Bitcoin is gearing up for a new bullish cycle, two years after it marked a new all-time high in 2021. Bitcoin’s recent growth can be attributed to three things: ETF approval in the US, an upcoming halving, and a growing interest in Blockchain technology.
In this article, we’ll focus on the Blockchain’s growing global impact. More so, we’ll look at some of the ways this technology is helping improve trust in business and finance. Let’s get started.
Fast Money Transfers
Blockchain was created to facilitate peer-to-peer money transfers. Bitcoin was the first ever payment method built using this technology. Today, you can use dozens of blockchains to transfer money from one point to another.
Bitcoin is the most recognizable cryptocurrency in the world. So, it makes sense that it’s most people’s favorite digital currency. If your goal is to transfer money fast, however, you might want to look at other alternative coins.
For example, Ripple (XRP) can transfer a payment in less than a minute. By comparison, Bitcoin takes up to 10 minutes to process one transaction. Another great alternative is Solana, which can process a payment in seconds.
Speed in moving money helps forge trust in business. That’s because people can exchange money and goods swiftly. Delayed transactions cause frustrations and can erode business trust.
Take the online business sector as an example. Someone sending money to one of the top crypto sports betting sites expects to access betting services immediately. Bitcoin offers a fast and reliable way to do this.
Added Security and Privacy
Online businesses face cybersecurity threats regularly. Most breaches target customers’ data and finances. Blockchain can improve trust in digital business through enhanced security.
The blockchain is decentralized, meaning it doesn’t suffer the drawbacks of centralized organizations. It also encrypts all data, making it difficult for hackers to defraud users.
Decentralization means that an attacker would have to corrupt more than half a blockchain to take it down. Considering how expensive such an endeavor would be, no one has ever successfully hacked a blockchain.
Blockchains don’t record users’ details. You don’t need to provide your name or address when making a payment. This enhances privacy, which further improves crypto’s safety.
Transparency and Immutability
One of the features that make Blockchain so appealing to businesses is that it records data transparently and permanently. Transparency means you can track different payments and records at any time.
Immutability means there’s a lower likelihood of experiencing fraud while conducting business through the Blockchain. Let’s say you’re an entrepreneur shipping products from overseas.
Blockchain can help you track your shipment at every stage of the process. The seller can record every item in your shipment and the exact conditions. Then you could have people check on the condition of your shipment at different stages of the transportation process.
The advantage is that you can better track your products. If a shipment leaves Shanghai in perfect condition but arrives with damages, you can check records to determine what happened.
No one can tamper with data recorded on the Blockchain. Also, you can have multiple checkpoints to increase accuracy in record keeping.
Smart Contracts
Perhaps the biggest way blockchain can help improve trust in business is through self-executing contracts. Created by the folks behind Ethereum in 2015, smart contracts self-execute after a specific set of conditions are met.
Smart contracts are one of the best innovations to have come out of crypto. Think about it. Online businesses are always trying to prove their trustworthiness. Also, they take extensive measures to avoid losing money to fraudsters.
Smart contracts provide a solution that leaves both entrepreneurs and their customers happy. They act as intermediaries to assure both parties that their deals will be honored.
Let’s say you want to buy a car located overseas. You’ve already checked enough photos and videos of the car. But you’re not sure whether the seller can be trusted. You can enter into a smart contract.
Your money will be locked into a self-executing contract until the seller ships the car to you. The contract can be executed after you’ve received the car and confirmed that it meets your expectations.
Decentralized Storage
Blockchain technology is one big decentralized ledger. While it is transparent, it can also be secured. This allows businesses to store sensitive data on this ledger without compromising security.
Finance and health companies stand to benefit the most from this system. For example, Fintech operators can record customers’ identification information in the ledger. Then they could share this data securely when the need arises.
Customers don’t need to provide KYC information every time they join a new Fintech app. Yet, the companies would still comply with regulatory authorities.
Likewise, healthcare companies can share data about their clients with authorized persons. This can help save time and improve record-keeping. The blockchain can’t be hacked. Also, it encrypts data, meaning it offers one of the best ways to store sensitive data online.
Improving Financial Freedom
Some people dislike traditional banking providers for the sheer power they have over their customers. Banks will gladly accept your money. But once you ask to send or withdraw it, your bank can reject your application.
Blockchain promotes financial freedom by giving you total ownership over your money. All you need is to find a safe place to store your crypto—a crypto wallet. If your wallet is secure, no one can control how you spend it.
Another benefit is that crypto has a low barrier to entry. Unlike banks, crypto has no minimum investments. You can buy as little as $1 worth of crypto. And if it’s a solid investment, it could balloon to $100 in a few weeks.
Conclusion
As blockchain technology improves, it is becoming clear that it holds the power to revolutionize online businesses. Smart contracts minimize trust issues by ensuring both parties in a business deal get what they want.
Decentralization improves security and transparency while cryptography adds a layer of security to the blockchain. If used properly, this technology can offer tremendous benefits to businesses.
