How can blockchain help SMEs?
Blockchain is a secure decentralised database technology. As such, blockchain-based products have the potential to become a widespread used tool to ensure protection of sensitive data, as well as to enhance accountability and trust among parties.
During their growth, SMEs face many challenges. They encounter problems in finding financing, scaling their operations, processing payments and recruiting other ancillary services that are both necessary to grow or go global. Blockchain presents a solution to these challenges. This technology could solve the problems in the areas of funding and trade finance and be used to solve many of their inefficiency problems. Safe and secure data transactions and smart contracts may optimize supply chains and improve client satisfaction by automated services.
Here are some benefits that blockchain can help SMEs grow:
-Monitoring Transactions: Blockchain prides itself on its transparency. With this, entrepreneurs can ensure all transactions are safe and reliable.
-Little Risk of Fraud: Because Blockchain uses a decentralized network, there is little chance of one person gaining control of the network and trying to tamper with the business’ documents.
-Smart contracts: Using smart contracts in SMEs speeds up the traditional process by eliminating all the intermediaries. It’s secure and safe as information is encrypted and resistant to hacking.
-More Efficient Payments: With bitcoin, the possibilities of online payment are endless and SMEs can make payment transactions seamlessly.
Certilogo, an Italian SME that began operation in 2006, uses blockchain and other complementary technologies for its product authentication platform. Specialised in the authentication of fashion and luxury goods, the company partners with more than 100 brands globally. Originally focused on the use of Artificial Intelligence for its authentication solution, the company acquired a blockchain IoT start-up in 2018 and incorporated the technology into its service.
The company offers brands various means of authentication, such as RFID tag, QR code and serial number, with product information stored on blockchain. For the authentication process, the company provides a mobile application that customers can use. The authenticity of a product can be verified multiple times along the product’s life, including when a product changes hands, which also enables brands to track distribution of their products. In addition, in the case of identification of a forged tag, Certilogo provides a complimentary report that customers could use to file complaints and seek refund of their purchases. Click for more information.
All in all, the possibilities with Blockchain technology are endless, and SMEs certainly shouldn’t miss out on them. If blockchain is the new industrial revolution everyone sees it as, investing in Blockchain for your business would be the best business move you can make in 2021.