Issuing as a mysterious concept narrowly known by those in IT and developing into worldwide hype, cryptocurrency has become a controversial phenomenon in today’s world. Recently, experts, as well as ordinary people, were sharing the same question: is it a new word in the value exchange sphere or just a hype that won’t last for too long?
Today, we see the tendency more clearly. Bitcoin continues to influence the macroeconomy, and pretty much everybody believes (or wants to believe) that digital currency will bring about a bright future. As such, more and more industries and businesses are incorporating this technology into their functionality.
The main reason is clear: the probability that Bitcoin is going to become a universal asset is high. Let’s discuss some advantages of cryptocurrency in ecommerce.
Maybe, the best thing about cryptocurrency is a decentralized exchange. This means that a single authority, be it a bank or any financial corporation, does not control the process. Instead, all payments are regulated by blockchain, an advanced database that stores, displays, protects, and transfers money. All transactions are transparent and can be viewed at any time by anyone. Operations are controlled by smart contracts technology that allows users to exchange money and other values transparently without any services of the third parties. All obligations are enforced automatically, so there is no room for cheating.
Credit and debit cards are dependent on the third parties, which charge transaction fees for online payments. As we have already mentioned, cryptocurrency is decentralized. As such, there is no one to charge fees for your Bitcoin transactions, and they happen between two people only. Still, there are online exchanges that help users convert cash to cryptocurrency and one coin to another. As a rule, such actions do have additional fees. However, transferring money from person-to-person doesn’t require any commissions.
There are numerous benefits of Bitcoin, including fast transactions made in a couple of seconds. Operations performed in the cryptocurrency network are immediate because they don’t have to pass any instances like banks and settlement organizations. Ecommerce companies, especially the large ones, have high transaction demands, so fast payments can improve the way they work significantly. The high capacities of blockchain allow performing multiple transactions per second. On the contrary, traditional currency transactions may need hours and even days to reach a payee.
Remember when online credit card payments were just emerging? There were a few companies that started using this method when it was still in its infancy. For example, PizzaNet took a chance and normalized the idea of online payments. The same is going to happen with cryptocurrency and those businesses that embrace the technology early on. When more and more companies adopt cryptocurrency, its popularity and demand grow. As such, massive acceptance approaches faster.
Another reason to use cryptocurrency is surely its security. Blockchain uses advanced cryptography and encrypts the path of every transaction. As such, it becomes impossible to identify neither a sender nor a recipient, which provides anonymity to both. Cryptography also serves to protect the system from hackers and thieves, since all the transactions are connected and cannot be changed manually. It is impossible to sneak into the network and transform the data because of complicated security algorithms that cannot be broken by a human being. This technology also saves cash from double spending, since every record is unique.
Bitcoin and other types of cryptocurrency provide fantastic opportunities for decentralization, safety, and transparency. Everyone can use this technology and create new types of coins.
Digital currency opens a new environment, where sellers and buyers can cooperate more efficiently. Encryption methods make it impossible to steal money or falsify information because all transactions are controlled automatically by the algorithms, and no human being can influence the process.
As such, cryptocurrency has the potential to change the world of ecommerce fundamentally. Adapting it now might put you and your business ahead of the game.
What are your thoughts on this emerging phenomenon?