What can you do with Blockchain?
As Bitcoin prices soar, most people regard it solely as a kind of investment, ignoring its practical applications. This article is not for you if you arrived at this website expecting to learn something new from another expert about how to invest, you’re wrong. Today, we’ll focus exclusively on the practical applications of blockchain and cryptocurrencies, and how they may truly, profoundly transform corporate procedures.
To begin with, cryptocurrencies are based on blockchains, which is a fancy term for a network of computers that collaborate to keep data. This information is open to the public and cannot be changed. Cryptocurrencies capture and store information about each coin’s ownership and transaction history. Consider a public database that tracks who owns each dollar bill based on the serial number assigned to each bill. Every time the bill changes hands, the database would update its records.
Aside from timesheets, inventories, freight movements, and commission payments, the blockchain may collect a variety of additional data. This is critical because the blockchain may be used as a business tool rather than just a piggy bank.
I believe blockchain is the future because of the unique and practical use cases it can be applied to, which we will discuss in greater detail below. As someone whose current business has built a platform to enable content producers to create, market, and sell NFTs, we are sure that blockchain is the future because of the unique and practical use cases it can be applied to.
Process Transparency and Trust
At its foundation, blockchain is concerned with the issue of trust. When all parties involved in a commercial process or transaction have faith in one another, the transaction will go considerably more smoothly. Because blockchain data is public and cannot be changed without it being recorded, it enables unrivaled transaction safety and traceability.
Large enterprises aren’t the only ones who can benefit from the blockchain. Small and medium-sized enterprises can achieve this because they typically have less negotiating power and are compelled to make decisions based on data provided by larger companies. For example, a supply chain and a small firm, where disagreeing over the order date, delivery location and time, or payment date is not an option. All parties will save money on transparency in this scenario, resulting in speedier fulfillment and payments.
The need for middlemen can be eliminated if a business process is trusted. Go-betweens are primarily responsible for resolving disputes between all parties involved in a transaction. As a result, intermediaries like title companies and deed agents, who act as truth adjudicators, will become largely obsolete. However, by providing blockchain platforms where transaction data can be referenced, intermediaries who aid deal-making, such as business brokers and loan providers, can become even more important. Although there will be just one truth, businesses will still require someone to verify it.
The blockchain’s smart contracts are a critical feature. When certain circumstances are met, events can be triggered automatically without the need for human validation. An order is delivered, or a specific number of days have passed since rent is due are examples of these circumstances. Payments against the contract can be made automatically and instantly whenever the parties agree that a condition has been met.
NFTs, STOs, ICOs
We already talked about this topic, at a higher level in another article. Furthermore, the change of ownership of that piece of something (art, land, etc.) would be recorded on the blockchain for eternity. This procedure makes assets significantly more liquid than they are now and eliminates any chance of title disputes. Also, you can invest in STOs for a passive income, generated from dividends of those projects and in ICOs to try your skills on cryptocurrency.
Gain Access to a Global Market
Cryptocurrencies are international money. Businesses can now sell globally without suffering the transaction fees associated with multi-currency transactions. It also lets consumers from nations where their currencies are prohibited to purchase directly using tradeable bitcoin.
These being said, we can understand that blockchain can have endless possibilities for businesses and consumers. You just have to learn the procedure, even if all the platforms are mostly intuitive, making the process for the consumer easier with every click.