digital currency

Blockchain Technology

You may have heard about cryptocurrency and digital currencies like bitcoin, but the blockchain technology is not so popular. However, we have to appreciate it because that is what has enabled the usage of bitcoin. Blockchain technology is a virtual public ledger that securely records all bitcoin transactions. Unlike the banks that will allow cash transactions, the blockchain provides for the free transfer of cryptocurrency through a decentralized system. The data is then held in an interlinked computer network, and it is run and owned by the users of the network. The benefits of this system are many, and that is why this system is believed to be relevant for generations to come. Enlisted below are some of the most vital benefits.

Supply Chain Management

workplaceThe blockchain technology offers numerous benefits to supply chain management. It provides the merits of traceability and cost-effectiveness. This is because blockchain can be used to track how goods are moving, their origin, and their quantities among other vital aspects. Therefore, transparency is facilitated, and this makes some processes simple. Some of the procedures include the transfer of ownership, payments and product process assurance.

Accounting

Recording transactions using the blockchain technology ensures that human errors are eliminated. It also protects the data because no one can tamper with it. Moreover, the records are verified every time they are passed from one blockchain node to the other. This, therefore, enhances the transparency and security of the data. The accuracy of the records will also leave a traceable audit trail. This, therefore, makes the accounting process efficient and the integrity of the financial records of an entity is ascertained.

Stock Exchange

forex tradingThe blockchain systems are open and reliable. It is therefore not surprising to hear that stock exchanges are in the talks and are considering it as the next big leap forward. In Australia, the stock exchange is switching to a blockchain powered system. This is to aid in their operations.

Quality Assurance

Once an irregularity is detected along the supply chain, the blockchain system can point out to the source of the inconsistency. It, therefore, makes it easier for business entities to conduct an investigation and execute the needed course of action. This is necessary for cases where businesses need to track the origination and batch information among other details for safety and quality assurance.…

bitcoin

The Merits of Using Digital Currency

Unless you are living under a rock, you have probably heard about the success of digital currency. The most popular one is bitcoin. It has a strong market performance, and many institutions are now accepting the cryptocurrency as a form of payment. By December 2016, it had crossed $2700 in writing. This was a significant improvement in its performance because it was previously valued below $ 1000. There are other digital currencies like alt coins that have also shown a remarkable increase in value over the years. To prevent fraud, bitcoin is based on the blockchain technology which is a distributed database that supports digital currencies. The transactions are recorded and decentralized through computers around the world. Below are some of the benefits of using digital money.

Low Transaction Fees

young ladyIt is expensive to use credit cards because sometimes the charges can be very high. The costs are high, especially when using one for international purposes. Therefore individuals feel the pinch of using them because the interest charged on them could vary from two to five percent. Instead of paying some amount in transaction fees, consider using digital currency. This is because it is cheaper to make transactions using bitcoin and other digital currencies as compared to using credit cards. Sometimes, the transactions are free of charge.

No Inflation

Inflation is a big problem in third world countries. Central banks often inflate their currencies so that they can keep their heads above the water. Even in the United States, some contend that the inflation rate is higher on so many products and services as compared to the Consumer Price Index. However, with digital currencies, there is no inflation. This is because the quantity limits are controlled as well as the algorithms in the system.

No Charge-backs

moneyThe use of digital currency eliminates the fraud that comes with from charge-backs. Customers may purchase a product and use it, only for them to ask for a refund from their credit companies due to a falsified reason. Businesses will categorize such costs as the cost of doing business. When using bitcoin, there are no charge-backs. Once you receive the transaction from a customer, the sale is complete. You can, however, refund where you deem that to be the right decision for your business.

Fast Transactions

It is faster to process transactions using digital currencies as compared to other forms of payment. The transactions take just a few minutes although due to the high usage of bitcoin, there has been a noticeable slowdown.…