Due to the growth of the cryptocurrency market, the number of businesses that have already implemented bitcoin transactions in their financial operations is growing, too. According to a survey, around 11% of enterprises are already employing blockchain technology in their operations today, while 75% are actively researching how they could do so.
Consumers are more willing to invest in cryptocurrencies, which is boosted by the fact that huge companies like Starbucks, Visa, and Amazon start to accept bitcoins for payments. This is the main reason why middle-size and small businesses are gaining interest in blockchain development services to join the crypto market.
The Rise of Using Cryptocurrency in Various Businesses
Many businesses consider cryptocurrencies both controversial and promising. The adoption rate of crypto between 2020 and 2021 has been increased by 880%. Although cryptocurrencies are mostly considered as the instrument for investment, they can be used in different areas, for example, for purchasing goods and services.
According to Deloitte, more than 2,300 US businesses accept bitcoin, and that doesn’t include bitcoin ATMs. According to Business Insider cryptocurrency is mainly used in the financial and retail sectors, healthcare and energy, industrial manufacturing, and logistics. 2018’s PwC Global Blockchain survey found out that organizations offering financial services are the most advanced users of the blockchain technology (46%). As far as other industries are concerned, the adoption in the energy (12%), healthcare (11%), retail (4%), and government (8%) sectors are almost at the same level, which is still far from the financial and banking sector.
What Is Bitcoin and How Does It Work?
Bitcoin is a digital currency that can be sent from user to user on the peer-to-peer bitcoin network, without any third parties involved, such as bank, tax, and other state authorities.
Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
All transactions can be found in a public ledger. Anyone who has a computer can set up one of these servers, known as a node. Agreements on who owns which coins are reached through cryptography across these nodes.
Every transaction is broadcast to the entire network and shared across nodes. Miners gather these transactions into a group known as a block and add them to the blockchain. This is the account book for bitcoin.
Virtual currencies are stored in digital wallets and can be accessed by client software, similar to how traditional coins are kept in physical wallets.
In practice, there is no such thing as a bitcoin or a wallet; rather, an agreement among the network on who owns a coin. When making a transaction, a private key is used to prove ownership of funds to the network. A “brain wallet” is a concept in which a person can simply memorize their private key and use it to access their virtual money.
Advantages of Bitcoin for Business
In recent years, many businesses have adopted blockchain technology and integrated bitcoin transactions, and here are the main reasons for it:
- Transparency. With blockchain technology, there is a capability to build a completely transparent environment for trading as bitcoin transactions are recorded publicly and can’t be changed without being verified by all sides.
- Security. Since the bitcoin network is based on the blockchain technology, it’s highly secure for businesses. Compared to a traditional centralized system, the bitcoin network has no central server that is typically vulnerable to hacking or fraud attacks.
- No intermediaries. Transferring funds in bitcoins allows transferring financials without involving third parties which not only streamlines transaction processing but also reduces costs on intermediaries’ charges.
- Innovation. Bitcoin-based payments and funds transferring offer an alternative to a traditional business model, which grants an advantage over competitors.
- Contribution to environmental sustainability. Sustainability is one of the latest trends most businesses continue to follow in 2022. As a type of digital currency, bitcoin avoids the necessity for cash transactions, reducing the environmental impact of deforestation.
Main Advantages of Using a Bitcoin Wallet App
Businesses and customers use a bitcoin wallet to store, send, and receive bitcoins. It’s similar to a digital wallet, but the bitcoin wallet keeps the cryptographic information required to access bitcoin addresses and send transactions. Let’s look into why bitcoin wallet apps are beneficial for your business operations and customers while trading with cryptocurrency.
Quick Transactions for Customers
Nowadays, many cryptocurrency traders use decentralized wallets where the cryptocurrency is not tied to any bank, and here’s why it’s beneficial.
As the blockchain-based payment system doesn’t require a bank as an intermediary for transactions, it needs strong protection of customer bank accounts and credit card details. When using a bitcoin wallet app, customers don’t need to reveal their bank account credentials to make bitcoin transactions. With cryptography encryption techniques applied, customers can conserve their sensitive data when making transactions with no banks involved.
No Global Boundaries
Bitcoin transactions don’t have global boundaries. A trader from Europe can send or receive bitcoins from a trader based in the USA, for example. Still, there may be specific regulatory challenges, but if both parties are willing to make a transaction, there are no geographical boundaries.
Fewer Transaction Errors
The use of bitcoin wallets means the reduction of transactional errors. It makes it easier to send and receive funds with no miscalculations that may occur when dealing with cash or losing important transactional data. It’s especially crucial for businesses that have to make transactions with international traders.
Easy Backup Capabilities
Digital transactions require an easy and secure way to back up data and funds so they aren’t deleted. Bitcoin wallets allow businesses to leverage such an opportunity, reducing the risks of data loss.
Integrating bitcoin payments may be challenging for businesses, but what’s really clear is that this digital currency provides a competitive advantage to stand out in the market. With introducing bitcoin payments, your business can attract new customers who are looking for more transparent and quicker transactions.
By collaborating with a reliable blockchain development company, you can easily integrate cryptocurrency payment capabilities into your business and let your customers conduct bitcoin transactions safely.