Disruption: How Blockchain will change entrepreneurship

At some point, you would have come across the word Blockchain on the internet, and we wouldn’t be surprised.  With the skyrocketing value of Bitcoin and other cryptocurrencies that rely on technology, there must be some way to control the transactions.  

Blockchain, when broken down is a simple concept, though things can get rather confusing the deeper you delve.  This technology, which was invented to power Bitcoin, is now being used for everything from Background checks to copyright protection.

To simplify the matter, in the language of cryptocurrency, a block is a record of transactions.  This could include any kind of information such as medical data, the location of cryptocurrency and even voting records.  Once each block is completed it is added to a chain, creating a chain of blocks: a Blockchain!

If you own any cryptocurrency, what you essentially own is the private key to its address on the blockchain.  This key allows you to manage, withdraw or spend your currency. All information on the blockchain is also publicly available. So, and all transactions are instantly visible to everyone. 

Got it?  Good!  What does this mean for entrepreneurs though?  How can startups across the world benefit from this new technology?  

Easier access to capital and funding

A problem that faces most entrepreneurs is finding the capital they need to raise to get their projects off the ground.  The costs associated with traditional loans can be astronomical, making the challenge of starting a business even more difficult.  

This is where Blockchain will come in.  This technology allows any entrepreneur from anywhere in the world, at a minimum, gain access to funding.  Digital currencies, like Bitcoin, operate and exist independently of geographic location.  In straightforward terms, everyone can accept and send cryptocurrencies without any hidden fees or exchanges.  

Automated Legal Agreements

Because Blockchain is essentially a “smart contract”, entrepreneurs would be able to complete legal agreements with suppliers and clients faster, as the delay of human interaction is removed.  How many times have you waited for someone to sign and send back an important document?  

Blockchain will likely remove this irritation and delay from businesses that have well defined their terms want to take part in transactions, without the traditional delays of waiting for additional approvals and signatures.

Supply Chain Verification with Blockchain

The possibilities that blockchain presents when it comes to the supply chain, will change everything.  Even though most businesses know who they are buying from, they do not always know who the vendor’s suppliers are.  So, when there is a delay, everyone is left in the dark.  By using blockchain, you would see who the original supplier is, and be able to identify any problems which may arise in future dealings.

Also, due to the transparency of the information being on the public domain, blockchain will also help in verifying things like ethical sourcing, avoiding counterfeit parts, and ensuring against child labour practices – taking the nightmare of uncertainties away from businesses.  

These examples are just the tip of the iceberg when it comes to blockchain.  This technology is set to empower businesses and will enable people from all around the world to take part in easier, ethical and profitable transactions. How do you see blockchain benefiting your business in future!

Want to learn more? Join us for  MEET… Bitsoko on the 12th of February to find out more about Bitcoin and Blockchain.