The sudden outbreak of novel coronavirus pneumonia has disrupted the normal operation of the whole social system, and many industries have been trapped in a nearly stagnant state. This undoubtedly brings many problems and inconvenience to the public and related enterprises.

Due to the strong infectivity of the epidemic, the vast majority of the public are inconvenient to go out, and most of the public transport stops operation. It is difficult to carry out business such as certificate approval, loan financing, etc., which are heavily dependent on the flow of people. Especially in the environment of many enterprises unable to make ends meet and cash flow drying up, this has a huge negative impact on the economic operation environment.

The epidemic is like a pause button for fast-moving start-ups, and everything comes to an abrupt end. Affected by the epidemic situation, Party A’s strategy shrinks and cuts off the project cooperation; The hardware manufacturers in the epidemic area were forced to shut down and isolate, and the logistics was blocked; The financial support for cooperation that was originally discussed was suddenly cut off

How does blockchain help small and medium enterprises tide over difficulties

Small and medium-sized enterprises have become the most affected group. Catering, tourism, logistics and many other industries have been seriously impacted. A large number of manufacturing factories are also difficult to start. Many enterprises are facing the dilemma of making ends meet. The famous catering enterprise Xibei also said that even if the loan can only guarantee the survival of three months, it can be seen that many enterprises across the country will face the problem of increased liquidity risk, Their own survival is facing severe challenges.

At present, large companies have set foot in the blockchain. What should small and medium-sized enterprises do without a strong technical team? As the most active and dynamic part of today’s business atmosphere, China’s small and medium-sized enterprises are of great significance in promoting economic development, GDP growth and national competitiveness. As a new force of national economic growth, small and medium-sized enterprises will always encounter all kinds of difficulties in the process of development. How can they break through the “bottleneck” of development and become bigger and stronger quickly?

How should real enterprises embrace industrial blockchain?

Enterprises should adopt a pragmatic and skeptical attitude, and structurally narrow the scope of choice. The first step is to judge whether the application scenario has great practical value. Only starting from the real needs and pain points of customers can we avoid the so-called developer trap and really play the role of blockchain in solving consumer friction.

For business development, build high fit blockchain technology. Nowadays, the enterprise level blockchain technology must be developed around the business scenario, so the commercial network needs to include the peer-to-peer architecture of market participants and a consensus agreement between partners. It aims to promote the cooperation of all parties and jointly build the underlying technology of enterprise level distributed ledger based on blockchain technology, which is used to build industry applications and platforms supporting business, so as to support a variety of business application scenarios. Enterprise level commercial blockchain technology network is more suitable for the use of alliance chain and licensing system.

At present, most of the mainstream blockchain technology applications in Europe and the United States are industry chain, that is, the upstream and downstream of an industry, or the open blockchain technology built by core enterprises. Process of foreign exchange deposit and withdrawal From this point of view, open Ledger has the potential to become a major commercial blockchain technology platform in the future, and it is also an important development direction to increase enterprise cooperation opportunities and efficiency. It is worth the time and energy of technical developers to study and research! Blockchain can create trusted information audit trail.

In the future, blockchain + sharing will be applied in more and more industries. As the essence of blockchain is consensus autonomous community, upstream and downstream enterprises can form alliances to form sharing, enterprises in the same industry can form alliances to form sharing, and cross industry enterprises can form alliances to form sharing.

Opportunities for SMEs

Enterprises often focus on short-term cash flow business in their daily operation, and they are not determined to break the business comfort zone. This time, they can try their best to turn crisis into opportunity. In the past, the enterprises that have been mainly engaged in offline business can try to develop online business, while the enterprises that mainly engaged in domestic business can take advantage of the opportunity to test the overseas market. Ordinary entrepreneurs can look for market opportunities in this area.

For Internet enterprises, at this stage, “distributed office” and “online office” have become the first choice of the company’s operation mode under the influence of the epidemic, which is consistent with the distributed cooperation advocated by the blockchain. However, this change of office mode also brings problems in trust between enterprises and employees, information synchronization between teams and so on.

In view of this, blockchain technology can provide solutions. Based on the characteristics of information transparency of blockchain technology, it can enhance the efficiency of information sharing within the team; Can effectively avoid malicious tampering with information, or accept the wrong information. At the same time, through the time stamp characteristics of blockchain, the information on the chain can be true, reliable and traceable. Once there is a problem in a certain link of work, we can quickly trace back to the source of inquiry to achieve accountability.

In the future, the “boss sharing” mode may be realized. The boss of a certain industry can share his intelligence with another enterprise across the industry, and the shared action is recorded in real time, and the boss can also get the corresponding incentive. This kind of information sharing is not only limited to the boss’s personal social circle, to a certain extent, it gets through the information interaction between enterprises and industries, and reduces the cost of information collection and enterprise development.

Small and medium-sized enterprises can make use of the characteristics of blockchain technology, such as tamper proof and clear traces, to make their enterprise operation data flow level by level on the blockchain, so that banks can more easily evaluate the enterprise’s capital and business status and give financing, greatly shorten the time and cost of enterprise financing, and more quickly restore normal production and operation.

It has to be said that the “SARS” once made more people recognize the e-commerce, and the “Wenchuan earthquake” revitalized the insurance industry. This “new coronavirus” will inevitably bring new “opportunities”. The epidemic makes it easier for people to accept and explore new things. At this time, it may be an opportunity to introduce blockchain into the mainstream market.

What’s the impact?

Small enterprises usually only expand according to the scale, and peripheral businesses such as products or services that support the business also need to develop, otherwise there may be bottlenecks. While this usually means hiring new employees or signing contracts with other service providers, blockchain has another solution. Smart contract is a more economical choice, which can help small enterprises to simplify the process cheaply and keep their business developing normally. They use blockchains to create, inspect and execute contracts between users. Whether it’s Invoicing, paying employee bills, settling interest expenses, developing insurance policies, processing inventory, completing new transactions or any other transaction activities, smart contracts can have a positive financial impact on small businesses.

Smart contracts can also help small businesses that need cash flow to ensure timely payment and collection, avoid cash loss, save costs and make prices more competitive. Ledger entries make these agreements irrefutable and universally enforceable, thus avoiding the time wasted by small businesses in submission, validation, arbitration, and legal support. They are also autonomous. It is a wise and sustainable move to establish smart contract function between enterprises and their many partners. It used to require people, middlemen, expensive software licenses, and precious time, but now it doesn’t need anything. Many business processes can be easily replaced at a low cost. Keep the company efficient and competitive.

With the indirect reduction of costs, it is a major advantage for small enterprises hosting services on the blockchain, but security and transparency will also become the value-added benefits of enterprises. The public key and private key system protected by a layer of Encryption ensures that the participants of blockchain services can be verified by these same services without exposing their most sensitive personal financial or identification information. This is a boon for companies that no longer have to take on the risk of processing large amounts of personal data.

Blockchain is a new technology, but the existing infrastructure still needs strong support. As it gains more stability, trendy SMEs will come up with new ways of doing business to integrate their own value propositions. To this end, the biggest obstacle is to let enterprises build blockchains and push customers to adopt these solutions. Blockchain represents a rising trend. I hope domestic enterprises will not miss this golden opportunity.

Editor in charge: CT

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