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Globally, innovative blockchain technology is getting a lot of popularity across numerous industries. In order to take advantage of the advantages provided by the technology, such as improved security, transparency, speed, and cost-efficiency, many global organizations are investing in blockchain implementation. The MLM (multi-level marketing) sector has a lot of promise for blockchain adoption, notwithstanding the fact that blockchain can alter any industry.

An Overview of the MLM Sector

Multi-level marketing, commonly referred to as network marketing or referral marketing, has long been a foundation of the revenue generation strategy for businesses providing MLM solutions. These businesses reward consumers (those taking part in MLM programs) for recommending their goods and services to friends, family, and other people in their network. This results in a situation where both businesses and users win.

The Issue with the Standard MLM Model

When starting their MLM enterprises, entrepreneurs and small business owners frequently experience the following pain points:

Controlled Centrally

Companies regulate and keep an eye on customers’ accounts and finances as part of the conventional MLM process, giving users little control over their financial dealings.

Lack of faith

It is difficult for a start-up to gain the trust of customers. Even the most successful MLM projects suffer from this.

Transparency Issues

The conventional procedure lacks the transparency of information and user transactions because a centralized authority controls the MLM platform.


Companies that provide MLM solutions have the right to change their incentive program at any time, which leaves users unsure of their profits.

Transaction delays

Transactions are delayed as a result of the lengthy settlement process; it may take days for the transactions to appear in users’ accounts.

The Solution: An MLM platform built on blockchain

A distributed ledger system is made possible by blockchain, a decentralized method. Without a central trust authority, technology makes it possible to track and monitor transactions. Additionally, blockchain enables rule-based smart contracts for peer-to-peer currency and data exchange.

A smart contract is a piece of code that specifies conditions and the procedures to be followed when they are satisfied. Once the conditions are met, the smart contracts automatically execute without any human involvement.

The traditional MLM paradigm can be completely transformed by blockchain technology and smart contracts, making it more dependable, transparent, and safe. The adoption of blockchain technology and smart contracts can not only result in significant improvements to the MLM process but also help to alleviate some of its drawbacks by enabling the following:

Trust and Openness

With blockchain, everything is recorded on a distributed ledger that is open to all network users. Real-time data tracking is made possible by the transparency of the information made available to network participants. Because of the transparency, smart contract-based MLM software is becoming more and more popular all over the world.


Because a smart contract is immutable, no one, not even the person who designed it, can alter it once it has been made. An MLM platform built on smart contracts forbids MLM organizations from changing their business logic once it has been specified in the smart contract. Any MLM model’s users are clear about their revenues.

Instantaneous Transactions

An MLM platform’s smart contract integration automates the calculation of users’ funds and powers peer-to-peer transactions that happen in real-time. With the least amount of latency, the cash is automatically sent to users’ wallets.

Decreased fraud

Blockchain uses a digital signature that consists of a public encryption key known to everyone on the network and a private key known only to the owner to produce proof of ownership. Complex algorithms are used to reach consensus among users. This reduces the danger of fraud by maintaining unaltered transaction data.

Bitcoin: Breaking the Multi-Level Marketing Mould

By enhancing the speed, security, and transparency of transactions, cryptocurrencies powered by blockchain are bringing about a revolution in the way we use money. Users can gain the following advantages from smart contract-based MLM software that uses cryptocurrency for transactions:

  • Instantaneous availability of funds: Users can access funds immediately, without having to wait.
  • Efficiency of transactions: Cryptocurrency transactions are quick, with improved efficiency that does away with laborious back-office reconciliation procedures.
  • Transaction security: Every transaction can be tracked, removing the chance of fraud.
  • Complete control: Because there are no third parties involved with cryptocurrencies, users have total control over their money.

Put away

Blockchain usage is increasing significantly in the enterprise business environment. Due to the decentralized nature of projects, multi-level marketing offers consumers better security, faster transactions, and complete control over their money. In order to participate in the next evolution of multi-level marketing, MLM businesses are utilizing the possibilities of blockchain development services and smart contracts. The early entrants will undoubtedly get a crucial competitive advantage.