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Right now, as you read this material, the evolution of the global economy, business, and, in particular, network marketing is taking place. Technological trends are shifting towards innovation, and more and more MLM companies are trying to implement blockchain solutions into their processes. In this article, we will discuss when it is worth implementing blockchain in business, and when it may be inappropriate or even risky.  What is Blockchain  Blockchain (English blockchain) is a decentrali

Blockchain in network business. How it is applied and why it is not always appropriate

Blockchain in network business. How it is applied and why it is not | MLM Guide 2025

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FlawlessMLM is a leading provider of software development and consulting services for network marketing companies. With over 20 years of experience since 2004, we have launched more than 400 successful MLM projects globally.

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FlawlessMLM

Flawless Group

FlawlessMLM brand represents excellence in MLM software development and consulting since 2004

Founder of FlawlessMLM and Flawless Group. Expert in marketing, sales, and business consulting with over 20 years of experience in launching and managing successful MLM projects and corporate software solutions.

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Ivan Shaulskiy

FlawlessMLM provides comprehensive MLM software development, consulting, and business solutions for network marketing companies worldwide.

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Right now, as you read this material, the evolution of the global economy, business, and, in particular, network marketing is taking place. Technological trends are shifting towards innovation, and more and more MLM companies are trying to implement blockchain solutions into their processes. In this article, we will discuss when it is worth implementing blockchain in business, and when it may be inappropriate or even risky. What is Blockchain Blockchain (English blockchain) is a decentralized technology that helps protect assets (tangible or intangible) from being copied, altered, or deleted.In other words, blockchain is used for secure data storage to prevent their substitution or modification. Blockchain has significantly modernized the financial sector, but in general, it is applicable in completely different niches. Prospects of Blockchain Technology Looking at the dynamics of blockchain adoption, we can forecast its future. Literally before our eyes, the rules of the game are changing - the global economy is actively digitizing and decentralizing, digital assets are increasingly being used (from tokens to stablecoins), and so on.We already see that demand for decentralization is growing rapidly - these platforms are attracting the attention of consumers and venture capitalists. We expect that soon: - there will be a significant increase in the number of blockchain startups;- new business niches will emerge, while existing ones will be modernized; - some corporations will log their critical data in the blockchain;- the speed, quality, and bandwidth of blockchain networks will increase. Tokenization of the network project As of the end of 2020, more than 2300 American companies, including network ones, were favorably disposed towards digital currency and accepted payments in it. Every day, more and more organizations decentralize their operations, raise crypto investment rounds, and conduct transactions in cryptocurrency.After analyzing several cases of blockchain integration into MLM projects and their tokenization, we have drawn the following conclusions: 1. By integrating blockchain and cryptocurrencies, you will expand your influence on partners and clients. You will attract the attention of new audiences - people who own digital assets and are still looking for projects that accept crypto payments. 2. Loyalty to cryptocurrencies provides access to crypto capital pools. Tokenization has opened up opportunities that fiat currency does not have, hence the emergence of cryptocurrency crowdfunding- ICO (Initial Coin Offering or crowdsale). In addition, venture investors have already tokenized a certain portion of their capital. 3. More and more product suppliers and consumers prefer cryptocurrency payments. Sooner or later, your business will need the ability to transact in tokens to maintain loyal relationships with partners and customers. In essence, cryptocurrencies are a great alternative to cash, which steadily depreciates due to inflation. But even here you need to consider the risk of market volatility. What are the risks of implementing blockchain. What to pay attention to Deciding to implement blockchain and cryptocurrency in your business should be done thoughtfully, carefully considering all possible risks and carefully studying contractors.Before deploying and integrating decentralization, discuss with the developer the following question: 1. Commission fees. Block producers will operate only through commission fees. Usually, this falls on the company's shoulders, as users already pay for cryptocurrency transfers in the blockchain, for the gateway work of the payment system, etc.Discuss in advance what commission will be hidden from users (for example, "for recording information in the blockchain"), but open to project founders. 2. Mechanism for accepting and withdrawing fiat funds. When a company accepts payments in cryptocurrency and fiat simultaneously, there is a risk of possible manipulations - in this case, the complete blockchain decentralization chain is broken. The same applies to fund withdrawals - decentralized withdrawal can only be ensured for cryptocurrencies.3. Transparency of financial statistics. Full decentralization implies openness and accessibility of information about all transactions - company operations, financial statements, wallet balances, and all movements within them. Be prepared for the fact that this data will attract excessive attention from auditing organizations and competitors. 4. Complexity of manual changes to the marketing plan. Decentralization implies that changes to the marketing plan are made only after approval by the community - the company's partners. This affects the speed of implementing changes compared to centralized projects. This is particularly relevant when introducing additional temporary and seasonal bonuses or, for example, bonuses for promoting new products. The use of blockchain significantly increases the cost and slows down the implementation of these changes - the company loses flexibility.5. Cost of implementing modifications. By default, a blockchain solution will "hit the wallet" harder than a centralized solution. Moreover, the project's initial cost may seem attractive in some cases, but extensive and costly modifications will follow. Implementing any changes will become significantly more challenging because the principle of decentralization needs to be maintained. Implementing modifications and integrating them with the blockchain takes more time, and blockchain specialists, whose salaries are already significantly higher than those of regular developers, are almost always in short supply. How to Integrate Blockchain Without Risks The FlawlessMLM team has created and successfully tested the most profitable model for implementing blockchain in business - a centralized software (platform) where blockchain is used as a tool for logging critical data (e.g., for reward allocation or distributor structure placement). The decision on which data will be considered critical is made by the client (together with the FlawlessMLM development team) during the technical specification discussion stage.Logging integration does not require significant effort and is popular among companies. For example, logging has already been implemented by Toplife, DAO Consensus, Bitness, and others. Together with us, these projects have become some of the first players in the market to integrate blockchain and gain a significant competitive advantage. The FlawlessMLM team will help integrate blockchain into your project, regardless of its direction. We will assist with development, improving the marketing plan, and optimizing work processes. To learn more about solutions for your business, contact our manager in the website chat (flawlessmlm.com)

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