How Blockchain Technology is Helping in the Survival of MSMEs

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Since the emergence of blockchain technology otherwise known as DLT, the way businesses are run is continually influenced by it. It is the technology that helps them in the survival of most of the cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Stellar, Lumen and some others. The success of this technology on cryptocurrencies that made their values to rise from almost nothing to the present value has attracted businesses, governments, and educational setups to study its use. That led to its use in MSMEs also called Micro, Small and Medium Enterprises.

Micro, Small and Medium Enterprises are those businesses with not a big investment size which has helped in the survival of the economies of the world by providing employment to both skilled and unskilled workers, production of goods and also the export of their products. In most economics, they contribute close to 8% to 25% of the annual GDP.

The use of blockchain technology can be seen in the following areas of MSMEs:

1) Execution of smart contracts: This is one area where blockchain technology has helped in the survival of MSMEs. The advancement in this technology had made it possible for people to send fake bank alerts for a business transaction, and then carry the goods which were not actually paid for. Blockchain enables parties to satisfy that smart contract deal before it has been fulfilled and before it can be executed.

2) Identification of fake products: The proliferation of fake products in the market is actually a threat to the survival of Micro, Small and Medium Enterprises. However, the blockchain technology used by some firms like Vechain has ensured that such leakages are detected within the production processes. This had saved businesses from losing millions of dollars to the producers of counterfeit products.

3) Protection of assets: We understand in the world today, it cost a lot to register your products and assets with different copyright and image protection agencies. However, blockchain technology has ensured that a system that has an internet connection, the owner of an image and product could easily with have full protection given to their intellectual properties. This has saved business the stress of going through court processes to ascertain that a property belongs to an owner.

Having seen the relevance of blockchain technology for MSMEs survival, it can be understood that the future is clear for more profits for them.

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Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content

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