At the rate of change and risk being managed by transactions today, it’s difficult to anticipate which platforms will eventually dominate the market. However, platforms have a robust algorithm that performs the research for bitcoin traders and makes trading easy. Also, it has helped many beginners to get started with bitcoin trading. With these technological developments in this space, there is no more need for traditional banking platforms or intermediaries.
The value that comes from distributing blockchain technology as a service is a new economic model for industries. It is a trend that can fundamentally transform the value chains of enterprises around the world. Financial institutions, hospitals, and retail chains of all kinds will have to consider how blockchain, specifically for Bitcoin and open-source protocols, can work in their favor.
On the one hand, we have legacy finance which still makes up the vast majority of transactions today, who are more interested in making sure they don’t lose any money than taking any risks with their IT systems. On the other side, we have this new breed of financial technology start-ups interested in moving quickly and growing as quickly as possible.
Together, they will build an entirely new set of financial marketplaces that can have access through mobile devices. The applications are only limited by imagination. The platform will function like an open marketplace where companies interact and do business with each other to create a future where access to global markets is just a few clicks away.
The future of finance depends on our ability to adapt quickly and embrace this new model, which could disrupt nearly every business sector. Therefore, firms should pay attention to these trends as they rethink their systems for payments, transactions, delivery logistics, and other processes involved in the business chain.
Business benefits of blockchain and bitcoin:
- Barrier Breakthrough:
Resistance to new entrants is a significant barrier to growth within the financial services industry. Entering the industry can be a long, daunting process of ensuring all requirements and processes are in place before service providers begin a business. With Bitcoin and blockchain, we finally have a platform with enough inherent value that there is no need for “capitalizing. Instead, you.” can use it immediately without worrying about whether the system will accept you. It has already led to a boom of start-ups in this space and will likely be the catalyst behind the next wave of innovation.
- Operating Costs:
With blockchain and bitcoin technology, there are virtually no operating costs due to efficient automation and lower reliance on fees for processing payments. It will also allow for faster, more convenient payment transfers and settlements. In addition, it can eliminate the need for costly third parties that often take up a sizable portion of revenue from traditional payment methods such as credit cards or checks. Finally, because Bitcoin is based on an international standard that eliminates dependence on centralized intermediaries, it can support global trade without any barriers or regulatory hurdles.
- Zero Chargebacks:
Credit card chargebacks are a big problem for merchants. Chargebacks, however, can be irreversible and subject to significant penalties. It is something that bitcoin and blockchain technology provide solutions to, as they offer processing speeds much faster than credit cards and banks can process, with no fees applied to each transaction.
Also, chargebacks are an essential tool for companies when acting against fraud or security concerns for consumers to receive refunds for their purchases. Bitcoin and similar cryptocurrencies do not incur the option of chargebacks, so merchants or businesses are free from false chargebacks or dispute claims.
- Security:
With a centralized database, data is stored on company servers that are often located in a specific location. Because of this, if hackers gain access to these systems, they can potentially steal sensitive information. However, because of the distributed nature of blockchain technology, information is spread out and decentralized across the network, so there are no single points of vulnerability that users can attack as with traditional systems. As a result, it makes it impossible for hackers to compromise sensitive information or steal funds stored within a blockchain wallet.
- Inventory and stock management with blockchain:
With the rapid growth of IoT, inventory management systems are increasingly important as technology becomes embedded into everyday products and services. However, many IoT devices need to be standardized and can be challenging to integrate with enterprise systems.
Blockchain technology is an excellent way for businesses to improve customer service by providing real-time data with a use case to adjust or improve services or products delivered. For example, blockchain is ideal for inventory management and tracking product cycles because it can not be broken or tampered with and is easy to verify.
Beyond that, blockchain also has the potential to improve transparency and trust through the implementation of smart contracts. Blockchain technology can have a use case to secure supply chains by making them more transparent and efficient. It is an area where blockchain is already in use with some success in the food industry for tracking products from source to delivery.
