Blockchain technology is projected to have a major impact on businesses, in which small and medium enterprises (SMEs) can face some risks but can also seize opportunities for themselves. For the businesses that must handle data or manage complex transactions, adopting a blockchain approach could change the way they work. However, for many, “blockchain” is simply a word appearing on media and social networks. Some people may know that blockchain is the technology that powers Cryptocurrency, the first cryptocurrency, but, for most people, the understanding of it is too fuzzy.
Businesses should pay greater attention to cryptocurrency as time goes on to keep up with the ever-changing financial landscape and to further reap the benefits of functioning on the blockchain. Although there is a learning curve for merchants, there are various advantages to creating Crypto Business Account and accepting digital currency.
A Brief Introduction to Cryptocurrency
Cryptocurrency is simply understood as virtual money or electronic money. The function of Crypto is similar to USD, but only digital. This means that you cannot directly exchange Crypto hands like regular cash, but can only transact through the internet with specialized software and applications.
To perform financial transactions, Crypto needs to use cryptographic functions – Blockchain technology, which makes virtual currencies immutable, transparent and decentralized. It is undeniable that Crypto is becoming a popular currency around the world because of its benefits.
As you may have known, Bitcoin (BTC) is the origin of crypto. But there are thousands of virtual currencies on the market right now.
At the time of speaking, there are 3021 cryptocurrencies on Coinmarketcap. Not to mention some coins have not been updated here yet. These coins are growing every day to prove themselves. Every cryptocurrency has good technologies. You can find the coin name in the search section of Blogtienao to get more information.
For example, an Ethereum (ETH) can be used to run decentralized applications (dApps) and smart contracts. In addition, there are still notable names such as EOS, LTC, XRP …
The Basic Mechanism of Blockchain
Blockchain is a technology that allows data to be safely transmitted via a peer-to-peer network using an incredibly complex encryption mechanism, comparable to a company’s accounting ledger, where money is closely watched and all transactions are recorded. Each block contains information about its creation time, as well as timecode and transaction data, and is connected to the previous block. There is no way to modify data once it has been accepted by the network. Blockchain is built to protect data against tampering and fraud.
Each node on the Blockchain has access to the entire Blockchain. No button or computer modifies the information contained therein. Every node can validate Blockchain records. All this is done without one or a few intermediaries controlling everything. Transactions take place peer-to-peer (P2P), directly between two parties, without going through a third party. Information on the Blockchain is stored on each node which is then passed on to neighboring nodes. In this way, the information propagates through the entire network.
Anyone has the ability to see every transaction and its hash value. All you see on the blockchain is a record of transactions between the Blockchain addresses (Note: don’t see their real identities, pictures). After recording the transaction on the blockchain and the blockchain was updated, then the record of this transaction cannot be changed. The record of a particular transaction is linked to the previous record. Blockchain records are permanent, and they are up to date at all other nodes.
So What Are The Roles That Blockchain Play in Your Business?
Enhanced Cash Flow
When a transaction is completed, smart contracts built by a DLT system can automatically pay invoices. Rather than waiting for clearance at several levels, anyone, including the project manager or the quality control supervisor, can understand the criteria and sign for approval. The block will close once everything is completed, and the payment will be executed automatically.
The Supply Chain System has been resurrected
How can you be certain that the things you manufacture or buy have a provenance? DLT creates a visible, consistent chain of records, proving that the raw materials are clean and that the factories’ safety and health protocols are in place. Check is a new program in Vietnam that helps you trace the origins of food, similar to the one mentioned above.
Updates are made automatically
If you offer a service that requires repeat visits, such as a physical test or cosmetic consultation, the booking will be arranged automatically following the initial visit. Customers will be requested to confirm their appointment schedule on the system at the same time. This will lessen your administrative workload and help you avoid losing consumers. Several international hospitals, including Prince Court in Malaysia and others in Singapore, are already implementing the technology.
Intermediate Units Should Be Simplified
It is a fantastic approach to save money if two businesses can agree to collaborate without the use of intermediaries. If you operate as a broker, though, you are not so fortunate. You’ll need to consider how you might give value to your clients beyond merely performing a transaction. Banks and depository institutions are the exact units we’re talking about here. Tourists are able to book hotels directly without the need for workers, which is causing the tourism industry to face the same dilemma.
Digital Identity Card
The United Nations is working on a DLT for refugees and unauthorized immigrants. Businesses will also save time by not having to fill out paperwork to apply for business incorporation, tax registration, and other services.
Bottom Line
We are yet to fully envision how blockchain technology will affect and change the world specifically. Thus, this is the time for new ideas to take place as cryptocurrency acquires confidence and recognition, it’s evident that the benefits associated with the blockchain are prodigious. Thus your business should seize this opportunity immediately and adapt the business models to accept blockchain payments.
