In recent months Blockchain has received an exceptional amount of attention in the media, mainly due to its links to cryptocurrencies such as Ethereum Classic and Bitcoin. Despite the initial speculation of many across the world, it is now clear that this advanced technology will likely prove to be the next great disruption to business, and already is, from even faster and exceptionally safe transactions, to the chance to cut out the middlemen. With this in mind, we’re taking a closer look at how cryptocurrencies have the potential to transform your business, here.
Fast & Secure Transactions
It’s no secret that today’s bank-to-bank transfers are fairly complex, and can even take several business days to complete. In particular, this can cause problems for small businesses and startups alike. However, thanks to fast cryptocurrency transfers, this could soon be a thing of the past. Blockchain allows users to transfer cryptocurrency in a matter of seconds, and because there is no central entity to manage these transactions and no additional fees involved, these transfers are highly cost-efficient.
Improved Management
Existing business networks are often inefficient and expensive, and some are even highly vulnerable to substantial data breaches. Despite this risk, a secure and transparent blockchain technology that cannot be penetrated to a third-party interface can reduce, if not solve, the issue surrounding data breaches via smart contracts.
In addition, Blockchain has to potential to become a key business management tool. By incorporating transparency and security by design, it enables business owners to focus on strategy, without getting inundated with various routine tasks.
Cut Out The Middlemen
It is a known fact that cryptocurrencies reduce the need for intermediaries such as money-transfer systems, real estate firms and banks. In the business world this means that small businesses in particular can enjoy the benefits of cutting out the middlemen. Due to blockchain-powered smart contracts, these businesses can take advantage of higher operation speed, fewer mistakes and reduced product and service costs. To put this into perspective, from the moment small businesses start using smart contracts, they will begin to save money that would otherwise be sent to banks and lawyers. As well as money, this also saves valuable time.
Investment Opportunities
While there are a number of practical uses of cryptocurrencies, they can also be at least partially used to preserve the financial holdings of a business. If you took the plunge and purchased one BTC in 2010 for example when its price didn’t exceed one U.S. dollar, you would be the proud owner of approximately $20,000 today. In a similar sense, if you had bought 1 ETH, you would have $2million.
Whilst countries once did not recognise cryptocurrencies as financial and investment instruments, as the legal and regulatory cryptocurrency landscape changes, countries such as Japan, Russia and China are taking steps to legalise cryptocurrencies.
As cryptocurrencies continue to gain momentum, who knows how else cryptocurrencies could transform your business in the future? From the chance to cut out the middlemen to operating faster and more secure transactions, it’s not too to take advantage of this unique opportunity!
