With the invention of Bitcoin in the year 2009, the underlying Blockchain Technology was also introduced to the world. At that point in time, the researchers and the experts could not realize the potential of the Blockchain Technology apart from cryptocurrencies. The Blockchain Technology is finding its application in many domains including the Electoral process, Healthcare industry, Supply chain management, HR industry, and also the entrepreneurship. It has opened up a whole new field of research and development. Many countries are implementing Blockchain Technology into its functional processes on a large scale and are conducting pilot projects in order to test them at the core.
Blockchain Technology is basically a Distributed Ledger Technology which is used to verify transactions. The transactions can also be events, documents, information, etc. It is mainly used to prevent the tampering of the data in the immutable ledger. These capabilities of the Technology provides it a very high security.
The Blockchain Technology as mentioned earlier, finds its application in the HR industry, specifically in verifying the identity of the job seeker. Verification of the claims done by a job seeker to HR manager is a very tedious process. Now consider a situation where all the crucial details of the employee are stored on an immutable Blockchain Ledger and are also verified by all the institutions and workplaces he has worked. Hence the lecture is distributed and verified by the institutions the hiring company needs and explicitly verify all the details mentioned on the resume. Hence the Blockchain Technology is supporting entrepreneurship by eliminating the Identity verification process.
The Blockchain Technology incorporates something known as smart contracts. A smart contract is very similar to the normal legal agreement but is a digital, online, as well as Blockchain based. All the legal terms and conditions are entered into the smart contact in the form of program code and they are executed based on certain conditions. This eliminates the use of a third party and all of the paperwork required when we use the conventional method of enforcing a legal agreement. As the intermediary would be charging some fee for himself and also the paperwork would require money, the smart contract is effectively eliminating all the unnecessary expenses. Also since the data is distributed throughout the network, either of the parties involved in the agreement or contract cannot deny to the legal terms of it. An entrepreneur is exposed to a number of agreement with its customers and enforcing them using the blockchain can help him save loads of time and money.
The incorporation of the Blockchain Technology into the supply chain management has revolutionized it completely. All the suppliers, supply their products by entering the product data onto the Blockchain and when a particular product is defective then its original supplier can be traced very easily. Here, the original supplier can’t deny about its defective product, since the blockchain ledger is completely verified by a number of nodes on the network. This helps the entrepreneurs in the process of supply chain management very easy.
The entrepreneurs face a great resistance in starting their business is due to the lack of funds and fundraising methodologies. In many parts of the world, the entrepreneurs do not have the modern facilities or the fundraising models. There are a number of hidden costs in the traditional loan transactions such as minimum deposits and the interest rates adding on to the entrepreneur’s difficulty.
Blockchain Technology will enable the entrepreneurs to raise funds from throughout the world. Here the entrepreneur would not be restricted to his geographical location and would be able to raise enough funds for his business model.
The current fundraising methods through the large investors is a very time consuming and difficult process. While the entrepreneurs don’t even find time for the improvements in their business, it is impossible for them to allow time for the fundraising. In fact, fundraising from some of the venture capitalist requires a lot of travel, paperwork, meetings, and back and forth emails which can eat up months together before anything is finalized.
With the already verified Blockchain network, the venture capitalist can release funds within a few minutes. This will effectively increase the efficiency by reducing all the friction in the process.
The shipping and the Logistic industry has been completely transformed by the Blockchain Technology where at each stage the product is shifted, the Ethereum based smart contracts eradicates the need of the freight brokers which are usually expensive.
The blockchain technology is effectively being applied in fields other than the ones related to transactions. One such example is the electoral process where the whole voting process is made transparent to the public. Each and every vote added is stored on an immutable ledger which cannot be tampered with.
The Healthcare industry is completely transformed where the earlier records of the patient’s diagnosis are stored on a Blockchain which is already verified and easily accessible.
In short, the Blockchain Technology is opening up a new of ocean of opportunities for the entrepreneurs to bring their business models into life.