How does blockchain affect the business?
Blockchain technology and cryptocurrencies like Bitcoin have brought a lot of news over the past year. Every week there seems to be a different headline promoting the next revolution or downplaying this new technology as a trend with little long-term prospects. If you are new to blockchain technology or are still building your perspective, let me make a revolutionary claim.
Let’s start with why we trust our business with the company. We trust the largest retailers to fulfill their purchases to provide their goods and services. We believe that the bank guarantees that our account balance is correct, the transfer is confirmed and that there is no fraud. The systems used by these companies strengthen our trust in Litecoin Price at https://www.webull.com/quote/ccc-ltcusd.
For example, transaction verification regulations, fraud prevention systems and services all play a role in ensuring that business is being done on the board. Credit card companies are a particular example of a third party charging a fee for every purchase to settle and verify consumer credit. Overall, each of these parties acts as an intermediary and serves a fee per transaction.
The number of transactions in our global economy is staggering. Global retail sales exceed $ 20 trillion annually and total global products (GWP) exceed $ 100 trillion. As a result, a large number of transactions and transactions operate reliably using intermediaries and their verification services.
For reasons of cost, these intermediaries are accepting to subtract trillions of transaction fees in order to contain fraud and maintain consumer confidence. These costs creep into the economy, driving up the cost of living and the prices of goods and services.
But what if there was a cheaper or faster way to validate a deal in our economy? If alternatives exist, the savings can be trillions of dollars. For example, online payment gateways make billions of dollars adding more than 2.9% per transaction. There is also the cost of lost time. All intermediaries delay in license renewals, loan approvals, or real estate, for days to weeks.
Reducing the cost of all transactions and orders in business will bring incredible profits to businesses and will confuse the way we do business. Injecting trillions of savings will trigger greater global economic growth than any government or company can do alone.
Blockchain is future
Blockchain technology is basically a decentralized system for recording trusted transactions with no intermediaries. With the power of encryption, every transaction is irrefutably linked and shared across the entire computer network. Computers on the network automatically check the terms and conditions and act as an instant accountant, “checking the books” for free. Hence, automatic transaction validation is a fundamental feature of blockchain technology.
This is how cryptocurrencies like Bitcoin work too. There is a limit to the number of coins you can earn from solving math puzzles or buying from others. Anyone with a solution to the puzzle can prove possession of the coin as the evidence is recorded on the underlying blockchain network. Network participants cryptographically verify the identity and integrity of each other’s evidence to ensure who owns which coin. You can do trade cryptos after learning enough information.