Is Blockchain good or bad for Small Business
First we need to understand what is Blockchain? Blockchain as its name defined a chain of block. It provide a secure transaction of digital currency. It is used to contain the record of every transaction with encryption method. Which helps to keep our data more secure. Blockchain maintain the transparency between its distributed systems.
Now question is arising that what it contain in its block. It contains the encrypted data which is used for transaction. The data is what you purchased and paid to a vendor. It uses some techniques to keep it secure. These technique include peer-to-peer network and hashing algorithm. It uses a mining process which helps for validation of transaction.
We understand what Blockchain is, now move towards that is it good or bad for small business. As we know that Blockchain keep more secure our data. So it's good for small business. It provide the privacy as well as security and transparency which is beneficial for business. As it organized into blocks and every block is inter linked. So it is consume less time to track information.
Points that make Blockchain good for Small Business
For purpose of security it is good for small business. As it provide the encrypted data which turns it to more secure. It make a digital identity of every transaction. These digital identities are secure and efficient. As well as these helps to reduce fraud. Basically Blockchain using a private key. This function is performed on every transaction signed by correct private key.
Blockchain uses a chain of block and each block is assigned by different private keys. When any transaction has been done it passed form every transaction. So every time a new private key is generated which make it more secure. At the recipient side a decryption key is used to receive that transaction. So the recipient get the information send by the sender. All these things make secure to our business.
Supply Chain Communication
For providing better communication Blockchain use supply chain method. It offers the benefits of cost and traceability. Here a question is raised that how Blockchain helps to supply chain communication. As we know that it provide the facility of chaining system. And also it contain the record of every transaction. Means it works as ledger. These records helps to show the real value and state of the products to the stakeholder.
These are the main points which make it good for small business. Apart from these Blockchain also provide the service of cloud free data storage. It is potentially beneficial for payment and money transfer.