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Businessscoop

BLOCKCHAIN ERASES THE BOUNDARIES OF BUSINESS

Many experts considered blockchain a next stage of evolution in the optimization of business processes. The complete decentralization and the distribution of databases offer great opportunities for business today. Numerous research proves the prospectivity of applying blockchain in state management as well as in various finance spheres. That’s the opinion of PriceWaterhouseCoopers (PwC) and Wirex.

                                       

More than a half thousand of leaders from the world’s largest financial institutions participated in ICO research About half of the respondents fully understand the importance of blockchain for business, but 57% do not quite realize how this technology can be applied and do not know how to respond it yet. All of these are the evidence of the world standing on the threshold of the global prevalence of blockchain technology.

 

PRACTICAL APPLICATION OF BLOCKCHAIN

Blockchain technology can be used almost in any sphere of life. For example, it is possible to enter a medical record into the blockchain and then never lose it, or a musician can safely save own media content without fear of somebody stealing it. The government of Estonia already permits registering marriage, birth and business contracts in the blockchain system. But still the main sphere of the technology application is financial market.


Cryptocurrencies become more popular means of payment in advanced countries. Relatively low commission is charged in blockchain unlike in general payment systems. And the speed of transaction is much higher at that. A standard bank transfer to a foreign country may take several days or a week. At the same time, transaction made through popular blockchain platforms takes some 10-15 minutes like in Bitcoin, and some projects are working on decreasing the processing time up to some seconds like ICO whitepaper 3 sec.) and NEO (20 sec.). That accelerates a cash turnover and fastens the business process. This is a great advantage over the traditional payment system for the companies working in the international trade sector.


All payments can be easily reflected in the accounting. Quick payments is a way to optimize business processes and to build the reputation of a technically advanced company, which is also a newsworthy event to promote PR.


There is much more interest in another way of applying a blockchain, and namely in investments attraction. It is possible to achieve this kind of finance by using ICO (initial coins offering). This tool works in the following way: the company issues own tokens for cryptocurrency by selling them to different investors. According to Smith+Crown agency, $102 million was raised in ICO only in 2016. Experts cannot state the amount raised in 2017 yet, but obviously it has increased dramatically. A well-grounded project can attract hundreds of millions of dollars if presented correctly and competently. Many of crypto-investors got disappointed in scam projects and now want to invest in blockchain projects related to the real sector of economy.


HOW IT WORKS

Blockchain guarantees the mutual fulfillment of contract obligations thanks to a simple and reliable principle of distributed network. Thus, the platform itself checks legal obligations and transactions. In a traditional world of business, this responsibility is transferred to the third party. As a result, a businessman can make a contract with a supplier without a certified public accountant. Still it is feasible to track the flow of goods through the whole supply chain with all possible departure details.


We can take blockchain-based smart contracts as an example. Smart contracts can follow the terms of transaction, control the devolution of property, goods/services supply without any legal intrusion. Blockchain creates trust relationship between contractors and secures transparency for every deal made. At the same time, the network infrastructure of the popular platforms is supported by mining.


Billions of people all over the world do not have access to bank accounts and have no opportunity to exchange the currency. Cryptocurrency based financial technologies solve this problem with the only condition of internet access.


NEW FINANCIAL NICHE

New companies came to the market during the rapid progress of digital era, and they built a new niche in the sphere of consulting and financial services. Famous exchange market for cryptocurrency  Coinbase  is not only the intermediary platform for buying/selling coins, but also it permits securing digital assets from stealing. Company Libra supports corporations in making the records of operations with digital assets as well as in analyzing and auditing them. They accomplish this by working with various blockchain platforms.


New players also appear on the market, and they bring more advanced solutions and a high level of decentralization. Blockchain platform CREDITS is one of the fast developing projects. The company offers a high transaction speed with the average time of less than 3 seconds. And at the same time, the system is able to process up to 1 million of transactions with the minimal commission of up to 0.0001%.


The platform with the open source code offers smart contracts to users so they could develop and implement their own business proposals over the CREDITS platform in the popular programming language JAVA. The project has its own local cryptocurrency of the same name and uses the technologies that do not require support from mining.


Summing up all of the above mentioned, it can be definitely affirmed that the application of blockchain technologies decreases the operating costs, makes all deals transparent and easily trackable, and also completely secures from the data loss. Blockchain platforms permit managing supply chains in a flexible way and protecting the intellectual property, and also minimizing considerably the amount of third parties in all business processes. Obviously, this technology has a big future, and this is why any serious businessman must ask him/herself if he/she wants to join it or not.


There are many blockchain projects and traditional companies who experiment with mutually distributed registries and blockchain technology. However, the main remaining question is: who will win and who will lose in this race?


The initial offer of coins (ICO) is basically an illegal way of gathering crowds through various cryptocycues (in some cases fat currencies) and is done by cryptokyurez to obtain necessary capital funds to implement the project. . In the ICO, a part of recently sold cryptocarcency is sold to investors in exchange for a valid proposal or any other crypto-currency, it can be said that it is a symbolic sale or a crowded sale for more visit ICO whitepaper, which means that investors should invest Quantity is given and they are provided with some tasks related to the project to be started.