Small businesses should integrate the use of crypto into their day-to-day business practices. This comes with a variety of benefits for the company, both in terms of financial ones and in terms of saving time and adding an extra layer of security.
The simplest way to do so is to allow crypto payments. In this article, however, we’ll present a few other options that are equally useful, but often overlooked by smaller businesses. These are easy enough to implement, and they show results right away.
Loyalty Programs
Cryptos are often used as a part of a loyalty program that businesses provide for their customers. Instead of providing discounts or access to unique products or services, the businesses pay their customers and users in cryptocurrency. It’s a common practice among the best anonymous casinos, and now it’s spreading to other industries.
In most cases, companies devise a point system, with which they award points for every purchase a customer makes, and once they reach a certain amount, they are exchanged for crypto coins, which are deposited into the customer’s account.
Smart Contracts for Supply Chains
Crypto-integrated smart contracts can be used to handle supply chain transactions. A supply chain is the beating heart of a delivery system, and companies that deliver physical goods depend on it working perfectly. Smart contracts allow businesses to automate payments based on the set of conditions written into the blockchain code itself.
Since supply chains have many moving parts, smart contracts can be used so that each party is paid immediately as soon as the goods have been delivered to their part of the chain. Using smart contracts in this manner also helps with promoting punctuality and responsibility.
Storing Data
Cryptos use blockchain to store data in a decentralized fashion. The same principle can be used to store data kept by businesses, and many small companies are utilizing cryptos and blockchain, as it adds another layer of security. Companies store data about their employees and about their users and customers, and keeping this private has become a sought-after feature.
However, many small businesses are also facing a new problem regarding using blockchain in this way. This is an important feature they want to advertise and in a way charge the customer, but explaining its use cases to a layperson audience can be challenging.
Crowdfunding
Startups and small businesses often use crowdfunding to start their business or introduce a new feature. Businesses can issue initial coin offerings as a way to crowdfund their operations. These tokens represent equity in the business, and the company returns to the initial investment to fund operations before making profits.
It’s important to note that this option is only available to those who can create a marketing campaign and find the audience that would crowdfund their future efforts. In many cases, it’s for those who already have such an audience before jumping into a business venture.
Verifying Identity in a Digital World
A blockchain-based digital identity system allows users to create what’s called a self-sovereign digital identity. It’s a secure and cryptographic personal record, which is stored in a decentralized way. Instead of using third-party systems to store IDs, the users would do so via blockchain in a more secure fashion.
For companies that require a lot of personal data from their users, this presents a new feature that their customers would appreciate. It works especially well with storing assets, personal documents, or medical records, all of which are sensitive in nature and worth preserving.
Tokenized Ownership
Crypto tokens can be used to tokenize ownership over the company itself. Each coin represents a partial ownership of the company, and it provides a certain set of governing rights based on the percentage of ownership. With blockchain, ownership could be shared and managed among many owners at once.
Small businesses can share ownership between employees by using this feature, or they can expand the business by bringing in new investors in the same fashion. Since small companies often have problems with liquidity, it’s a way to bypass the issue while the business is finding its footing.
Employees Compensations
Some businesses pay their employees using crypto. It’s a way for a company to show that they are open to innovation and that they are looking for employees who share the same sentiment. There are also tax benefits for employees who receive salaries this way and hold on to them as if they are investments.
Companies that plan on doing so should make preparations beforehand and consult their lawyers and accountants, as the rules and regulations vary by country and jurisdiction, and they often change as well.
Businesses can use crypto in a variety of ways other than receiving payments in it. These have many benefits for both the business and its clients and employees. In general, implementing crypto and blockchain helps orient the company towards innovation.
