The cryptocurrency market has experienced massive growth in recent years. This popularity is linked to the digital coins’ potential to offer unique benefits that fiat money doesn’t have.
Since more people have joined the crypto universe, businesses have had no alternative but to implement cryptocurrency as an alternative payment method. Ethereum is the second most popular cryptocurrency and is constantly evolving. With its many use cases, Ethereum has become a reliable cryptocurrency due to its outstanding features. Investors have the opportunity to make gains if they check the Ethereum price USD and invest strategically when the time is right.
Moreover, Ethereum disrupts the way companies operate. Reputable enterprises like Home Depot and Shopify already accept Ether as a payment method, and more businesses will likely join them soon. Organizations can’t survive in a competitive market unless they embrace innovation. From managing significant amounts of sensitive data to holding themselves accountable to regulatory and safety standards in their industries, enterprises have a lot to do to thrive. Above all, they must have an infrastructure that processes countless transactions per second and ensure these transactions are secure. By accepting Ethereum, companies can thrive by facilitating different processes. That being said, let’s look at Ethereum’s pros for businesses.
Enhanced security
Unlike financial institutions, Ethereum provides a high level of security, and this is due to the way it is developed. More precisely, Ethereum is a decentralized blockchain platform that utilizes smart contracts which enable users to execute transactions without relying on a central authority. The following features ensure Ethereum’s security:
• Consensus. Updates happen under the blockchain protocol. Thus, no one except for the network’s peers and nodes can validate improvements.
• Immutability. Once the data is mined, it can’t be altered, changed, or deleted.
• Increasing capacity. Several computers work together to keep the blockchain as effective as possible, so there are zero chances for the system to shut down.
Security is an issue for many businesses, as over 75% of targeted cybercrimes start with an email. While big companies are also at risk of experiencing a data breach, small businesses are the main target for hackers because they don’t have enhanced security measures. However, the Ethereum blockchain can dramatically reduce these security issues, and companies can ensure clients’ money and data are kept safe.
Faster transactions and reduced fees
Money matters to any business, and every company’s goal is to reduce costs as much as possible and maximize profits. Thus, one of the critical reasons why more ventures should accept ETH is that it helps minimize transaction fees when dealing with customers. Traditional methods like PayPal or bank transfers can take a considerable chunk out of ventures’ revenues if payments are made via these channels.
Time is money, and this is true especially when it comes to businesses. With Ethereum, you can also save time, as transactions take only a few minutes to process. Thus, you don’t have to wait too long to get the cash in your bank account. Unlike PayPal transactions or bank transfers which are completed within 2-3 days, ETH transactions are processed quickly, helping businesses earn significant money.
Privatization through DAOs
One benefit of owning a business is hiding important information from network participants by creating a private group. This allows you to encrypt the data and share it only with specific parties. These private groups are known as DAOs or decentralized autonomous organizations, enabling organizations to commit funds and collaborate more safely.
DAOs have a democratized system, meaning they allow members of the group to vote on any changes. There are different options for memberships, which determine the way voting works:
• Token-based membership, meaning that you can vote only if you own tokens.
• Share-based membership, which allows you to contribute to the group if you can bring value to it in the form of tokens.
• Reputation-based membership, which requires proof of participation to grant voting power.
Worldwide outreach
Many businesses operate digitally; thus, they have become more globalized than ever. If you don’t catch up with this trend, your company will likely suffer, putting competitors in a higher position. With crypto like Ethereum, you can procure goods for your venture from different countries without worrying about currency exchange rates.
Similarly, worldwide customers will feel closer to ventures that accept ETH. Banks usually charge fees, so if customers find a company that saves them money, they are more likely to use its services or products in the future.
Additional payment option
You can never have too many customers, right? Adding Ethereum as a payment method will expand your business, helping you reach more customers. People want different payment alternatives, and by offering them the opportunity to pay with ETH, you can make your customers happy by ensuring this need is met. Popular brands like Gucci and Amazon accept payments in various cryptocurrencies, and ETH is one of them. Other businesses should also consider adopting Ethereum to provide flexibility to customers and gain an advantage over their competitors.
Are you ready to include Ethereum in your business?
Ethereum is a powerful tool for ventures, allowing them to build different decentralized applications. Significant sectors like banking and public and private institutions have implemented blockchain technology as they became aware of its benefits. Ethereum executes smart contracts, which is one reason why businesses find it appealing. After all, it’s a convenient way to execute contracts for anything that two parties agree upon.
Companies are relying more and more on technology, and this isn’t likely to change in the future. Many have already embraced blockchain technology, as they want to make the most of its advantages. Ethereum provides different benefits for businesses, including simplified transactions and improved security. Plus, ETH-based smart contracts offer vast utility for ventures. There is a great chance that blockchain technology will soon become a non-negotiable for ventures, and companies who aren’t ready to adapt to these changes in the business landscape risk falling behind. After all, blockchain benefits customers too, and if they had the option to choose between a company that accepts Ethereum and one that doesn’t, who do you think they would buy from? Obviously, they would choose the one which accepts crypto as a payment alternative. With this in mind, will you make the decision to accept Ethereum in your company?
Investments in crypto markets are subject to market risks and no data or statement in FinSMEs is or should be considered a recommendation for the purchase, retention, or sale of the securities referred to herein.