What is blockchain technology? It is a distributed and decentralized digital ledger that offers a permanent record of the transactions carried out. In this write-up, let us determine why startups must invest in blockchain technology.
How will your business benefit from blockchain technology?
Blockchain technology gained momentum because of cryptocurrencies. And Bitcoin was the first to adopt this technology and function along these lines. However, the benefits and potentialities of this technology far outweigh its use just in the digital currency market.
Experts believe that startups can immensely benefit from this technology. Let us see how. As an entrepreneur, before you incorporate blockchain into your business operations, it is essential that you must be well versed or at least has an idea about how blockchain technology. Let us find out how you can derive optimum benefits.
1. Access to capital becomes easier
Unlike the traditional funding method for any startup full of risks, and it has been found that not many would like to deal with one, blockchain technology can help you raise funds from across any corner of the world.
2. Supply chain verification
If you are trying to manage supply chains, blockchain can come to your rescue. You can keep a tab on the movement of goods, from where they originate, the quantity involved, and so on. It offers much transparency, and B2B companies can benefit immensely.
3. Your confidential data remains secure.
Any data saved in blockchain remains secure. The blockchain blocks cannot be tampered with, and every block is tied cryptographically to the previous block. So, if someone tries to tamper with a single block of data, it is impossible.
4. Legal agreements are fully automated
Documentation is one of the pivots of any business. With the help of blockchain technology, the same can be processed better and faster. Unlike manual documentation processes that take a lot of time, automated processes work way faster.
5. Transparency in business dealings
In the case of a public blockchain, data or documents are usually accessible by all from a centralized ledger. Any of your team members can view the data, which leads to transparency.
6. Accountable and safe
As seen in one of the above points, the data cannot be altered or modified due to the nature of the technology. Transactions using such technologies are safe, and you will not be able to change any information unless the same is not changed in all the nodes. And once uploaded, unless you seek permission, you will not be able to make any changes in the data, which renders the same very useful and secured.
Due to the above features, all the startup blockchain technology companies incorporating this technology have benefited from the same, and many are also following suit.