Usually termed as a distributed ledger technology, blockchain happens to be a technology providing organizations with a secure and transparent way to store information in ordered records.
It is also linked with digital tokens of all kinds and initial coin offerings. However, with all the hype and buzz around money being gained from the digital token sale, there happens to be a developing misconception regarding the actual importance of building businesses.
It is something that requires acknowledgment by entrepreneurs who are looking past the hype of cryptocurrency and concentrate on the underlying technology of blockchain for creating new value. Below we discuss five points for entrepreneurs looking forward to optimizing their business with the technology of blockchain.
Focus on Client Management
Focusing on customer thinking is essential when looking forward to optimizing your business with blockchain. Blockchain happens to be developing business processes and that impacts the entire customer management lifecycle. it leads to ultimately creating a value proposition with the client lifecycle in mind.
Concentrate more on Real Business than Initial Coin Offerings
Make sure to learn more regarding the technology of blockchain before shifting on the bandwagon of the initial coin offering craze. As far as initial coin offerings are concerned, make sure to focus on it when you consider it to be appropriate.
Also Read: 8 Common Myths About Blockchain and Cryptocurrency That No One Ever Told You
Solve Business Problems with Blockchain Solutions
Rather than latching onto cryptocurrency buzz, entrepreneurs should look forward to solving real business problems. Entrepreneurs should not be attempting to make quick money on initial coin offerings. Usually, investors can evaluate this correctly and will look forward to doing nothing in the long run if they suffer from losses. Instead, blockchain organizations need to address business issues that are readily solved with blockchain technology solutions.
As far as the term is concerned, the system of blockchain is organized within blocks, thereby making each one hold a unique timestamp that one can link back to the earlier block within a chain of events. It happens to be truly beneficial for business sectors whose bases remain in their ability to trace data by event and time.
Supply chain management is one good example of blockchain technology applied in the real world. Once the information has been recorded within a block it cannot be transformed retroactively. They indicate accuracy in transaction verifications.
Do not Launch your Business as a Token
Blockchain technology has witnessed immense growth with the rise of cryptocurrencies and the role of this technology as a digital public record of accounts has proven to remain foundational as far as the success of Bitcoin is concerned. But, the timestamping server and the transparent peer-to-peer network happens to be different from cryptocurrency. One can be considered as a database and the other is a form of money. Keeping this in mind, your business needs to be centered around problem-solving.
A business can only be made that is concentrated on monopoly money. For example, a token can be considered as a feature of blockchain business, not a product or business. You cannot develop your business concentrating on the business feature without the product itself.
There are too many examples of organizations that launched the business as a feature, thereby solving only a particular part of the problem but not the entire problem holistically. A digital utility token can only be utilized to pay for services and goods that are being marketed by organizations. As far as the value proposition is concerned, you need to have a solution as a foundation of your business.
Consider Streamlining Accounting and Preventing Fraud
Initially helping in preventing fraud within the banking sector, blockchain can also be utilized for media buying. As per research, fraud claims are approximately $42 billion from advertisers. The technology of blockchain behind crypto can decrease click fraud, thereby facilitating marketing leaders to mental spending while restricting fraud.
Make sure to streamline accounting practices in various areas of your company other than advertising spend. Blockchain can lighten the pressure for financial auditors indicating that they can get more time to concentrate on anomalies. Overall, the transparency of blockchain technology provides visibility to each transaction concerning approved users, and this might decrease work on the auditors’ part when it comes to validating and sampling transactions.
Wrapping Up
With the potential to disrupt approximately every industry and solve the greatest challenges of your business, the applications of blockchain can help make your business more transparent and secure. By implementing new solutions from this technology strategically, you can be more prepared for upcoming situations. Thus, make sure to apply the key hacks for businesses if you are an entrepreneur.
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