Articles & E-Books


Blockchain for Small Business: Stay Alert for Changes Ahead

May 07, 2019

Blockchain, cryptocurrency, digital tokens. For small business leaders, it can be tempting to view these innovations as big-business concerns, light years away from impacting Main Street America. And in some sense, yes, the technology is still years away from disrupting the small business market. But changes will be coming.

We’re at the outset of what’s being called the “digital asset revolution.” Like the information technology revolution before it, blockchain will fundamentally transform the business norms we know today through the digitalization of assets.

Governments and business spent $2.1 billion on blockchain implementation in 2018, and that number will leap to $9.7 billion in 2021.[1] Meanwhile, emerging markets may come out ahead as technology innovators, as these countries are increasingly turning to blockchain and cryptocurrencies to solve basic banking challenges and even create a universal identity.

Eventually these innovations will come to bear for small business in the U.S. In the same way Netflix swept away Blockbuster, Uber devastated the taxi industry and Amazon revolutionized retail, blockchain innovations will disrupt the market — somehow, someway.

Business leaders, in companies of all sizes, need to stay aware and informed of what’s coming.

A Short Primer on Blockchain

If you’re struggling to wrap your head around blockchain, you’re certainly not alone. The technology, which exists only in a digital sense, is perhaps best described as an accounting ledger.

On the blockchain, transactions are verified and then permanently added to the record. You cannot change a blockchain record; you can only add to it. (Essentially, you have “blocks” of data strung together in a “chain.”) Permission tools control who can view and add to your information on the blockchain. But no one can delete or edit an existing block.

While most databases are housed and managed by one database “owner,” the blockchain is a distributed database. Because data is stored, duplicated and synced across a wide network, it’s considered un-hackable. You can’t tamper with the data, because it isn’t held in just one place.

Early Uses and What’s Ahead

The first applications of blockchain involved cryptocurrency. Blockchain eliminated the need to use the traditional banking system to exchange value.

In its next iteration, blockchain technology is being applied to other data exchanges, such as executing agreements and automating certain business processes. Blockchain can be used to record transactions, verify identity and create a permanent record of a contract, without involvement from financial services or lawyers, or perhaps even title companies.

By creating a verifiable, un-editable record — one that exists outside the world’s established financial and recording systems — business networks can create whole new ways to exchange goods and services with greater security and lower costs.

Even within the traditional bounds of business, blockchain has significant promise to lower security costs and make it far more efficient for partner entities to reconcile records and make sure everyone’s data is in sync.

Many business software providers — like QuickBooks, Intacct and NetSuite — are looking at how blockchain could integrate with their systems and make business processes easier for small businesses.

One tool that’s already entering the market, to some extent, is the use of smart contracts. Smart contracts, as built on the blockchain, can automate workflow. When party A provides an agreed upon service to party B, payment is automatically triggered, eliminating the need for companies to invoice and issue payment. You can read more about smart contracts and their benefits here.

What You Can Do Right Now

As a small- or medium-sized business owner, your role right now is to stay informed. Encourage your local chamber of commerce and industry networks to hold training sessions. Talk to your technology vendors. Read online resources. Subscribe to the Chamber of Digital Commerce, a blockchain advocacy group that publishes a regular newsletter on blockchain policy and emerging government regulation.

And, look to Wipfli for education and support. We’re doing board and leadership education and public presentations. Wipfli is an executive member of the Chamber of Digital Commerce, and we co-chair its Digital Accounting Consortium. What’s more, we’re actively helping businesses develop and implement proofs of concept to leverage blockchain and digital currency platforms.

Blockchain is coming to your business — it’s just a matter of time. Contact us to stay up to date and ahead of the shift.

[1] Michael Shirer and Jessica Goepfert, “New IDC Spending Guide Sees Worldwide Blockchain Spending Growing to $9.7 Billion in 2021,” IDC, January 2018,, accessed April 2019.