The transformative potential of blockchain is already transforming business growth throughout several sectors, and with the technology still in its fledgling stage, we’re only seeing the tip of the iceberg in terms of its ability to scale startups globally.
To say we’re only beginning 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 businesses of all sizes scale up operations on an international level. 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 the scaling process are already showing startups the way forward in leveling up their digital transformation strategies. With this in mind, let’s explore the full extent to which the blockchain revolution can help startups and SMEs scale their operations:
Next-Generation Digital Transactions
Blockchain will change how businesses leverage transactions globally. Rather than being stored centrally, blockchains are distributed digital ledgers that are immutable and recorded on a chain of actions.
This decentralized framework means that each transaction is cryptographically protected by 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 with no need for a centralized body to verify payments or monitor for irregularities. This can benefit both B2C and B2B businesses seeking to secure digital transformation globally and pave the way for low-cost transactions across borders.
We’re already seeing use cases emerge with blockchain technology at the forefront of borderless transactions. Firms like we.trade have helped startups and SMEs grow on an international scale by securing trade financing with fewer associated costs and risks when trading across borders.
Blockchain also helps to facilitate the use of cryptocurrencies and digital payment methods that are accepted internationally, helping businesses avoid costly currency conversion rates.
Perpetual Security
Another factor where blockchain can help small businesses scale is through innovative security measures.
Because blockchain technology is decentralized by nature, the threat of cyberattacks is mitigated because of the complexity of its framework and the difficulty hackers encounter in overcoming consensus mechanisms to manipulate its data.
This technology can help users protect their digital identities and also gain a transparent overview of how businesses are utilizing their data through the blockchain.
Complete Traceability
The beauty of blockchain is that it unites efficiency and automation with far greater levels of accuracy. This can be a particular asset to startups where instances of human error can cause issues within scaling processes.
Blockchain transactions are brokered in a matter of seconds, and all changes are permanently recorded on the ledger, offering unprecedented levels of traceability within operations.
One particular area where this technology excels is in supply chain management and payout automation for businesses seeking to manage vendors 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 tracing process takes 2.2 seconds to complete, when it would take seven days without the help of blockchain.
This traceability will help startups throughout many more stages of the supply chain and AP automation. For instance, if your business 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.
As a result, vendor payouts can be managed at a more holistic level, helping startups to manage their budgets with efficiency and accuracy.
Streamlining with Smart Contracts
Budgets can also go further for startups and SMEs with the utilization of smart contracts. Acting as an automated contract that can self-execute without the need for middlemen based on the fulfillment of predetermined requirements, smart contracts can automate agreements and tasks.
This means that third parties will command less of a budgetary focus while your startup can continue to leverage binding agreements with suppliers, counterparties, external agencies, and funding sources.
Efficiency in the Hiring Process
We’ll also see blockchain revolutionize talent acquisition and human resource management for startups in the future.
Blockchain verification systems will be capable of tokenizing essential employee data like their references and education history, helping to optimize the vetting process and deliver unprecedented trust in the validity of CVs.
This will pave the way for higher-quality hires, reducing instances of employee churn or the hiring of unsuitable applicants.
Securing Growth with Blockchain
Blockchain technology will empower startups to go further than ever before in their scaling operations. From greater security efforts to transaction and supply chain visibility, the arrival of blockchain is set to directly benefit the growth of small businesses on a global scale.
This will help to drive more business accuracy and efficiency that can grow industries faster and unlock the potential of international markets.
In driving a more efficient and secure environment for startups to prosper, we will see blockchain pave the way for greater innovation across sectors, delivering meaningful growth opportunities to all ambitious business leaders.
