Every transaction is always anchored in three pillars-the need to limit transaction costs, building trust and limiting the time taken for the transaction to mature. Bitcoin is a form digital currency which is not attached to any government of bank and enables user to anonymously spend their money. Initially, the use of bitcoin was embroiled in several controversies as many regarded it as a currency meant for nefarious black market businesses. Blockchain is a public ledger that tracks all bitcoin transactions.
Since its inception, bitcoin has been rising both in use and value. The use of blockchain to track bitcoin has led to trust an approval in any transaction involving bitcoin. Additionally, the use of bitcoin offers verifiable way through which you can trace digital currency without going through a central command. This significantly reduces transaction costs and eliminates possibilities of fraudulent transaction. So how can bitcoin business be applied in a business?
Applications Of Bitcoin In A Business
The use of bitcoin has increased-many business are accepting it as a mode of payment, several banks are increasing acknowledging it and many bicoin companies are growing in terms of size and financial profiles. Many bitcoin companies are listed on some of the world’s leading stock exchanges. You can find more about Bitcoin news and info by following http://bitcoinexchangeguide.com
This is a straight forward and easy way through which a business can apply bitcoin business in its operation. Bitcoin-initiated payments are more suited for peer-to-peer but they also work better doe small and medium businesses. A bitcoin transaction cannot be reversed. This allows a business to avoid unfair chargebacks which are common with small businesses as a result of untruthful or unhappy customers.
The lack of the middle man to process the transaction also means there can never be any possibility for reversal. Once you receive a payment, you have the full confidence that the money will stay in the digital wallet. The absence of a middle man also means that you pay less in transaction fees.
With its use rapidly growing, bitcoin business is everywhere in the world and many people are accepting as a mode of payment. The use of bitcoin is not dictated by location or nationality. It is accepted anywhere in the world.
The major undoing with the use of bitcoin in payment and any other function is that it is not attached to any currency. This means it is hard to establish the real value of bitcoin at a particular time.
Funding Your Business
Using a digital currency to manage a fundraising campaign has a lot of benefits. First, you are able to raise money from anyone and from any location without incurring major fees. Blockchain also enables you to issue digital shares and unalterable contracts attached to the transaction. By using blockchain, you are able to raise money which is embedded in contacts without the need for traditional financiers.
The next major application of blockchain will soon be its use in escrow. Currently blockchain. The main aim of bitcoins is always to attach value to a product so that it can have its equivalent currency replacement. A company can use blockchain to build almost-perfect and easily implementable contracts with its customers. Smart contracts are sets of rules that come in form of a block.
They allow you to create escrows with the need to have a third party as a witness. A small business can develop several rules for example upon which the escrows will be managed and only release the cash deposited after certain conditions are fulfilled. By doing this, you can confidently sell digital products knowing that customers will only pay for the products upon delivery. In addition, you have the full confidence that the buyer won’t have the product until the purchase money is deposited.
As the use of bitcoin grows, this will be its other application. A number of companies like Storj are already engaged in offering secure and convenient cloud storage while at the same time reducing on dependency.
Owing to the fact that blockchain originates from cryptocurrency, it makes a lot of sense if it is used to pay employees. This particularly common if the business regularly pays international employees. In this case, the use of bitcoin could save the business a lot of money spent in remittance costs.