According to Statista, the global market value of blockchain technology may reach 22.3 billion USD by 2023. The technology has so far been a powerful catalyst of change in the global arena inspiring bold governmental, financial and business reforms. With blockchain, the way people conceptualize and manage business in today’s digital era is beginning to change.
This is why today’s entrepreneurs should make use of the latest news and intelligence to establish a resilient business. Regardless of the industry, size of the business or geographical location, they can take advantage of blockchain in many ways. Let’s explore the biggest ways blockchain is changing the business game and how entrepreneur s can leverage the technology.
Blockchain-aided Funding is Highly Effective
Traditional entrepreneurs know angel investors and venture capitalists to be the two primary options to raise capital. But since these are rigid, with very low success rates, newer startups have been turning to blockchain-aided funding.
The two main ways blockchain can raise funds for your startup is through an initial coin offering (ICO) and an initial token offering (ITO). In exchange for funds from investors, ICO’s give certain units of cryptocurrencies and ITO’s deliver a useful product or service to them.
In contrast to traditional ways, entrepreneurs can easily and quickly raise funds through decentralized blockchain platforms such as Ethereum and Wave. ICO or ITO investors are present throughout the world and you don’t have to produce a polished, finalized business plan or product. Only a feasible business plan or model promoting a useful product or service along with a positive marketing buzz can earn your startup funds easily.
Transforming Traditional Business Processes
Being permanent, immutable and consensus-based, the technology can be advantageously adopted into many business processes such as accounting, human resources, operations, taxes, advertising and marketing. Blockchain-based systems can dramatically reduce the costly ‘click-frauds’ and strengthen many other vulnerabilities, verifying personnel data of multi-national corporations or foreign employees, protecting top-secret data and more.
To begin, new or young startups can incorporate basic blockchain capabilities such as accepting payments or paying employees through cryptocurrencies, protecting communications, maintaining records, ensuring digital security and implementing smart contracts.
After the conceptualizing phase of the new business, entrepreneurs must know the basic objectives, chalk out a detailed blueprint and prepare detailed product or service descriptions. Afterward, they must work towards designing and prototyping the product or service and finally, choose and enlist in a blockchain service platform to implement the entire concept.
Global Business is Welcoming Blockchain Technology
Blockchain is a technology that’s deeply ingrained in today’s digital technology and combined with its strengths and negligible costs, the technology is useful for almost everyone.
International trade, for instance, is a complex industry but is often targeted by fraudsters, illegal smugglers and traffickers. As a measure to modernize the industry, Maersk, a globally leading logistics company, along with IBM have launched ‘TradeLens’, the world’s first blockchain-enabled global supply chain and shipping solution, in 2018.
The service uses IBM blockchain technology to support a vast ecosystem of international terminal and port operators ranging from Philadelphia to Hong Kong. There are dozens of participants including cargo owners, freight forwarders, transporters, logistics service providers and customs authorities of nations such as Netherlands, Saudi Arabia, Singapore, Australia and Peru. Now, the program has been successful in maximizing interoperability, data protection and efficiency against the backdrop of traditional systems that are too complex, inflexible, slow and sluggish.
Blockchain is being utilized in international law as well. ‘Legaler’ entered into the market in 2017 as a blockchain technology and infrastructure provider for the legal industry. And another popular instance is that of ‘IntegraLedger’, an enterprise blockchain service, using blockchain to verify and oversee critical document integrity, security, and management.
Similarly, people have begun incorporating this technology into the global financial sector, international communication, telecommunication and many more industries.
In Conclusion: What Can Entrepreneurs Expect?
May limitations in the traditional market are being solved by blockchain technology in providing a feasible, practical and affordable answer. The ease of transferring and receiving money across international borders is only the beginning. And even though the technology is in its infancy, the time is right for new entrepreneurs to proactively approach blockchain and take up more responsibility for their new startup.