The transformative potential of blockchain is already transforming business growth across multiple industries, and with the technology still in its nascent stage, we only see the tip of the iceberg in terms of startups’ ability to scale globally.
To say we are only starting to see the impact of blockchain is an understatement. The global blockchain market is expected to grow from an estimated value of $4.8 billion in 2022 to $69 billion by 2032, representing a CAGR of 68% in the process.
This significant growth will help companies of all sizes expand operations internationally. From next-generation financial services to advanced security measures and unprecedented supply chain management, blockchain can do it all while offering greater efficiency for startups.
Use cases surrounding blockchain’s capabilities in scaling are already showing startups the way forward to improve their digital transformation strategies. With this in mind, let’s explore the extent to which the blockchain revolution can help startups and SMEs scale their operations:
Next generation digital transactions
Blockchain will change the way businesses leverage transactions globally. Instead of being stored centrally, blockchains are distributed, immutable digital ledgers recorded in a chain of actions.
This decentralized framework means that each transaction is cryptographically protected from the network through a proof-of-work mechanism that requires a consensus to be reached for changes to occur.
As a result, businesses can use blockchain technology for peer-to-peer transactions without the need for a centralized body to verify payments or monitor irregularities. This can benefit both B2C and B2B companies looking to ensure digital transformation globally and pave the way for low-cost transactions across borders.
We are already seeing use cases emerge with blockchain technology at the forefront of borderless transactions. Companies like we.trade have helped startups and SMEs grow on an international scale ensure trade financing with lower costs and associated risks when carrying out cross-border operations.
Blockchain also helps facilitate the use of cryptocurrencies and internationally accepted digital payment methods, helping businesses avoid expensive currency conversion rates.
Perpetual security
Another way blockchain can help small businesses grow is through innovative security measures.
Since blockchain technology is decentralized in nature, the threat of cyber attacks is mitigated thanks to the complexity of its framework and the difficulty hackers have in overcoming consensus mechanisms to manipulate data.
This technology can help users protect their digital identities and also get a transparent overview of how companies use their data through blockchain.
Complete traceability
The beauty of blockchain is that it combines efficiency and automation with much greater levels of precision. This can be a particular advantage for startups where instances of human error can cause problems within scaling processes.
Blockchain transactions are handled within seconds and all changes are permanently recorded in the ledger, offering unprecedented levels of traceability within operations.
One particular area where this technology excels is supply chain management and payment automation for companies looking to manage suppliers more efficiently.
Walmart has incorporated blockchain as a component of a food traceability system with Hyperledger Fabric, which traces the origin of mangoes sold in US stores. The tracking process takes 2.2 seconds to complete, when it would take seven days without the help of the blockchain.
This traceability will help startups in many other stages of the supply chain and AP automation. For example, if your company receives a faulty component in a delivery, the blockchain will be able to identify the specific batch and area of the supply chain where the fault occurred.
Accordingly, seller payments they can be managed on a more holistic level, helping startups manage their budgets with efficiency and accuracy.
Simplification with smart contracts
Budgets can also go further for startups and SMEs with the use of smart contracts. Acting as an automated contract that can self-execute without the need for intermediaries based on meeting predetermined requirements, smart contracts can automate agreements and tasks.
This means that third parties will have less attention to the budget while your startup can continue to do so take advantage of binding agreements with suppliers, counterparties, external agencies and funding sources.
Efficiency in the hiring process
In the future, we will also see blockchain revolutionize talent acquisition and human resource management for startups.
Blockchain verification systems will be able to do this tokenization of the essential employee data such as their references and educational background, helping to optimize the assessment process and ensure unprecedented confidence in the validity of CVs.
This will pave the way for higher quality hires, reducing instances of employee churn or hiring unsuitable candidates.
Ensuring Growth with Blockchain
Blockchain technology will enable startups to go further than ever before in scaling their operations. From increased security efforts to transaction and supply chain visibility, the arrival of blockchain is set to directly boost the growth of small businesses on a global scale.
This will help drive greater business precision and efficiency that can grow industries faster and unlock the potential of international markets.
In fostering a more efficient and secure environment for startups to thrive, we will see blockchain pave the way for greater innovation across all industries, providing significant growth opportunities for all ambitious business leaders.