At this point, blockchain and cryptocurrencies have become innovations that the financial world can no longer ignore. Every possible domain can enjoy new possibilities ushered in by exchanges based on blockchain technology, and entrepreneurship is no exception.
At its core, blockchain is a public record of transactions that provides thousands of real-time validations of the different transactions that are made through it. Whenever a new transaction enters the blockchain, all the computers connected to it run complex algorithms to determine the validity of that specific transaction. The results of each algorithm from each computer in the network are tied to the previous one, creating the ‘chain’ of ‘blockchain’.
Blockchain makes it possible to enjoy faster and more transparent business solutions that will change the way entrepreneurs think and work indefinitely.
Here are six ways in which entrepreneurs can benefit from blockchain and cryptocurrency:
Access to Education
Regardless of age, people all over the world are interested in entrepreneurship, however, some find it difficult to find enough time and resources to extend their entrepreneurial education beyond the formal institutions. Luckily, platforms such as SuccessLife offer video content, personal coaching, and digital courses that aspiring entrepreneurs can utilize with blockchain tokens as payment for access to the needed information.
These new opportunities in education are cost-effective and reliable as entrepreneurs only need an internet connection to access the content.
Blockchain startups managed to raise $5.6B in 2017 alone.
Perhaps most notable among blockchain’s positive benefits is its impact on crowdfunding opportunities. Blockchain startups managed to raise $5.6B in 2017 alone. Just as in its other applications, blockchain is helping fundraising initiatives by making the entire process transparent, accessible from any region, and safe to participate in. Because all transactions are validated simultaneously by a huge number of computers all connected to the blockchain, every transaction can be verified instantly. This helps to create a framework that enables investors to trust that their money is handled safely.
Accessibility to User-Friendly Financial Tools
More companies are starting to incorporate cryptocurrencies into their financial strategies, however, managing multiple cryptos and traditional accounts can stand as a difficult task. Luckily, trading platforms such as Zerta allow companies to connect a crypto, an exchange, a fiat wallet, and a bank in an individual process. Thanks to all the customizable and personalized interfaces Zerta offers, it becomes very easy for users of different experience levels to trade, send, or receive payments.
Entrepreneurs are always looking for new ways to diversify the investment process, and coin-based transactions can accomplish exactly that. It’s no secret that cryptocurrencies have generated a wide range of responses from governments around the world, with many concerned about the apparent lack of formal regulations in the crypto market. Some initiatives are beginning to challenge this concern, and create a trend towards a more reliable coin-based investment environment.
In May 2018, Boston-based private equity investment firm Muirfield Investment Partners announced that alongside global financial technology company AlphaPoint, it will launch a Tokenized Asset Offering. As more big names with decades of traditional finance management experience validate assets through coin-based exchanges, they can bypass major structural issues in current private equity models, and democratize opportunities for investors of all sizes, including entrepreneurs.
Blockchain is helping fundraising initiatives by making the entire process transparent, accessible from any region, and safe to participate in.
Improved Customer-Loyalty Platforms
Businesses have to consider customer loyalty if they want to succeed, and should, therefore, implement a customer loyalty platform in order to maintain good relationships with their customer base. Entrepreneurs often avoid this task because building such a platform can be time-consuming and technically challenging. Blockchain makes the development of these platforms far more accessible. The automatic transaction mechanism that blockchain offers can easily keep track of all customer interactions and adjust their loyalty status accordingly.
As shown in a Deloitte report, some advantages of implementing blockchain in customer-loyalty programs include:
- Reducing Costs: A loyalty rewards program based on blockchain will, in the long run, reduce system management costs as well as expenses related to fraud or errors.
- Making the Process Real-Time: Issuing loyalty points or any other form of loyalty program can be rendered nearly in real-time, thanks to blockchain allowing the recording and accessing of transactions almost instantly by multiple parties
- Creating New Business Opportunities: Blockchain will allow interlinked loyalty networks to exist. Through this technology, large loyalty rewards program providers will be able to find related businesses to team-up with and offer more advantages to customers.
Building Reliable Agreements
The entrepreneurial world cannot exist without a dense network of relationships that often turn out to be the very foundation of new ventures and ideas. All of these relationships rely on contracts as frameworks for individual roles and responsibilities within a network of companies, and every entrepreneur or business owner understand how complex a perfect contract can be. Blockchain can help in developing smart contracts and legal agreements that are made available with great ease.
These are just a few of the benefits the entrepreneurial world could reap from the use of cryptocurrencies and the fundamental blockchain technology behind them. Only time will tell if entrepreneurs and businessmen will be bold enough to maximize the potential of this market. However, one thing is certain: the cryptocurrency revolution has already begun, and those who can adapt the fastest will be those who profit the most.