Blockchain can be rightly referred to as a technology that has changed the financial world. It has brought about drastic changes in the financial industry. The adoption has become one of the most debatable topics in financial technology in recent times. The potential of these digital coins and technology has been the source of excitement within the business world globally. Entrepreneurs are also willing to take advantage of this technology and are searching for ways to incorporate this tremendous technology in their businesses to reap future benefits.
However, since this industry is still in the developing phase and due to the rise in scams investing is still susceptible. The regulatory standards are still developing which might cause impediments in the development of this industry. Although due to current scenarios it might seem a bit unstable, many businesses are considering to invest in this technology for both short and long-term.
What is Blockchain?
Simply put blockchain is a decentralised ledger from where bitcoins operate making this currency decentralised. The interesting aspect of this technology is that it develops the full history of every transaction which takes place within its domain. Each transaction is checked, verified, and records each withdrawal, payment as well as trade process without any third-party interference.
How is it benefitting financial growth?
Blockchain is beneficial for businesses in a variety of ways. From using it in everyday business activities or as initial coin offering as a means of raising capital this technology is opening doors to new opportunities for entrepreneurs.
- Security of transactions
It has helped in improving the security of transactions, lower overall fee costs while also reducing potential lag or downtime of the supply chain. With its faster and accurate transactions which are less prone to hacking, fraud or theft businesses are utilizing this technology to improve business to client transactions.
Since there is no third-party interference with payments the transparency aspect is what makes this technology more attractive for customers.
- Investing in assets
Using blockchain technology it has now become easier to allow investors to invest without paperwork and contracts just by simply purchasing tokens of value for that secured asset.
- Supply chain management
Blockchain offers traceability and cost-effectiveness for the supply chain management. This, in turn, helps to track the movement of goods, their origin, quantity and so forth which is further helping to be about a new level of transparency to B2B ecosystems.
The complete accounting process becomes efficient with blockchain. Instead of maintaining separate records, businesses can only keep a single, joint register. The reliability of a company’s financial information is also guaranteed.
- Peer-to-peer global transactions
With the fast, secure and cost-effective methodology of transferring funds businesses are now adopting this technology since they find it easier to process international payments.
Businesses can benefit from blockchain gaining financial growth and benefits if adopted after understanding and assessing their needs. Businesses should first analyze the aspect of blockchain technology required for their own needs, so they can achieve financial gains.
Freddie Achom- http://freddieachom.com
Freddie Achom is the Founder and Chairman of Rosemont Group and a notable entrepreneur and investor, residing in the UK and France.
He founded the international private investment group of companies to focus on financial services, luxury goods and services, hospitality, renewable energy and digital technology. Freddie’s vision for the group is clear: to be part of globalisation by creating and developing brands, concepts and solutions that will one day become recognisable.