Innovative and Alternative Ways to Use Blockchain Technology in Your Startup
Where you have cryptocurrency, you also have blockchain technology. Blockchain technology is just one of many examples of how startups are using artificial intelligence (Ai) these days. This is the power behind Bitcoin and any other cryptocurrency that you may want to offer or accept as payment in your business. However, blockchain technology can be used in many ways other than cryptocurrency.
Since this technology is still relatively new, it’s only reasonable that startups would be the ones to use it most innovatively and effectively. Not sure how this can be done? Here are a few ideas on how to enhance your startup business with blockchain technology.
Using Blockchain Outside Of Finance
Many companies think that they cannot use blockchain technology, other than in the financial sector. However, this isn’t true. Blockchain can help in several kinds of industry, especially in tech. The Internet of Things (IoT), which focuses on making everyday items connected online, is just one of them. Various examples include entertainment, the arts, or even healthcare.
For instance, a platform by the name of Crypto.tickets has used blockchain technology to sell tickets in a safe, manageable, and scam-free environment. Using blockchain ensures that data remains private, transparency is assured, and transactions remain fair. When selling tickets for a coveted event, all these factors are necessary.
Enhancing Business Processes
These advantages may be brought about with more perfect and efficient accounting systems, eliminating the middleman, or seamless sharing of data.
As an example, there’s PowerLedger, a company that provides a platform for energy trading. With the help of blockchain technology to smooth out financial transactions online, this startup successfully shortens the supply chain.
It enables direct selling to the final consumer, thereby increasing profit margins and lowering prices at the same time! It’s no wonder that investors have seen fit to support PowerLedger with more than $17 million for their continued work.
Attracting New Audiences
With blockchain technology, you have a chance to expand your audience and your market along with it. First of all, it allows you to target global markets and offer them smooth transactions without the hassle of exchange rates. Second, and more importantly, the press would give you added attention if you accept Bitcoin, Litecoin, Ripple, etc.
With this recognition comes familiarity. When more people are familiar with your name, they’re more likely to contact you for your goods and services. This leads to more leads, with a higher chance of converting into a sale.
If you need some concrete proof of success, take a look at a company called Trophy Pies. Once this small startup accepted Private Instant Verified Transaction (PIVX), they gained several new customers.
Implementing blockchain technology and cryptocurrencies in this capacity would reduce the likelihood of customers abandoning their online shopping carts. Since they can now pay globally, customers would be more likely to follow through on their chosen items.
Increasing Online Security
Data breaches have more than doubled in the past few years, in May alone, there were over 17 million. In the current decade, such issues are only expected to increase. Even major companies such as HBO, Netflix, and Instagram have experienced severe hacks that have affected several million people.
Blockchain technology can come to the rescue of cybersecurity. This is because there’s a chance to track events, share data safely, and improve security sensors. Since personal data is most at risk, blockchain technology provides effective encryption that could keep our precious startups safe and sound.
These issues are only made worse by the fact that business loans and business credit cards are not always optimal for small businesses. If not issued by a sincere authority, such crutches could slap a startup with several incremental fees, minimum deposit restrictions, and other burdens. Such hurdles wouldn’t get a startup very far. These situations would discourage startups from cropping up at all since the chances of failure become so high.
Blockchain technology serves to enhance the lending mechanisms that are less than stellar options for startups all over the world. It provides a platform for global investors to support the company of their choice, no matter what their respective locations may be.
As a result, entrepreneurs from all corners of the globe would be able to ask for funding and ideally receive it if their idea is good enough. This would provide a more same market, at least as far as initial capital is concerned. The investments could further be sent to deserving organizations without being depleted by international fees, fluctuating exchange rates, and the like.
Making Fundraising Quicker
Startups may be excellent for the economy in general, but they do have the issue of limited funds, slowing them down. Startups can gain access to a decent amount of capital when implementing blockchain technology. With this technological advancement, it makes it easier, cheaper, and quicker for companies to raise the funds they need.
If you’re reading this, you probably have your startup or are thinking of starting one very soon. In any case, you would know that it takes a lot of time, effort, and attention to shape a startup into something worthy of gaining a proper share of the market. However, you wouldn’t be able to devote enough time to your business if you’re continuously occupied with raising funds to get essential functions up and running.
Blockchain technology has the potential to set you free from such distractions. You don’t have to invest a massive amount of time in chasing down angel investors, venture capitalists, or other means of finance. Plus, you don’t have to steel yourself for the drawbacks that come with such investments.
With the implementation of blockchain and cryptocurrency, you get time to focus on your core business and remain in control of it as well. You need to move quickly to make it in the business world. Since blockchain is a self-verifying process, you can get your funding within minutes if you gain the right connections. This would reduce friction, red tape, and a lot of obstacles that could slow down the fundraising process.
When you implement blockchain technology and adapt to cryptocurrencies, you enable your startup to take advantage of this edge. This would hopefully make your growth much quicker and more lucrative than if you were to go about your funding and transactions traditionally.
Cryptocurrency isn’t just a trend, but a proper improvement for several business functions. As a startup, your company could be one of the pioneers, using this technology to reach new heights of success. The ideas above will get you started. From there on, your hard work and luck will see you through!
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