Blockchain for everyone (II): Also for SMEs
As we explained in our previous post, the world of finance appears to be where Blockchain fits best. This is not in any way surprising as the original purpose of Blockchain was to power the use of cryptocurrencies such as Bitcoin. Today’s banks and businesses are eager to incorporate it because they are aware of the potential of this technology to make technological (and business) leaders. Nevertheless, Blockchain is breaking those boundaries at an increasingly fast pace.
The application that represented a shift in the use of Blockchain, although still somehow in the financial domain, was crowdfunding: a platform that provides a safe and private means by which people can donate to any cause or project requiring financing. Well, if Blockchain allowed to make a "donation", that is, a payment without receiving any product or service in exchange... Why not in “normal” commercial transactions? It is at this point that Blockchain began to be viewed as a universal technology.
The first step was taken by large companies which were persuaded to incorporate Blockchain into their processes by the growing interest in this technology among users. They therefore saw Blockchain as an opportunity to attract new customers and improve their business. Maybe, the incorporation of Blockchain was no really a choice but rather a necessary step that allowed them to stay on the market and maintain their competitiveness. The large entities we speak of include insurance and energy companies, telcos ... even public administrations.
Now let’s look at SMEs. The cost of implementing Blockchain today is much lower than it was before and it does not require as much technical knowledge, thus it is becoming an increasingly accessible technology. We will only mention a few application examples; some of them already exist, other will in the near future:
- Artists (singers, painters, youtubers, etc.) who want to show and sell their works without intermediary platforms nor their corresponding commissions.
- e-commerce sites that want to get rid of the bureaucratic procedures and fees that traditional payment methods involve (credit card, PayPal, Amazon Pay).
- Collaborative economy companies that strive to create more agile, reliable and secure applications.
This is just the beginning of a long journey, and there are still numerous challenges that must be overcome on the way, especially in the legal and regulatory framework. What is clear is that Blockchain has become an integral part of many businesses and we can already see its benefits in our daily life.… is your business ready for the future?