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Ethereum Adoption Transforms Businesses in More Than One Way

By: Luke Britton

 

Will Bitcoin and Blockchain Affect Your Small Business

The second-largest digital currency of the moment has emerged as a valuable public blockchain with a number of use cases, from DeFi and NFTs to stablecoins and DAOs. Ethereum could bring more upsides to your business than you can imagine. A 2022 report from the Ethereum Enterprise Alliance (EEA) suggests that businesses could use the Ethereum network to solve real-world problems. From payment solutions utilized by companies like PayPal and Visa to supply chain management use cases, the report reveals how the Ethereum ecosystem could benefit companies around the globe.

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This was in light of Ethereum’s most recent and notable upgrade, the Merge, when the platform transitioned from a PoW consensus mechanism to a PoS model. That has made Ethereum more sustainability-oriented and strengthened the platform’s security, changing how companies view the network. As a result, more and more enterprises have considered adopting Ethereum as an alternative payment method but also as an advanced version of Bitcoin.

Ethereum has undoubtedly gained traction among businesses, becoming a promising corporate tool and a viable investment option. Thus, many companies are already taking steps towards implementing it, scrutinizing the Ethereum price today with great interest. If you’re also enticed by Ethereum’s features, ensure you are aware of these unparalleled benefits of accepting the cryptocurrency.

Ethereum guarantees increased security

Blockchain technology allows individuals and organizations to execute transactions without the implication of a third-party intermediary such as a bank or government. Since Ethereum uses the same decentralized technology, it does the same. Smart contracts are the one feature that enables users to perform transactions with minimal to no effort but with great security. The pieces of code that dictate the terms and agreements between the involved parties allow for a safe, transparent, and scalable process.

Some of the features ensuring the network’s security include:

  • Enhancing capacity. Since several computers work together to maintain the blockchain’s maximum capacity, the chances for the platform to shut down are minimal to none.
  • Immutability. Due to the smart contracts embedded into the system, transaction data can’t be deleted, not even changed or altered.
  • Consensus. In September 2022, Ethereum transitioned from PoW to PoS, a consensus mechanism proven to be not only more eco-friendly but also more advanced in terms of security. Everything occurs under the blockchain protocol, so no one except for the platform’s nodes and peers can validate improvements. 

Since security has become a major concern in the business world, companies need to look for robust cybersecurity tools. Ethereum’s blockchain is equipped with anything that business owners might need in the fight against hackers, so ensure you spare some time researching this incredible innovation.

DAOs facilitate privatization

Decentralized Autonomous Organizations, or DAOs, could help you keep critical information safe and secure. It’s essential for companies to hide private data from network participants, and this is finally reachable with the help of DAOs. These organizations serve as private groups that allow you to encrypt sensitive corporate information and share it only with authorized parties. DAOs can also help you collaborate more safely and commit funds due to a democratized system based on voting. You’ve heard it right – voting! Members can vote on modifications depending on their membership options. Some of the most popular options include:

  • Reputation-based membership
  • Share-based membership
  • Token-based membership

Ethereum enables business expansion

One of the most common goals of any organization is to expand all over the world, and it’s only normal since this comes with a bunch of benefits. But the catch with this thing is that it’s quite hard to reach, all the more so if you’re a small local business or a recently launched startup. Indeed, it’s daunting but not impossible. Since digitization has become such a big thing, businesses are more globalized than ever. So, this is where you should focus in the first place. And by digitization, we mean everything from investing in the right software tools for your specific operations to adopting digital payment methods.

Cryptocurrencies like Bitcoin and Ethereum have become the go-to options for many companies around the globe, which now allow their customers to pay for goods and services with virtual coins. But the benefits of digital coins don’t stop here. With digital currencies of the likes mentioned above, you can procure goods for your business from other countries without worrying about the rates accompanying such transactions.

Digital currency payments are an excellent way to reach customers other than those from your country and make your business known to a larger audience. However, don’t give up on traditional payment forms – consider a diverse range of currencies instead, as this will offer clients choices.

More affordable transaction fees

Money matters to any organization, regardless of the industry it operates in, so ensure you spare no effort in minimizing costs of any kind. Transaction fees are a major issue, especially if we look at this long-term, so we recommend looking for ways to minimize these costs. Only this way can you maximize profits and push your company forward. As previously mentioned, cryptocurrencies like Bitcoin and Ethereum can save money associated with transaction fees and bring thus more cash into your pocket. As for the payment system you should use in this sense, it is up to you.

Be it a regular bank or PayPal, transactions can be completed either way. Just be sure to research requirements in this regard (if any) so as not to find yourself in a situation where payment systems take a significant chunk of your venture’s revenues.

Faster transactions

You’ve probably heard multiple times that time is money. Well, that’s true, which is why you should focus on saving as much time as possible. Saving time on transactions is one way to do that, and Ethereum promises success in this sense. That’s because transactions executed on the Ethereum blockchain are processed within minutes. Hence you don’t have to wait days to get the money in your bank account. And since so much time is saved, be sure you use it wisely on core tasks.

Ethereum disposes of a robust toolkit and can support more than cryptocurrency, so it has started to be in the limelight. Smart contracts, in particular, have grabbed organizations’ attention as they provide security, convenience, and rapidity.

Published: May 2, 2023
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