Blockchain Is Built For Automating And Streamlining Business Operations
There are a great number of advantages that Bitcoin offers users over conventional cash, and gives it a mass appeal. And since there is no real way for third parties to identify, track or even intercept these transactions, Bitcoin is commonly lauded for giving users a greater scope of anonymity.
The absence as well of any intermediaries, such as financial institutions or government involvement in Bitcoin transactions makes it far harder for them to add any form of taxation to transactions which take place, preventing any kind of fees from being incurred by the end user.
For the demographic of POS Companies and retailers, Bitcoin is a far better alternative to card and fiat, at least for when it comes to the additional charges associated with card transactions, due to the fact that it stands at roughly 3 to 5 percent for each purchase, simply to use this service. It costs far more money in this system, especially when it comes to wiring money from one country to another.
While Bitcoin has made an impact on a smaller scale among peer to peer transactions, there's a place where blockchain technology can have a widespread and truly profound impact: and that community is the financial and business world.
Blockchain technology on its own, operates as a distributed ledger on which transactions between two distinct parties are stored. Bitcoin miners are informed of a pending payment, and they package this data with a series of other pending transactions.
This is roughly how the bitcoin blockchain's process works on a typical basis: a payment is processed with the use of a users private key and the public key of . the person . receiving the payment. The keys are a combination of a seemingly randomized series of numbers and letters.
A mathematical formula, referred to as a ‘hash' is then applied to each transaction respectively. This hash stands as a cryptographic fingerprint which makes a transaction verifiable.
The subsequent assimilation of Bitcoin brings us all one step closer to a wider sophistication of the accounting profession, With day to day operations within accounting being manually intensive and requiring a great deal of checks and balances to ensure the accuracy of financial transactions. it's for this reason that both internal and external audits of a business are as cumbersome as they are costly to instigate.
The perfect source for records when it comes to an audit? Blockchain technology. Why? Any transaction stored on the blockchain is simply impossible to be mismanaged due to incompetence or general human error.
Blockchain has the ability to streamline once traditional, human-centric operations from content finance and production, business consumer services, insurance and technology licensing and development.
When it comes to contracts, multiple parties can potentially be involved, leading to increasingly complex payment processes, expenditure exaggerations and ignored licensing terms.
Another solution to these issues include the Smart Contracts run by the Ethereum blockchain, which automatically executes the terms of a contract without the need for a third party.
When it comes to a contract, it can be embedded into the program, and once the obligations of a mutually agreed upon contract, the terms are made fully actionable. Simplifying online payments and contractual obligations allows for business operations to be completely streamlined.
A cash on delivery contract, ideally, would allow for a negotiation between two parties before the full transaction process. After the shipment and receipt are fully verified, smart contracts automate fund transfers for vendors, contributing to the overall cash flow of the vendor and, as a result, decreasing the amount . of back office monitoring for the vendors accounts payable.
By doing this, businesses can keep a record of each transaction via receipt and with . invoices. aspects like human error or unscrupulous practices sometimes getting in the way of producing accurate accounts of transaction records. The advantage of blockchain technology is that it doesn't rely on trust and manual human effort.
Under a smart contract, the distributed ledger would be openly available to both parties, recording all transactions between the respective parties, which is also distributed and sealed to a particular cryptographic ledger. This system makes any alterations or falsifications of these records is nearly impossible.
Blockchain technology could also expedite and streamline procurement and supply chain management and supply chain management. At the moment, there are only a few companies that have created a peer to peer decentralized network specifically based off the Ethereum protocol. This kind of protocol connects the likes of carriers, bankers, traders, and other vested parties on the shipping supply chain.
Decentralized and data storage technology allows paperless documentation and a single source of record keeping for all parties.
There are big companies such as Walmart that recently integrated blockchain technology as a means to track the various shipments of produce from source to store. When it comes to the numerous steps of inventory management can be done with a far greater level of efficiency when a company makes use of a shipment tracking system underpinned by an integrated blockchain system. Purchase orders, item receipts, bills, and payments are all embedded on a chain.