The concept of decentralization is one of the most powerful concepts of the modern business world. In today’s world of business, several pain areas have been identified which have acted as a major hindrance to the distribution of value across the supply chain. Accordingly, tech experts across the world were looking for a platform that would simplify the complexities of the world business and tech supply chain. Taking into consideration all sub chains in the global economy; we are taking into consideration a global business model.
The first tryst with a global solution in terms of a decentralized world economy came with the concept of blockchain by Satoshi Nakamoto in the year 2006. The blockchain technology offers a decentralization structure which would eliminate the complexities of a centralized economy. There are certain aspects of blockchain technology which would have a significant amount of impact on the overall functioning of value chains.
What is unique about cryptocurrencies?
The cryptocurrencies are virtual currencies that offer a significant amount of protection against the red tapes of government compliance agencies, rules and regulations. Generally, major global trading platforms have taken a hit owing to the complex response system of government agencies considerably slowing down the entire process of government regulations.
How would they bring about a transformation to the entire business network?
- A safer trading ecosystem – The cryptocurrencies offer a very safe trading ecosystem for the participants. In short, there are certain aspects of the trade which are equally efficient in ensuring the sanctity of global trade. Imagine a trading platform where there are multiple participants across the globe but each of them is looking for a transacting platform that would be bypassing the conventional banking networks. Blockchain along with cryptocurrencies, has the potential to transform the very essence of a trading network.
- A faster transacting ecosystem – The speed of transactions increases with the usage of cryptocurrencies since it can be transacted between willing beneficiaries without any hindrances. A world class trading ecosystem would ensure quick transactions without monetary gaps and hindrances in place. The business fraternity would benefit from such a quick trading platform. However, there is still a long way to go before we can expect a fair amount or large scale adoption of cryptocurrencies.
- A hassle-free transactional platform – While international remittances can take a significant amount of time to mature; crypto-based transactions can take a few minutes or seconds to mature.