You probably have heard about Bitcoins and cryptocurrency. It's almost dreamlike to imagine that, back in 2011, Bitcoins traded for $1 each only. But in recent, Bitcoin was worth $16,000. As an entrepreneur, you may not be interested in purchasing Bitcoins or any other cryptocurrency as forms of investment.
Blockchain-related topics are really hot nowadays and cryptocurrencies are one of them. Cryptocurrency is mainly a medium of exchanging value that exists in the digital world and relies on encryption, which makes transaction secure.
The most famous cryptocurrency is, of course, Bitcoin, which made everyone curious about the topic of crypto by its explosive rise and has become the defacto standard for cryptocurrency. Besides Bitcoin, there are some more important cryptocurrencies such as Ethereum (ETH), Litecoin (LTC), Dash and Ripple (XRP).
In current days, cryptocurrency is just treated as an alternative form of payment to cash, credit, and checks. The technology Blockchain behind it allows you to send it directly to the receiver without going through a third party like a bank.
What are Blockchain and its benefits?
In a layman's terms, basically, the blockchain is a virtual public ledger that is used to record every transaction in a secure and transparent way. The blockchain development allows the transactions of cryptocurrencies through a decentralized environment. All the data is held in an interlinked network of computers, owned and run by non-other than the user themselves. Here are the most important benefits of blockchain that may prove to be useful in different industries:
1) Supply Chain Management: For supply chain management, blockchain technology offers the benefits of traceability and cost-effectiveness. Put simply, a blockchain is used to track the movement of the goods, their origin, quality and so forth. This brings a new level of transportation to B2B ecosystems- simplifying processes such as ownership transfer, production processes assurance, and payments.
2) Quality Assurance: If any misdeed is detected somewhere along the whole supply chain, a blockchain system can help you to go to its point of origin. The interlinked chain makes it easy for businesses to carry out the necessary investigations and take actions accordingly.
3) Accounting: Recording transactions through Blockchain allows you to eliminate human error and protect the data from possible tampering. Keep in mind that records are verified every single time they are passed on from one blockchain to the next.
4) Smart Contracts: Smart contracts, agreements can be automatically validated, signed and enforced through a blockchain construct. This helps you to eliminate the need for mediators and save your time and money both.
5) Peer-to-peer transactions: While, there is already a slew of services like Paypal that are used for international payments. They usually require sizable fees per transaction. Some other P2P services are also there but with few restrictions such as locations and minimum transfer amounts.
So far, we have learned in the article what is cryptocurrency on how it works in sync with the block-chains. The market of the cryptocurrency is far and wild. it has the power to change our lives forever. it can help you take back control of your money and your information as well as very useful in taking back control of your money and your information.
Dev Bhushan is the founder and CEO of Nettechnocrats. Dev has become a consistent leader with a reputation for tenaciously protecting his clients' interests. He has built a prestigious image in his pursuit of excellence, winning the trust and confidence of customers and industry partners. Connect with him on LinkedIn to know more about his futuristic business ventures.