Why the future’s most successful businesses will be blockchain-based

By 2023, businesses are predicted to spend around $15.9 billion a year on blockchain technology solutions. Entrepreneurs and companies in every sector are keen to integrate blockchain products or create their own distributed networks. To date, 60% of the blockchain market share is attributed to the financial services sector as it finds many viable use cases in banking, transaction management, and record-keeping.

Blockchain can be used both as a way to publicly record transactions and also as a private back-end solution for many business operations.

Its multi-faceted application combined with ever-expanding potential means that its reach has spread to almost every sector. Education, healthcare, voting, government, oil and gas, science, supply chain, logistics, payments, and eCommerce- businesses of all sizes are now using blockchain.

A 2020 survey of C-level individuals in Europe found that around half are planning to incorporate blockchain into their operations with around a third predicting it will soon completely replace their current operating systems.

Why are businesses using blockchain technology?

The reason more and more businesses are using blockchain technology is quite simple; it’s the future. Blockchain technology provides startups, existing businesses, and companies of all sizes with many solutions to long-standing issues.

For example, as a decentralized platform, blockchain is unique and is not managed or dependent on any entity or node. This means it is impossible to hack, cannot be tampered with, and does not experience any downtime as it simultaneously replicated across an infinite number of nodes.

Additionally, the security and privacy feature that blockchain presents are currently unsurpassed in any other technologies. It’s immutability and the pseudonymous way in which it stores transactions means that once an action has been executed, it cannot be edited, deleted, or tampered with. For businesses where audit and paper trails are an integral part of operations and where security is paramount, this is a powerful benefit.

Blockchain also has the power to self-execute a chain of events, based on the completion of the previous ‘link’. For companies in logistics, sales, and real estate, this means automation of previously manual and mundane tasks is possible.

Strategically, blockchain implementation can give you a significant competitive edge over your contemporaries, as well as bringing operational advantages. Customers love innovative technology solutions. Being able to advertise that you implement blockchain into your operations positions you as a leader, trailblazer, and as a company that has its finger on the pulse.

But can it work for startups and SMEs?

Blockchain technology can be applied within any company, of any size, and almost any nature. While developing an entire blockchain structure from scratch will probably be beyond the scope of many startups and small businesses, there are plenty of other ways it can be integrated.

For example, setting up cryptocurrency payments for an online gambling site or setting up a cryptocurrency exchange would all involve blockchain technology. For the former, all you need is an agreement with a cryptocurrency payment provider who can process payments for you.

Blockchain has also found various uses in ID management. Individuals’ identification documents and personal information can be stored securely on the blockchain and used to verify identity as and when required. Likewise, information relating to employees, customers, and suppliers can also be stored and managed on a blockchain network.

If you are starting up in eCommerce, all your platform transactions can be stored in a blockchain network. Events such as an order or payment are not only stored immutably but can trigger actions such as the warehouse packing and shipping items. At a logistics level, you can offer customers tracking services that use blockchain technology, avoiding the loss of parcels and reducing costs.

These are just some of the many ways you can integrate blockchain into a startup or smaller business. Logistics, HR, ID management, compliance, finance and accounting, payments, and placing bets, the possibilities are vast.

Other considerations

Startups wishing to use blockchain technology, need to be mindful of which jurisdiction they will base themselves in. Different countries have different rules and regulations when it comes to blockchain and some will require additional licensing. If for example, you are setting up a cryptocurrency casino or exchange, you will need to apply for a license and let the regulators know you intend on allowing cryptocurrency payments. Other jurisdictions have specific blockchain and crypto laws designed to supervise the sector.

Before the set-up state, it’s always best to confer with a corporate services provider who has experience in blockchain business and the jurisdictions you are considering. They can advise you on how your decisions will impact where you can operate and what audiences you can target with your services.

Integrating blockchain technology is something that all startups, SMEs, and larger businesses need to consider. The statistics show us that this is not a trend or something that will soon be forgotten. Rather, it will infiltrate every sector and industry, revolutionizing how we work, consume, and exist.