There are a great number of advantages that Bitcoin offers users over conventional cash and gives it a mass appeal and since there is no real way for third parties to identify, track or even intercept these transactions, Bitcoin is commonly praised for offering users greater reach to anonymity.
Even the absence of intermediaries, such as financial institutions or the involvement of the government in Bitcoin transactions makes it much more difficult for them to add any form of taxation to the transactions that take place, preventing any type of fees from the transaction. ;final user.
Bitcoin is a far better alternative to cards and fiat at the demographics of businesses and retailers than retail stores, at least when it comes to the additional costs associated with card transactions, due to the fact t has a price that goes from 3 to 5 percent for each purchase, simply to use this service. It costs a lot more money in this system, especially when it comes to transferring money from one country to another.
While Bitcoin has had an impact on a smaller scale between peer-to-peer transactions, there is a place where blockchain technology can have a widespread and very profound impact: and that community is the world financial and entrepreneurial.
Blockchain technology alone works like a distributed ledger on which transactions between two distinct parts are stored. Bitcoin miners are notified of a pending payment and pack this data with a number of other pending transactions.
This is roughly the way the bitcoin blockchain process works on a typical basis: a payment is processed with the use of a private key user and the public key of. the person . receive payment. The keys are a combination of an apparently random series of numbers and letters.
A mathematical formula, named "hash", is then applied to each transaction, respectively. This hash looks like a cryptographic fingerprint that makes a transaction verifiable.
The subsequent assimilation of Bitcoin brings us one step closer to a broader refinement of the accounting profession, with day-to-day operations within the accounting that manually require a great deal of checks and balances to ensure accuracy. of financial transactions. it is for this reason that both internal and external audits of a company are as cumbersome as they are expensive to instigate.
The perfect source for records when it comes to a check? Blockchain technology. Because? Any transaction stored on the blockchain is simply impossible to handle badly due to incompetence or general human error.
Blockchain has the ability to simplify traditional operations once again, focusing on the man from finance and content production, from services to consumers, from insurance and technology licenses and development.
When it comes to contracts, multiple parties can be involved, leading to increasingly complex payment processes, expense exaggerations and ignored license terms.
Another solution to these problems are the Smart Contracts managed by the Ethereum blockchain, which automatically executes the terms of a contract without the need for a third party.
When it comes to a contract, it can be incorporated into the program, and once the obligations of a mutually agreed contract, the terms are made fully viable. Simplifying online payments and contractual obligations allows you to simplify your business operations.
A cash contract, ideally, would allow a two-party negotiation before the entire transaction process. After the shipment and receipt have been fully verified, the smart contracts automate the transfer of funds to the suppliers, contributing to the overall cash flow of the supplier and, consequently, decreasing the amount. monitoring of the back office for supplier suppliers' accounts.
In this way, companies can keep a record of each transaction by receipt and with. invoices. aspects such as human error or unscrupulous practices sometimes hinder the production of accurate transaction log accounts. The advantage of blockchain technology is that it is not based on trust and manual human effort.
With an intelligent contract, the distributed ledger would be openly available to both parties, recording all transactions between the respective parties, which is also distributed and sealed on a particular cryptographic register. This system makes it almost impossible to alter or falsify these records.
Blockchain technology could also accelerate and simplify supply and supply chain management and supply chain management. At present, there are only a few companies that have created a decentralized peer-to-peer network specifically based on the Ethereum protocol. This type of protocol connects the likes of carriers, bankers, traders and other stakeholders in the supply chain.
Decentralized data storage technology enables documentation without documents and a single source of storage for all parties.
Large companies like Walmart have recently integrated blockchain technology as a means of tracking the various product shipments from source to point of sale. When it comes to the many steps of inventory management, it is possible to do so at a much higher level of efficiency when a company uses a shipping tracking system supported by an integrated blockchain system. Purchase orders, receipts, invoices and payments are all incorporated into a chain.