Blockchain technology to help the MSMEs
MOST PEOPLE are familiar with blockchain through its use to enable the functioning of virtual currencies, for example, bitcoin, etc. Now, the use of blockchain technology has proliferated, with applicability beyond just virtual currencies and transfer of money, and is being applied to other processes that have been helping small businesses around the world increase their efficiency.
REDUCE ISSUES WITH VALIDATING IDENTIFY
Blockchain can be used to validate the identities of new or existing business partners in an expanding international supply and value chain. Blockchain can also be used to validate the skills or attributes of employees and constantly track and monitor their output, productivity and efficiency to understand their contribution to the collective goals of the business.
VALIDATE PRODUCTS
Similar to its use to validate people’s identify, attributes and business interest, blockchain can be used to validate and certify products and services. The use of blockchain technology is increasing in validate, check, monitor and balance the backward linkages, forward linkages and supply chains of MSMEs to improve the functioning of their business processes. It allows you to track where each component of your product is coming from, what time, and what quantities.
For example, you manufacture roots drinks; you must purchase your ingredients from different suppliers that are all over the island or the world. You log in with your pimento supplier, your ginger, your nutmeg, your vanilla suppliers, the supplier of the empty bottles and covers, etc, the ledger is open to everyone and the checks and balances on your supplies are instantaneous.
TRACK AND CLEAR SHIPPING
Importation and exportation of intermediate and final goods are often overcrowded with bureaucracy and paperwork that minimise the efficiency of these processes. The use of blockchain to check and balance processes, including lead time, departure and arrival times, as well as instant notification of delays and changes to your order is increasing globally. MSMEs in developing countries can also use blockchain for their processes to minimise handicaps in tracking and clearing shipping so as to increase efficiency of their business processes.
STORE AND PROTECT ASSETS
Blockchain technology can be used to protect your assets, including intellectual property. Blockchain can also be used to minimise the possibility of theft and fraud in the ownership, safekeeping, sale and transfer of assets, including your intellectual property. Digital assets can also be stored and protected on a blockchain platform.
PROCESS SMART CONTRACTS
Blockchain technology uses many blocks within a chain of transactions that must be certified by the parties involved; as a result, bockchain technology can assist to improve smart contracts between parties. The process includes triggers to prompt contract events, for example, to execute events before due dates and make payments, etc.
WHAT IS THE PROCESS?
In order for companies to increase output consistently, they must improve the efficiency of their production processes. This can be achieved through increased efficiency in the forward and backward linkages of these companies, which can improve through the use of blockchain. These companies can integrate and specialise in complementary goods through the use of blockchain technology to ultimately increase the aggregate output. If a company, for example, makes more shoes, they will demand more leather, more cloth and other inputs. Likewise, the farmer will have to raise more cattle to supply leather; likewise, the trader will sell more cow-related farming products, and so on.