Running a successful business is more than just making friends and revenue as you go along. The paper trail that you create as an independent business can sometimes be too much to handle even for the most skilled accountants. Enter blockchain, the new and improved way of securing and tracking financial information that stemmed from the need to track cryptocurrencies across the web.
This technology started as a neat idea to limit and control the number of bitcoins individuals can accumulate but has since bled over to different facets of the corporate market. Why should you utilize blockchain to make sure your financial accounts are safe and secure no matter how active or large they become?
- Straightforward transaction management
If you have any knowledge of cryptocurrencies, you know that these internet currencies fluctuate daily, meaning they need close monitoring and a good database of said fluctuations. Blockchain was introduced as a means to battle cryptocurrency hoarding, meaning that the system is cryptographically suited to keep your financial records safe and away from prying eyes. By implementing blockchain into your everyday accounting you would be able to keep track of and manage your transactions much more easily, as well as access any of them and a push of a button.
- Smaller margin for error
The ability to keep every single transaction you have ever conducted means that you effectively lower the margin for error significantly. This type of transaction tracking eliminates any possibility of error coming up in your business activities, meaning that your renown as a company will also be high.
An innovation brought on by blockchain technology is the fact that the entire tracking network works through peer-to-peer connections. What this means, in essence, is that every piece of information is always available to anyone on the network, which lowers the margin for error even more.
- Direct, peerless transactions
Paying small fees every time you conduct a transaction means that the bookkeeping you conduct also gets more complicated. Not to mention the growing expenses of conducting business by paying transfer and approval fees. Blockchain technology allows you to directly do business with your clients without the facilitation of banks.
This means that you can safely transfer money from one account to another without involving banks or other transfer facilitators. As a result, every transaction remains in-house and doesn’t involve the possibility of something going wrong on the bank’s side due to its lack of involvement.
- Cryptocurrency involvement
Just because blockchain started as a bitcoin tracking system doesn’t mean that you shouldn’t use it as such. Businesses sometimes opt for using cryptocurrencies to conduct their business, and this technology makes the logical choice when it comes to tracking and management of said transactions.
Whether you use bitcoin or some other form of cryptocurrency, you can safely do so while using blockchain and conduct business as you would usually. The only difference would be in your exchange rates which would reflect the choice of currency you have made. Using a currency with far more value than Dollar or Euro might be a good idea if you have large sums flowing in and out of your corporate accounts.
- Ability to pioneer and innovate
Currently, blockchain technology is successfully being utilized by 0.5% of the world’s population. This means that a significant portion of the population is still oblivious or unaware of the possibilities presented by the technology. While the global market is expected to boom around the year 2020 and see an influx of large corporations that will use blockchain actively, you can still get ahead of the curve. Being a pioneer in what is bound to be a new way of conducting business will allow you to grow exponentially in your corporate niche.
Both your clients and investors will be more willing to work with you due to your forward-thinking nature and the wish to innovate through blockchain. As one of the first one percent, you are able to bring innovation and new ways of thinking to the already established cryptography-based transaction network. The global financial ledger that is blockchain can only benefit from early adopters, and your financial accounts will reflect the fresh take you have approached in doing business.
What the future holds
No one can say for certain what shape blockchain will take during the next several years. What we can safely summarize however is that we are dealing with a more proficient and adaptive way of handling business and accounting across all mediums.
Using the technology to keep your financial accounts safe from prying eyes is a good way of introducing yourself to the more advanced ways of using blockchain in your business. Once you do, you will quickly grow accustomed to the plethora of possibilities presented to you.
About Author: Jessica Fender, pro writer and fintech analyst at Online Writers Rating, and at StudyClerk a platform for the customers, who want to find the best writing companies on the web. I am passionate about folk music and Dutch contemporary art.