Ben Sever is a global technologist, entrepreneur, philanthropist, founder of Phoenix Portfolio Partners, and CEO and Chairman at eRemede.
We have entered an era when accepting blockchain, cryptocurrency and disruptive technologies are beyond an emerging trend, but are imperative for sustainable business. Although entrepreneurs tend to develop a one-track-mind about their sole mission, I’ve found there is a paradigm shift occurring where integrating financial literacy, software education and regulatory compliance have to top the list of necessary obsessions.
Blockchain has transcended a buzzword and is here to stay as a bedrock to financial literacy. Simplistically, implementing a decentralized and distributed ledger system means there is no single central authority controlling the data. This feature can ensure transparency and security in transactions, making it attractive for entrepreneurs who want to build trust with their customers and partners. One trend sweeping the nation is the enablement of token creation, which can represent assets, equity or utility within a business. This capability can facilitate crowdfunding and provide liquidity options for investors and stakeholders, making it easier for entrepreneurs to raise capital and manage ownership structures. Whether you’re pioneering a secure, lean business model or need to move millions of dollars with little hassle, this new-age financial methodology may be near seamless.
Financial technology thought leaders such as Gary Cardone not only provide great case studies of this financial revolution by their public usage of blockchain within their international portfolios, but many feel a duty to actively educate their global audience to the inevitable and crucial disruption to banking best practices. When titans of industry adopt, trust and educate on such a vast scale, it is time for not just innovators, but the general public to take advantage of the information age and become connoisseurs of knowledge that will change the landscape of macroeconomics forever.
As both a founder as well as investor in complex enterprise software ranging from HIPAA-compliant technology to highly encrypted financial software, I believe blockchain has moved from “an innovative approach” to an expected line-item on any global technology rollout. Beyond the ease of use, security and agile frameworks, I find that blockchain has unrivaled client-facing efficiencies as well. Smart contracts are self-executing contracts with predefined rules, which executives can automate while eliminating the need for intermediaries, reducing costs and mitigating redundancies.
Entrepreneurs who are financially literate can make informed decisions about potential investments, funding sources and partnerships, which may reduce the likelihood of making financial mistakes that could jeopardize their businesses as well. Blockchain technology is reshaping macroeconomics by introducing innovative solutions to long-standing and systemic challenges. Blockchain’s ability to streamline cross-border transactions and lower transaction costs across various sectors can foster economic growth by reducing friction in international trade and financial transactions. Entrepreneurs should prioritize educating themselves on blockchain technology as a financial tool, if for no other reason, because it represents the undeniable transformative force in the current business landscape. By grasping the fundamentals of blockchain, entrepreneurs can stay ahead of the curve, innovate their business models and tap into a rapidly evolving ecosystem that has the potential to disrupt traditional industries, ultimately leading to greater financial efficiency and competitiveness in the modern marketplace.
Adopting blockchain technology presents many potential advantages, yet also poses several hurdles and difficulties that organizations must strategically manage in order to yield maximum valuation. Blockchain networks, not built for enterprise, often face issues related to scalability and performance as their size and complexity expands. Their decentralized methodologies, by design, demand every transaction be verified and transparently recorded.
This may lead to suboptimal transaction speeds (in comparison to the lightspeed it is known for). As a renowned technology-centric go-to-market strategist and venture capitalist, in a world where suites, one-stop-shops and community ecosystems that radically shorten sales cycles are paramount, this can be viewed as a roadblock if not appropriately explained and simplistically deduced. Operating in the micro and integrating macro stakeholders is imperative.
The regulatory landscape surrounding blockchain and cryptocurrencies is ever-evolving and will continuously iterate depending on the geographical trajectory road map. Accomplishing fintech compliance, while staying abreast of existing laws, requires the utmost due diligence.
Progressive ventures still battle uncertainty over future regulations hindering planning for projects as organizations attempt to anticipate how their rules may change. Legal obstacles such as data privacy issues, intellectual property concerns and liability issues must all be carefully taken into consideration during adoption of this technology.
Each blockchain platform may utilize its own protocols, consensus mechanisms or smart contract languages limiting our efforts in creating an interoperable ecosystem; without standard frameworks, this fragmentation may inhibit adoption among various stakeholders and hinder collaboration efforts among them.
In summary, blockchain technology, financial literacy and awareness of regulatory changes can empower entrepreneurs to build businesses more efficiently, transparently and responsibly. Embracing these tools and knowledge can lead to increased innovation, improved financial management, and enhanced long-term viability for startups and established ventures alike.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here