Cryptocurrency madness has been taking over the way we transact nowadays. Likewise, Blockchain technology is a big game-changer as it revolutionizes recording and managing currency movements. In a way, it replaces the role of a central bank or governing body. With the proper usage, the business can significantly benefit and grow from this, and it will not be long until this becomes a norm in doing transactions. Keep in mind, investment in knowledge pays the best interest over time. Here are some key benefits of using Blockchain for business-to-business payments.
Innovation can ensure that your money efficiently works pretty hard for you, not the other way around. Even though Blockchain is a relatively new technology for some businesses, many organizations across multiple industries have been exploring it and finding ways to ease transacting. Also, many central banks are shifting towards payments systems that integrate blockchain technology. Since it is the underlying technology of many cryptocurrencies in the market — like Bitcoin, Litecoin, and Ethereum — it is significant to know several ways to obtain these coins. For these three, most if not all of the trading platforms you can name trades them. In addition, there are many operating systems available on the web that you can use or infuse to gain these coins—either bitcoin or litecoin miner software. These are nice to have to focus on speed, efficiency, and broader coin distribution.
Paying with crypto lowers the fee by up to 75% versus the traditional way. If you transfer money via wire transfer or credit cards, there are huge fees involved. And business does this a lot, so if you multiply the number of transfers and the costs it incurs, it adds up to a significant loss that can be potentially waived using blockchain payments. In addition, a decentralized ledger could smoothen the payment transaction at lower fees than traditional banks. Since recording in a blockchain is more efficient than conventional payment methods, it can cut business costs. It also reduces manual tasks of recording and altering data along with trouble-free reporting and auditing procedures. Moreover, it eliminates mediators or third-party service providers, which explains the primary advantage of using it. Cost reduction is a good and soundproof option especially doing a B2B transaction, as the fees do not eat up most of your investment and can be re-allocated more on money generating ventures.
By removing unnecessary intermediaries, blockchain transactions are significantly faster. Though transaction speed varies depending on the speed of your network, it is still steadier than the traditional methods. Blockchains also speed up transferring funds from one country to another. So in just some clicks on your computer, funds can be anywhere you want them to be.
Traditional banking transactions often take a lot of time to process, and it takes days to complete a transaction. In blockchain technology, the trade’s speed increased to a great extent. The overall banking process takes around two to three working days to settle, but with the introduction of Blockchain, the time is reduced to nearly minutes or even seconds. This will be really advantageous if you are dealing with business overseas or making frequent global payments.
Security is one of the features of Blockchain that businesses can certainly benefit from. Blockchain creates unmodifiable records of transactions which mitigates the chances of fraud and unknown activities. In addition, data on a blockchain is stored over a network of computers, making it impossible to get through. Furthermore, blockchain technology is highly secured because every individual who enters the Blockchain network is equipped with a unique identifier linked to his account. This ensures that the owner of the report himself is operating the transactions.
The ability to verify user or customer identity is one of the key factors in the financial services industry. The usage of blockchain technology’s built-in cryptographic protection offers a desirable identity safety feature that allows for increased data security.
Furthermore, the block encryption in the chain makes it more challenging for any hacker to disturb the traditional setup of the chain.
Blockchain has been proven to improve business processes efficiently. It is a given that businesses need trust to transact with one another. Fortunately, in a blockchain transaction, it speeds up the creation of trusted relationships. Furthermore, network users will have their security keys because a blockchain transaction is recorded using cryptography. Creating immutable ledgers is one of the central values of Blockchain. Any centralized database is subject to getting hacked, and they require trust in the third party to keep the database secure.
Having said that, Blockchain is a shared ledger that processes transactions in real-time. It improves accounting efforts by lowering overall costs, which are often associated with the reconciliation of ledgers and other trouble that may occur in manually recording transactions.
Additionally, for the global market, Blockchain can offer seamless transfer of payments as it will not require you to exchange your asset to a fiat currency to complete a transaction, which will cost more time and more fees. It is also beneficial to the business in developing countries as they will be able to enter the marketplace via the internet for a broader audience.
It is certain that the revolutionary technology that blockchain offers has a significant impact on financial services and how we transact business. The benefits of using Blockchain for business-to-business payments are undebatable, be it the lower fees, faster transactions, and safety. It is no doubt that in the future, there will be an increase in the number of companies that will follow suit in adopting blockchain payments as another way of transaction. With all the changes and growth that are happening now, it could be sooner than later.
So if you are a business looking for innovative ways to improve your payments process, now is the time to dive into this new technology that will significantly benefit your business, whatever industry you may be in.
Hanna Zaragoza is an experienced Content Writer and Crypto Analyst at The Top Coins. She has been following the development of blockchain technology for several years. Hanna aims to provide people with financial insights into the cryptocurrency world.