Bitcoin and blockchain technology has been widely reported on in the past few years. As blockchain technology continues to evolve and becoming more and more mainstream and widely accepted, we can only anticipate it changing the entire way we conduct business. Knowing how it is going to end up changing things can only be understood once you understand the technology itself. Below, we will be discussing what blockchain technology is and how Bitcoin might change the way we end up doing business in the future.
What Is Blockchain Technology?
A blockchain is essentially an electronically delivered list of records in the form of a ledger. It is decentralized which offers immediate and real-time access and it is fully transparent as the assets are distributed instead of transferred or copied.
What Is Bitcoin?
Bitcoin utilizes this type of technology to enable payments to be sent directly between users without having to pass through any centralized payment gateway or bank .
Now that you have a better understanding of what the technology behind Bitcoin is, we can go into detail on how it is likely to disrupt the way we normally conduct business.
Ways It Can Change How We Conduct Business:
Bitcoin is quickly gaining steam in the marketplace. One of the things that Bitcoin has going for it is the fact that it offers instant results. Rather than having to wait days or even weeks for a payment to process, Bitcoin offers instant transactions. This is changing everything about the logistical chain because retailers typically have to wait for payments to process prior to shipping out goods. With Bitcoin, the payment is immediate which can reduce the amount of time for processing to zero. This alone can change the way we complete transactions because retailers will be able to make their logistics even quicker and more efficient as they won’t have that gap in between the moment a customer places an order and when they ship out the order. This is changing the way consumers want to shop because we as a society demand instant gratification in virtually everything we do.
2. Global Business Made Easier
Another significant way it is going to change the way we do business is by breaking down the problems with conducting global business. The fact is, a lot of countries simply do not have the financial structure in place to conduct a lot of business overseas. With this type of technology, global business is made as simple as paying for a good or service without worrying about transferring anything nor getting local currency. Because Bitcoin operates on a peer to peer basis, it allows payments to reach the intended destination easily without worry about the safety of the payment or anything going wrong. As we become a more global society, this is expected to be one of the driving forces for the fast adoption of blockchain technology like Bitcoin.
3. Eliminate Fees
There are traditionally a lot of fees associated with paying with credit cards or even paying with different merchants abroad. Bitcoin is a peer to peer service which means using Bitcoin to pay for goods and services won’t force retailers to pay for the commonly associated fees with credit card merchants like interchange fees . There are all kinds of different things a credit card purchase has to go through to reach its final destination. As a result, to keep these channels operational, fees are charged to the retailer. Something like Bitcoin can completely flip this model upside down because the actual service is peer to peer which means it won’t require the retailer to pay any fees to receive the payment. This alone is big enough to alter the way smaller sized businesses think about Bitcoin and the kind of impact it can have on their business.
Overall, Bitcoin has the opportunity to completely flip how we conduct business upside down. It can benefit both retailers and consumers alike with widespread adoption.