Network marketing, also known as multi-level marketing, is a business model that involves a pyramid structured network of people who sell a company’s products. The users in this network are usually rewarded on a commission basis. That is, members in this MLM platform get a commission every time they perform the specified task, like –
- Make the sale of a product.
- Their members make a sale of the product.
In simple words, this MLM business model involves a pyramid format of non-salaried participants who get paid whenever they or a person below them in the pyramid makes a sale.
Blockchain-Powered Smart Contract in MLM Business?
The blockchain is a platform-like technology that covers of a decentralized ledger that records, verifies, and tracks cryptocurrency transactions and smart contracts between parties.
Blockchain-based or decentralized MLM business, in turn, are peer-to-peer networks that directly connect members without any intermediaries.
Since a blockchain-based MLM business removes intermediaries, all transactions are traceable on a public ledger, demonstrating a high level of security and transparency.
In addition, blockchain technology involves smart contracts – digitally signed agreements made via distributed computing platforms like Ethereum. Smart contracts are stored publicly, preventing fraud.
If smart contracts can empower the MLM business, then there is no chance for MLM business owners to scam their members.
Smart Contracts and Blockchain
The key to these contracts is the decentralised network known as blockchain. Smart contracts use blockchain technology to verify, validate, capture and enforce agreed-upon terms between multiple parties.
Smart contracts on the blockchain allow for transactions and agreements to be carried out among anonymous parties without the need for a central entity, external enforcement, or legal system. The transactions are transparent, irreversible, and traceable.
Blockchain is the perfect environment for smart contracts, as all the data stored is immutable and secure. The data of a smart contract is encrypted and exist on a ledger, meaning that the information recorded in the blocks can never be lost, modified, or deleted.
MLM Script Software & Smart Contract Development
As one of the best MLM script software development service providers, we’re fully engaged in your MLM business success. We’ve handled a wide range of technical challenges faced by MLM businesses and know how to solve your most pressing issues using advanced technology. We specialize in custom smart contract development also. Our development team includes business analysts, designers, quality assurance specialists, and software engineers.
Benefits of blockchain-powered smart contract in MLM business:
Decentralized – Supported by users or nodes that share their computing power to the network, ensuring 24/7 availability and maintenance.
Payment and Fees – Direct payment by cryptocurrency (token), which can be exchanged for Bitcoin or fiat.
Payment Processing Time – Payments are instant and don’t need any intermediary like a bank.
Transparency & Long-term – Smart contract will exist as long as the Ethereum blockchain platform, and even the creators of the smart contract will not be able to delete or change its terms and it’s 100 % transparency.
Information Security– Data is immutable, so it can’t be deleted or changed. Validation by network prevents fraud.
Privacy– Personal information isn’t required.
Smart Contract – Digitally signed smart contracts. Contracts are unbreakable. No intermediaries required, as smart contracts are executed automatically.
