4 Advantages of Blockchain Technology for Small Businesses

Today most businesses and investors are now well aware of the fantastic bull market phase of Bitcoin. The price of Bitcoin had a three-fold increase in just three months from December 2020, and it had risen past $60,000 in March 2021.

This meteoric rise of Bitcoin had also increased the interest in blockchain technology, which is an inseparable part of Bitcoin. There are a lot of corporations like IBM that have tested and implemented blockchain-based solutions, but this technology is also beneficial for small businesses. Here we explore the main advantages for small businesses when they implement blockchain technology.

What is Blockchain Technology 

Blockchain technology is a distributed and immutable database that stores information about the BTC transactions in data structures called blocks that are linked via cryptography. The way the blockchain system is built makes it impossible for any entity to gain control over it or tamper with the data. 

Satoshi Nakamoto created the blockchain network as a peer-to-peer-based system, which means there isn’t one user in the network that can make changes without the approval of the majority of users. In order to keep the security and fairness of the mining process in the network, Nakamoto made sure that everything is transparent in the system. 

Plus, as the BTC transactions are irreversible, there is a transparent timeline of data regarding each new entry to the database. Another advantage of this is that it takes up to 10 minutes for one block to be approved and added to the blockchain. Furthermore, the transaction costs are low, even for cross-border payments.

Raise Capital

One of the main reasons why small businesses will benefit from a Bitcoin investment is its bull cycle. After a halving is expected for the cryptocurrency to enter a bull market phase, so there is a pattern when it comes to the bull runs of Bitcoin, especially because the available supply compared to the total supply of BTC is increasing at a slower pace than the demand. So, business owners could trade their BTC on online trading sites.

The main benefit of automated trading sites like yuanpaygroup.app is that their software is built to complete trades within certain parameters, and because it is an artificial intelligence-driven system, it can quickly adjust and make more trades compared to manual trading.

Also, this is an excellent platform to get started with crypto trading, specifically in e-Yuan, which is a top alternative to Bitcoin. If you want to benefit from this type of automated trading solution, you can open an account by depositing $250.

Decrease Costs

Businesses are always looking to decrease operational costs and improve the efficiency of the business processes. Blockchain solutions are not only great for online businesses but also small retailers and brick–and–mortar stores will definitely gain a competitive advantage when they implement this type of technology.

 For example, when it comes to supply chain management, because blockchain technology is designed to offer complete transparency, it will decrease the chances of errors or fraud.  Overall, it will provide great protection of the business, its data, and products that weren’t accessible before. 

Improve Efficiency

When it comes to efficiency, it should make the process of purchasing goods and services more economical and efficient, especially because the costs related to each transaction are very low. Moreover, it will decrease the costs because the entities can easily track any product and information regarding their products. 

New Markets

Because Bitcoin is used as a medium for exchange online, this will allow businesses to serve consumers that want to make purchases of goods and services with their BTC. Hence, it will open a new market for the business, and it will help them to communicate with a different target audience. In addition, it’s very easy to set up Bitcoin wallet which is necessary for BTC transaction for small businesses and accept payments even in brick-and-mortar establishments.