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How can startups tap into the benefits of blockchain for success?

    Among the many important events that the digital currency and blockchain market witnessed during the year 2020, large companies, institutions, and various organizations had a great role in improving the image of these technologies and convincing a greater number of users to try them, as several technical and non-technical companies invested millions of dollars in digital currencies and projects Different blockchains, but companies and startups are still a bit far from riding this wave.

    In fact, emerging companies have a greater opportunity to adopt blockchain in many areas, as they can easily benefit from it and include it with its various services when compared with large and old companies that have traditional systems that make the process of adopting these technologies difficult today, so in this article, we will talk about the most important aspects that can startups benefit from blockchain, so stay tuned with us to find out.

 

Facilitate the process of receiving and sending payments through digital currencies

    Most companies around the world rely on traditional payment solutions through banks and electronic payment services, and although they are not that bad in many cases, certain circumstances make relying on these solutions useless, especially when the startup has remote employees. From different countries or even from different regions within the same country, where many problems and challenges appear that may hinder the money transfer process.

    The most prominent example of this is the fees that companies or employees may have to bear when transferring across borders, as well as the time required to complete the process, which may reach days when wire transfers are approved. To solve this problem, digital currencies can be relied on as a basic method of payment, which can be easily accomplished when the company is in its early stage where it can create the necessary infrastructure to achieve this.

    Sending money via digital currencies saves a lot of effort and time in fact, as well as many other blockchain advantages in this field, such as low fees and reducing the need to rely on any intermediaries or third parties to achieve this, and there is another benefit to adopting these currencies in terms of For companies that need to receive payments from their customers, as digital currencies provide them with an easier and safer way to achieve this and give a positive view of the emerging company in terms of its adoption of modern technologies.

 

More transparent and reliable agreements with smart contracts

    It is not possible to talk about the uses of blockchain with startups without mentioning smart contracts, as it comes in digital form that can be automatically executed with a lot of customization options according to the need of each company and each client as well, and thus the need for third parties and lawyers to organize agreements and sign the many contracts that they make Companies usually, and given the fact that these contracts are held on the blockchain, are secure and reliable and cannot be easily tampered with and hacked.

    Smart contracts can be applied between different companies when they want to conclude deals or buy raw materials and obtain specific services, and they can also be used between customers and the startup itself as well, as these companies have a greater opportunity given that most of their customers will deal with them for the first time, which gives them the preference in convincing the customer In this way, in addition to the ease of concluding employment contracts also between employees who want to join according to certain conditions.

 

Supply Chain Management Systems

    Blockchain is distinguished by its ability to keep records, verify their validity and ensure that they are not modified or tampered with, which gives it a great advantage to be effective in the field of supply chain management that includes managing a lot of records and information related to how the product is manufactured, its source, costs and the materials used to manufacture it, and some blockchain platforms have started working in this field like the popular R3 platform has greatly simplified this process today.

    Most of the major companies adopt their own supply chains and systems that they have used for years, and for this reason, the move to blockchain is more difficult for them compared to startups whose options are wider in front of them, so that they can save costs and provide a higher level of transparency to their customers that they must trust and attract them. Towards it, especially during It's first period.

 

More effective advertising and marketing campaigns

    The way to take advantage of blockchain in marketing and advertising is not actually straightforward, as most companies will not have the ability to adopt this technology on their own for that, but an alternative option is to deal with one of the advertising platforms that mainly use blockchain in their work. As this will provide start-ups with many new and useful blockchain benefits that are difficult to obtain through traditional advertising agencies.

    Blockchain helps to keep and secure complete records of how users deal with ads in real time, so companies will be able to know the interests of their potential customers with many details about how to improve their services as well, in addition to the possibility of saving some money due to the effectiveness of blockchain in this area.

 

Ease of attracting a lot of clients

    In general, startups are characterized by their focus on modern technologies and revolutionary solutions in their field of work, as this is their first goal and the main factor in persuading investors to finance them and customers to try their services, and thus the company's adoption of blockchain technologies on a large scale and its clarification of this will improve its image in front of the public especially the group of motivated youth Towards any modern technology and there is still a great opportunity today for these companies to do so, given that blockchain is still classified as a recent technology.

 

Adopting better cloud storage solutions

    Whatever the field of work of the startup, it will need to deal with a provider of cloud services and rely partially or completely upon according to each company, which is sometimes considered a problem given the high costs of these services and the presence of a few companies that control this field in a way that makes them impose any conditions you want, in addition About the security and privacy problems that come with these services as well, but with blockchain technology there might be a simpler and much cheaper solution than that.

    Decentralized cloud storage platforms based on blockchain are starting to spread somewhat, and although they are still available on a small scale and cannot provide the high performance and speed offered by the central platforms of Google, Microsoft and Amazon, startups sometimes may not really need all of them. That, which makes blockchain a better, safer, and cheaper option.

 

Easier ways to obtain the necessary financing

    All startups depend on external funding sources for the most part, which may include venture capital investors, angel investors, and bank loans as well. The problem with these financing methods is that they impose some conditions and restrictions on how the company operates and may affect it negatively, especially for investors who will own a share of the company as a result of financing as well.

    Blockchain can provide some appropriate solutions here by financing using digital currencies through ICO and IEO campaigns as well, where the company issues a new currency and sells it to investors to obtain the necessary financing away from the traditional methods and its many conditions. The problem with this method is that it may not be permanently effective if the company's field of work is not related to technology, but it is still considered an easy method that may be the only solution for many today.


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