5 Reasons Why Blockchain Technology is Good for Online Business

This is recent that people got aware of bitcoin and recognized the endless possibilities that this controversial currency presents.

Bitcoin uses blockchain technology to record every transaction in the distributed ledger.

The blockchain has become an alternative to traditional currency, centralized banking, and modes of transaction. It has not only changed the way of doing and managing financial transactions but has provided many alternatives to transform the world.

The blockchain is a distributed ledger that maintains linear records (blocks) of every transaction across a distributed network of tens of thousands of computers, making it impossible to hack.

The blockchain isn’t just changing the way banking is done, it also has the potential to change how online businesses conduct their day-to-day business activities by following applications.

  1. Smart Contracts

If your business requires you to enter into a contractual agreement with your clients or customers then smart contracts can be quite beneficial.

Smart contracts are self-automated computer programs that can carry out the terms of any contract, removing any possibility of downtime, censorship, fraud, or third-party interference.

Smart contracts act as an unbreakable tool of financial security as they lower the costs of maintaining, drafting, and abiding by the physical contracts.

  1. Cloud Storage

Another advantage of blockchain technology to online businesses is cloud storage. Blockchain-enabled cloud storage will decrease dependency, making it more secure than the normal one.

An average user can use the excess space on his hard space to store the traditional cloud 300 times over.

This will reduce the cost of storing data on a cloud for companies and personal users, simultaneously generating revenue opportunities for normal users.

  1. Supply-Chain Communications & Proof-of-Provenance

Most of the things that we buy are the result of the assembly of different components supplied by a chain of sellers. The problem with this system is in case of failure of any component, the brand has to take full responsibility for the backlash.

The use of blockchain technology will provide permanent and auditable digital records displaying the state of the product at each value-added step. This will increase the transparency in the supply-chain management and will let all the parties know the exact point of discrepancy or failure.

  1. Paying Employees

The blockchain found its roots in cryptocurrency, so it will be no shock if shortly companies start paying their employees in Bitcoins. It will be a major cost saver to incorporate Bitcoins in the payroll process for paying wages to international workers.

As blockchain maintains a public ledger of all transactions in chronological order, payments made via Bitcoin will not only save money and time for both the employers and employees, but will also provide transparency as it will enable the parties involved to see exactly where the money is during the process.

Even paying the native employees and contractors is beneficial to the big companies and banks.

  1. Electronic Voting

In blockchain technology, Delegated Proof of Stake (DPOS) is the fastest, most efficient, most decentralized, and most flexible consensus model available.

It is mandatory for every transaction in blockchain to be witnessed and verified by a huge number of stakeholders. DPOS is designed to provide a fair and democratic way of voting inside the blockchain so that all network parameters, from fee schedules to block intervals and transaction sizes, can be tuned via elected delegates.

The consensus protocol DPOS works on protects all the blockchain participants against unwanted regulatory interference.

Conclusion

At present, the use of blockchain is transforming many industries including finance, healthcare, insurance, and manufacturBlockchainchain technology is continuously evolving with more and more innovative ways to help the various domains of the industry.

With blockchain, you can transform your online business transactions to a more secured digital mode. Blockchain enables smooth and efficient transactions by which you can remodel the key processes of your business.

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