Find out four key motives for companies and startups to begin using cryptocurrencies and implement blockchain technology into their business models.
Fast and secure transactions
Today’s international bank-to-bank transfers are fairly complex, often taking up to seven business days to complete. Small businesses and startups that cherish KPIs more than anything cannot wait that long. Here’s where blockchain with its laser-fast cryptocurrency transfers can help.
Any blockchain is a distributed ledger that stores a data set across tens of thousands of nodes (PCs connected to the network) all over the world. This means two things:
Blockchain commands an immense computational power that allows users to transfer cryptocurrency in just a few seconds.
There is no central entity to confirm and manage transactions. Thus, nobody can hack the network to maliciously manipulate ledgers in their favor.
Near-instant, transparent and incorruptible transactions on the blockchain are also cost-efficient. This can potentially give startups a much-needed edge over established players who rely on time-proven but slow and expensive payment transfer systems and financial institutions.
Resilient and Transparent Management on Blockchain
The blockchain, which is the cornerstone of some cryptocurrencies, allows startups to massively reduce frictional costs in transaction systems, but this is hardly its major advantage. Cryptocurrencies are digital assets, which means that they are data, not the currency in the conventional sense.
Existing business networks are inefficient, expensive and vulnerable to data breaches. A secure, transparent and resilient blockchain technology that is impenetrable to any third-party interference can solve the problem of data breaches through the use of smart contracts.
As computer-generated protocols, smart contracts function as immutable, self-authenticating, legally binding digital agreements between contracting parties – be they buyers and sellers or employers and employees. The self-executing nature of smart contracts allows parties to streamline and digitize the administration of business management processes by doing the following:
Accelerate transactions and reduce their cost
Eliminate multiple business management mistakes thanks to automation
Shorten business cycles and increase their efficiency
Reduce the risk of fraud and mismanagement
Increase trust between contracting parties
Blockchain can become a key business management tool.Incorporating security, transparency, and resilience by design, it allows company owners to focus on strategy and not get bogged down with routine tasks.
Visit our blockchain-based crypto solutions if you’re looking to use cryptocurrency for your business.