We’ve previously written about the potential for blockchain technology to revolutionize the ways in which small businesses operate. The last three years have seen the advent of many blockchain-based products that provide real-world advantages for the small businesses that adopt them. While I admit the adoption was not as broad and quick as I expected, many blockchain use cases have come to market, with many more still attempting to overcome legacy hurdles and switching costs.
We’d like to highlight a couple of blockchain business applications to illustrate the power of this technology to help small businesses overcome obstacles, boost efficiency, increase security/privacy and save money.
One of the most interesting new components of the blockchain is its ability to track and transition ownership of digital assets. This feature, implemented through non-fungible tokens (NFTs), is used to benefit digital asset sellers. NFT popularity is exploding, as creators and license holders digitize and sell their assets. It is only a matter of time before real world assets are fractionalized on chain and sold to the market of owners.
Additionally, as a small business owner, you can now provide for a better engagement with your users. For example, a busy celebrity could sell NFTs, and whoever holds one NFT at a certain time and date gets a meeting with her. Another example: NBA Top Shots is selling NFTs of video clips for short moments in NBA history (such as a LeBron James dunk) and making digital, tradable cards.
Other companies are fractionalizing artwork to sell and own. By creating NFTs for a digital work of art, many collectors, investors and fans can own—and possibly trade—a piece of the artwork. Much like owning a rare trading card, the supply of the fractionalized tokens is fixed. Presumably, the price would increase with demand.
To succeed, the legitimate cannabis industry must wrestle market share from unlicensed sellers. At the same time, cannabis consumers must juggle fears of government harassment and problematic supply from unscrupulous growers and distributors. Blockchain can help by solving many supply chain management problems, such as safety and quality assurance.
Blockchain systems can prove that companies all along the supply chain have followed standard operating procedures that comply with government regulations. For example, a cannabis farm could use the blockchain to verify and record items like origin, pesticide usage, nutrient solutions administration, sanitation, storage conditions and so forth. By supporting distributed, immutable records of compliance, the blockchain can satisfy demands from government entities, producers, distributors, retailers and consumers.
[Editor’s Note: Want to learn more about blockchain and its benefits for supply chain management? Check out this clip from our webinar Blockchain and Supply Chain.]
We’ve barely scratched the surface of current and future blockchain applications to solve problem in dozens of industries, including:
The influence of blockchain technology is exploding across the entire economic spectrum. Businesspeople increasingly understand that blockchain is not Bitcoin, but rather a much bigger concept with the power to solve problems for businesses of any size.
Additionally, as the new crypto bull market enters into its next growth phase, we will continue to see more attention and adoption of the technology, getting us closer to my original predictions.
©All Rights Reserved. April, 2021. DailyDACTM, LLC d/b/a/ Financial PoiseTM
Jordan Fishfeld is General Counsel and Partner at CoreGro, a firm that specializes in sourcing the rarest investment opportunities in global private equity and US real estate. He is also General Counsel and Executive Vice President at Hemp Africa and Board Member and Founder of The OpenFinance Network, a blockchain-based protocol and framework for the…
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