Blockchain is the technology of the future and technology of the cryptocurrency like Ethernum and Bitcoin.

There is a tremendous amount of unverified and fragmented data and with Blockchaing technology it can be safely exchanged and stored. Bitcoin is probably the best example you’ve heard about.

A blockchain works as an online ledger that is able to be viewed by everyone. As a block is updated or verified, the ledger is updated. It’s similar to a Google Docs with restricted settings, allowing only the verified authors to make edits, but enabling everyone to see them and see who made them.

Blockchain Benefits for Small Businesses

There are a number of blockchain benefits for small businesses, because blockchain technology changes how business transactions are created, negotiated, recorded, verified, and enforced.

The decentralized ledger of the blockchain makes it very enticing for small businesses. It can cut out any middlemen while saving time and money. Four benefits for small businesses include:

Lower transaction fees: When you use the blockchain there are nearly no transaction fees. This is because there are no middlemen or central governing authority over the transaction. If any fee at all, it is generally a monthly service charge for using merchant wallet accounts. That is a much better fee than the two to three percent fee credit card companies charge per transaction.

Smart contract transparency: Each block on the blockchain is given a unique number and a key that identifies it. This keeps transparency at the forefront of every smart contract. For instance, Bitcoin transactions are all public. There are, however, cryptocurrencies, like Zcash that keep some transaction information private.

Safe and secure transactions: In the age of hacking, safe and secure transactions and information is crucial to any small business. Each transaction on a blockchain that is verified can never be changed. Transactions are also recorded and verified across thousands of decentralized ledgers, making it impossible to alter.

Fast transaction processing: Most blockchain transactions take less than 30 seconds, and at the very most 10 minutes. This makes each transaction not only safe and secure, but processed in real-time. This could make payroll or vendor payments more efficient.

Thanks to - Megan Ritter

Read also:

Why Blockchain Matters to Small Businesses

8 Blockchain Applications That Could Help Your Small Business