Three Benefits of Blockchain for Small Businesses

Blockchain technology isn't just for online or digital-only businesses. Any small business categories that depend on a physical space can use the blockchain to get started.

FREMONT, CA: As small businesses expect higher efficiency and better ways to serve their customers, blockchain can be especially beneficial as a means of conducting transactions and even raising capital. While many small businesses believe that such advanced technologies are only available to large corporations that can afford expensive developers, the cost of incorporating blockchain technology into a small business operation is less than expected.

Here are three benefits of blockchain for small businesses:

Provides safer and cheaper cloud storage

Every year, businesses and individuals spend more than $20 billion on cloud storage. Blockchain storage applications enable users, including small businesses, to store data in a secure and cost-effective manner without jeopardizing data security or overspending.

Businesses can leverage smart contracts.

Blockchain can be used by businesses to create smart contracts, which are self-verifying and self-enforcing contracts. The contract is documented in a blockchain ledger in a way that cannot be altered or misused. Smart contracts provide small businesses with protection that they would not be able to afford otherwise. A smart contract eliminates the need for a middleman — typically an attorney — and thus reduces a company's costs.

A new form of payment

The first step in implementing blockchain technology is for a company to accept cryptocurrency as a form of payment. When organizations accept blockchain currencies, they gain a few advantages. Cryptocurrencies enable businesses to deal directly with customers, lowering transaction costs. Another significant advantage of blockchain payments is that they are permanent and irreversible, leaving the customer with no option but to contact the business directly if a refund is wanted. This helps tackle the issue of chargebacks, which occur when customers purchase a product but then cancel the payment with their credit card company, leaving the business in a difficult situation.