Since the advent of blockchain and cryptocurrencies, the world has come a long way in its adoption. According to a Skoda Minotti executive, these two facets of a new technology will have a major impact on businesses. The disruptive technology could change the face of the internet as well as business management. It could also have a significant impact on the way people communicate.
Dennis C. Murphy Jr., senior manager at the firm spoke in an interview with Smart Business that business owners must know and understand these technologies. He suggested that cryptocurrencies are volatile. Therefore, investors must be aware of how risk averse they are. The value of any coin can even go to zero and one must know that there is a worst-case scenario where you could lose it all.
Businesses transacting in these currencies must understand the operations considerations. This would include the administration of these currencies, which will demand an advanced and robust method of tracking trades, receipts, and payments. These currencies lack regulation because of which no body will hear disputes related to them. This could be a serious threat to businesses. Working with a trusted and knowledgeable adviser is the key to this.
He said, “A company that accepts bitcoin as a form of payment could potentially expand its customer base as a result. It’s a global phenomenon, so the move has the potential to open up the business to the international marketplace.”
At the same time, digital coins can “reduce payment processing fees” because the transaction charges are lower than the credit cards. Once a transaction is completed, it becomes cemented in a permanent ledger that cannot be altered. Therefore, there are no questionable chargebacks and no moving away from responsibility.
On the state of blockchain adoption, he seemed convinced of a positive response from the governments around the world. The technology is currently being used in property sales and title transfers around the world which helps in reducing paperwork manifold. This makes it difficult to forge records too. The automotive industry looks specially interested in this tech. They are using distributed ledger technology to manage their supply chains, reduce human errors and handle wastes more effectively.
Industry insiders like Murphy are certain that these DLT technology can be used to make their systems more efficient and reduce costs as well. Therefore, it is now being used in banks and even healthcare system. He added that banks are “also using blockchain to transfer money faster and cheaper, and to more easily obtain compliance information on their customers when dealing with regulators.”
Any organization that handles large volumes of data every day, which increases chances of frauds and errors, is looking forward to experiment with these digital ledgers. The change in perception means that the DLT will be everywhere in the next 10 years and create new horizons for businesses as well. After the internet, it is one technology that would definitely help businesses and citizens in revolutionary new ways. As new businesses adopt the technology, it will mature and present new use cases as well.
