your customer can take the full control with an encryption key by which only you both have access to it. By this, you can also keep your companys data secure and it will be impossible to get hacked.
With this technology, start-ups can gain access to capital. Blockchain gives the opportunity to raise funds through cryptocurrencies only if it operates in their country. Everyone can easily be able to receive and send cryptocurrencies with some extra charges.
Things are developing with Blockchain. This technology plays a significant role in start-up or any business. With all the unsafe data across the world, blockchain can help to deal with this problem.