The article takes you through the revolutionary world of blockchain and cryptocurrencies and how they are helping disrupt businesses.
Cryptocurrencies have become immensely popular over the past few years. And not just as a way of making quick money but also as a medium for quick, secure & low-cost cross-border transactions. Blockchain, the underlying technology behind cryptocurrencies is the reason why cryptocurrencies have a huge potential to grow and eventually revolutionize the way many businesses operate.
As more and more businesses come to know about the significance and power of blockchain, the use cases for this technology across industries for purposes ranging from cross-border payments to decentralised finance (DeFi), NFT marketplaces, e-voting, online storage, identity management, and more are consistently increasing. As investors are becoming more educated about blockchain technology, they are beginning to see cryptocurrencies as something more than just a way to make quick profits.
Why blockchain is important for businesses
Blockchain is a secure digital ledger that stores information on a public network shared by thousands, if not millions, of distributed nodes. Not only it can make business processes more efficient through secure & low-cost digital transactions but it will also help bring transparency to industries that lack it. Decentralized data storage, peer-to-peer trading, high security, and a transparent and public system are just some of the ways blockchain can benefit businesses.
The increasing use of blockchain technology by big names like Walmart, IBM, Microsoft, Amazon, Alibaba, and the Bank of China is clear proof of blockchain’s potential to revolutionize businesses.
Here are some other ways blockchain and cryptocurrencies can benefit businesses.
Bring transparency to supply chains
Most businesses that are already using blockchain are doing it to increase transparency in their supply chains and to make it easier to track products through different stages of the production process. At the same time, it will enable end consumers to gain better insights into how the product they are using or buying is made as all data are publicly stored on the blockchain.
Make transactions more efficient & secure
Blockchain is a digital ledger that automatically encrypts all the data and transactions that pass through the network. It helps ensure the transactions are secure and quick since no middlemen are involved in the verification process. While traditional payments still take hours or even days to process, blockchain transactions are processed typically in seconds or minutes at best.
Reduce transaction cost
As compared to traditional payment options like credit cards and digital wallets, the per transaction on the blockchain is much lower. This will enable businesses to save considerably in transaction fees.
Libra Ecosystem is a good example of how blockchain can help revolutionise the e-commerce industry by making transactions more transparent, secure, cost-effective and overall efficient.
Enable cross-border payments in cryptocurrency
Another benefit of the use of blockchain in businesses is the ability to accept payments in cryptocurrency, which is especially useful for businesses offering services in multiple countries. Blockchain-based payments are fast and incur a low fee per transaction.
Reduce the need for middlemen
By eliminating the need for middlemen in business transactions and dealings, blockchain will help businesses become decentralized and facilitate peer-to-peer trading at a lower cost and with increased security.
Blockchain technology can help solve many problems of businesses. From making transactions faster to increasing security, offering improved privacy to users and allowing low-cost payments using cryptocurrencies, blockchain is already revolutionizing businesses in more ways than one.