Cryptocurrencies have opened new doors for businesses all around the world. It has become a new mode of investment and has proven to be an effective way to raise funds. With the help of a cryptocurrency expert, businesses can make their day-to-day operations more effective and secure. These professionals who have a degree in cryptocurrency have created a safe mode of payment and have created a faster mode of transfer of funds.
What is Cryptocurrency?
Cryptocurrency is a virtual line of currency that uses blockchain technology. These currencies are circulated in a decentralized network where the records of each and every transaction are maintained in a highly encrypted manner. Professionals with cryptocurrency degree are making it possible for companies to implement these secure modes of transaction in their networks. There are various applications of cryptocurrency in business and finance, and some of them are as follows -
Cutting Down Double Spending
The primary issue many companies face with digital payment platforms is double-spending. With blockchain technology which provides digital ledgers, companies can cross-check payments and ensure that every transaction is verified and recorded in a safe place.
Transaction Speed
Earlier, a transfer of money via western union took up to 20 days. However, with Ethereum, a transaction will take no more than 20 seconds, irrespective of its value. Since these transactions run on the blockchain, a network free from international financial barriers makes transactions fast.
Minimal Transaction Fees
Traditional modes of payment like credit cards or online banking charge hefty processing fees, which makes it inconvenient to transfer funds for businesses that engage in frequent transactions of money. On the other hand, cryptocurrencies have no direct processing fee. A cryptocurrency expert can guide a company toward adopting this new mode of payment which does not involve any intermediary financial institution. Moreover, these transactions are decentralized and are carried over the blockchain network, which has no interference from the government or banking institutions.
No overarching authority controls the movement of cryptocurrency as it operates through blockchain technology. And more and more businesses are accepting cryptocurrency as a mode of payment.
Ensure Ethical Business Practice
Some key features of cryptocurrencies are integrity, immutability, accountability, and cost savings. Every business needs the value and features of cryptocurrencies to become more profitable. On several occasions, people working in companies breach ethical norms at the expense of business and customers. Therefore, enterprises need technology that can prevent this from happening.
For instance, a business that deals with land titling can face issues such as duplication of a land and the selling of property illegally. Using cryptocurrency, they can have a digital ledger of each payment, ensuring that it cannot be duplicated or deleted. Furthermore, charitable institutions can also use cryptocurrency to ensure that their funds are not misused and are spent on philanthropic activities. It can also act as proof for the donors and will also assure them that their money has been spent in the way they intended.
Increased Funding
One of the primary requirements of any blooming startup is funding, and they intend to raise funds from various modes. These modes can be fundraising events, stock markets, or any other platform where they can conduct fundraising. In cryptocurrency, one of the most prominent fundraising methods for startups is initial coin offerings or ICO. ICO is the only fundraising method where businesses can reach an international audience and demand funds from them. The company's net worth is reflected on the platform, and businesses invest based on it. All a person need is some cryptocurrency education that will enable them to operate on these platforms.
For instance, in 2014, a teenager named Vitalik Buterin raised almost 18 billion dollars from the international community for his startup with a whitepaper and a vision for his business. These platforms can be used by companies to raise an adequate amount of funds for their business idea and get a broad base of supporters for the business.
Following the boom of ICO, several other models, such as STO (security token offering) and IEO (initial exchange offering). IEO is quite similar to ICO, which is conducted over an exchange platform.
Easier Cross-Border Payments
For businesses to operate globally, they need to set up a payment system that can help them quickly transfer funds from all parts of the globe. Companies that have employees abroad have to go through the task of converting their payments into other currencies to enable the cost of their employees. This delays the number of employees and clients who are doing business with them from abroad. However, companies can hire cryptocurrency experts to help them set up a more secure and faster mode of payment which ensures quick and secure transfer of funds across borders. Moreover, companies are not required to pay any cross-border transaction fees.
As these transactions are done over the blockchain, each and every detail of the recipient and sender is recorded over the blockchain. In this way, businesses save themselves from the hassle of banks and shortened their payment cycles significantly.
Cut Down Chargebacks
Chargeback is a severe problem that many offline and online businesses face these days. This usually happens when the customer returns a product or cancels its payment after using it. These kinds of activities can lead to huge business losses over time. Chargebacks can occur only with fiat currency, so if a business uses an alternate payment mode, such as cryptocurrency, it cannot be canceled.
Payments done through the cryptocurrency are recorded over the blockchain network in the form of a digital ledger which cannot be altered. In such a case, a customer can get a refund from the business directly and cannot cancel the payment from their end. To facilitate this system, companies need to hire people with a degree in cryptocurrency.
Ensure Customer Privacy
Online businesses and several e-commerce sites have been facing the issue of cybersecurity breaches. These breaches can lead to identity theft and possible loss of finances. Therefore, to prevent such things from happening to their customers, businesses need to use secure payment gateways, which ensure that the customer’s payment information remains safe and cannot be used otherwise.
Businesses can also accept payment in cryptocurrency as an alternative form of payment. In this way, companies can provide a secure mode of transaction to their customers with which they can not only transfer funds seamlessly but also protect their data.
Shield your Business Against Inflation
Cryptocurrencies are modes of payment that governments do not regulate, and thus they remain unaffected by governments' monetary and fiscal policies around the globe. The government might increase taxes on converting cryptocurrency to fiat money, but they remain unaffected by economic phenomena such as inflation and recession. As inflation rises, manufacturing and other business operations become costly and thus making it challenging for businesses to conduct their operations.
In countries suffering from grave economic crises and their money’s value depreciates rapidly, cryptocurrency can be a way out. This currency remains unaffected by the global financial crisis and thus provides businesses with a less volatile alternative.
Cryptocurrency as Business Equity
Many modern businesses give away stock options or business equity to early employees. With the rise of cryptocurrencies, some companies have started giving out company cryptocurrency to their employees. This has created an original form of the company’s share and has ensured the employees that the ownership of this equity cannot be altered as it is registered on the blockchain network.
Key to Accessing an International Audience
Cryptocurrency and blockchain technology have reached every country that has an internet connection. This globalized payment method has connected consumers and businesses all around the globe and has facilitated smoother payments. Companies have used cryptocurrencies to build an adequate business infrastructure with a low transaction cost and no additional overhead charges.
Bottomline
Businesses connect themselves with the ever-expanding blockchain community by making a business open to cryptocurrency. These communities are filled with numerous cryptocurrency experts who can help businesses expand themselves in a way that was not possible earlier.
To gain more insight into the different applications of cryptocurrency education in businesses and finance, visit Blockchain Council. Here you can access legitimate sources of information on cryptocurrency and how it is transforming modern companies. You can gain key information which can be used to make business operations more inclusive and transparent.
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