We live in a digital world where cryptocurrencies such as Ethereum are used to pay merchants. There are a good number of individuals who have full confidence in digital currencies, as well as the technology behind them (we are speaking of blockchain here). Ethereum mining has become a lucrative venture for individuals looking for a steady income. While you store your Ether coins in your ERC20 wallet address, you are left with 2 possible options: hoarding your coins and expecting the value to rise, or use ETH to make payments to merchants worldwide. Every day, an ever increasing number of individuals around the world are turning to digital currencies after understanding their actual potential. It is a world where our association with money differs with each phase in history and our business relationship must also develop to meet a completely new financial landscape. Well then, what role does trade and commerce play in this brand new world and for what reason should existing organizations acknowledge cryptocurrencies like Ethereum?
First of all, we can reasonably presume that fiat currencies (that is, paper currencies) are rapidly reaching an end. Indeed, even before the advent of Bitcoin and the blockchain technology, the world was heading towards computerized money. Digitization of currency started with net banking and phone banking, as more and more people started to opt for NEFT and IMPS transfer. The account balances were reflected in computer and mobile screens, thus limiting the frequent use of physical currency. You are still paying the merchant, yet not really transacting in cryptocurrencies. Then again, debit and credit cards denoted the start of digitalization and somewhere, the end of physical money. The predominance of e-commerce has, in fact, put this theory in motion. Paper cash is gradually declining, mostly because it is not required in online retail.
Having mulled over this issue, what advantages can a business expect by accepting payments in Ethereum? The Ethereum market cap has unexpectedly shot up, with more and more individuals adopting this cryptocurrency. Well, a number of reasons exist for mining Ethereum, earning the cryptocurrency and then later on, using the same for payments. Even businesses have given a thumbs up when it comes to accepting payments in ETH. Indeed, you might be amazed to find that, there are numerous explanations behind a business acknowledging Ethereum, yet all the more astonishing might be the advantages of it. The principal benefit came as the deal itself and the second benefit came when Ethereum’s value skyrocketed. This has been the most effective advantage with organizations arranging for cryptographic payments that are not as easy as they appear to be.
Another alluring advantage for organizations is saving money. Each organization, irrespective of what it brings to the table, is endeavouring to make sense of how to bring down overhead expenses. Consider the possibility that you could dispose of all expenses related with the centralized banking framework, or other such financial mediators. This is precisely what you get with any digital money you consider, especially Ethereum. The decentralized idea of these currencies implies that payments are affirmed in time because of the rewards available to the crypto miner who have successfully created the blockchain record in a social and shared setting. This implies low exchange rates, which is yet another benefit for organizations. The transaction time is also faster, which is the advantage of the business as well as the clients. Less confusion, combined with direct control over individual assets imply that the users are less inclined to commit errors and will eventually utilize their cash freely owing to fewer pitfalls.
The next advantage for organizations who acknowledge Ethereum comes through the stock market. Keeping in mind the end goal to completely welcome this benefit, one ought to have a fundamental understanding of what is known as the blockchain technology. Blockchain as a record is not very complex to understand. Blockchain essentially records each transaction which occurs for a cryptocurrency. The basic distinction between conventional recordkeeping and the blockchain record is an issue of control otherwise known as centralization. At the point when a framework is centralized, it becomes liable to fraud and error. Blockchain has not altered the way we utilize cash, but it has surely altered the way we trust our exchanges. So, how does it affect organizations who implement the blockchain innovation and acknowledge cryptocurrencies such as Ethereum which are backed by the blockchain technology? Any individual who has it in him or her to understand the level of trust related with the blockchain technology will no doubt understand the worth of any organization implementing it in its business plan for future success.