The business world has been under many changes in the past years, especially due to the pandemic. From small businesses to big enterprises, the secret to success, even in tough times, was to adapt and reshape the market according to the people’s preferences and socio-economic events.
Thus, one of the biggest improvements businesses can make now is to accept cryptocurrencies, given that they had a roaring success from the beginning, when, in 2008, Bitcoin was released. This has strongly impacted further cryptocurrencies, with better and continuous improvements, like Ethereum, which offers much more than the value of a currency. So, let’s see how Ethereum can benefit businesses.
Understanding Ethereum
Ethereum, similar to Bitcoin, is a blockchain technology through which you can process financial transactions. But it also offers much more. Ethereum is where you can keep your digital money safe, make global payments without third parties involved, and create and use applications. Its decentralized finance (DeFi) system makes it easy for just anyone with an internet connection to send, receive, borrow and earn interest.
It’s also become popular recently due to its ability to tokenize your art, meaning that anything you own can be represented, traded and used as NFTs (non-fungible tokens). What makes it so easy for this blockchain to be open for almost anything is the community that contributes to the website, looking for improvements and sharing their knowledge with the world. All in all, Ethereum is a great place for everyone who wants to upgrade their payment method and get creative.
This technology’s token is called ether (ETH) and is the second largest crypto next to bitcoin. You may use ether to buy products and services and even own it as a “store of value”. If you’re interested in ether price, you can look it up on Binance and compare it to other coins. Even though the prices fluctuate, Ethereum’s platform has an unlimited maximum supply of coins, meaning it’ll never get to an end, as Bitcoin is expected to do soon.
How can Ethereum help businesses?
Now, some businesses have started to accept crypto payments because blockchain applications have the following benefits:
- They can reduce the cost of coordination between companies;
- They help improve network accountability and operational efficiency;
- They can value creation opportunities;
Ethereum has already created the public Mainnet, where you can build enterprise blockchain applications. Moreover, any business can also create private blockchains based on the technology for more privacy, node permissioning, performance and immutability. Here are the top three benefits a company can have by adopting Ethereum:
Data coordination
Ethereum is a decentralized technology that uses smart contract functionality. This means that the blockchain is trustworthy and better allocates information; therefore, network participants don’t have to rely on another financial entity to manage the system and perform transactions.
Private transactions
We know how important privacy is these days, especially when small businesses are the victims of data breaches. But with a private transaction layer on the Ethereum blockchain, transactions are easier and safer to perform, as private information is never broadcast to network participants. All confidential data is encrypted and shared directly with relevant parties.
Scalability and performance
Business scalability is very important for growth because if the enterprise can cope with any challenge, it can be called successful. So, a scalable business can outperform the public Mainnet and scale up to hundreds of transactions (or more), depending on network configuration.
Developer resources for enterprises
Different organizations have created the perfect resources for enterprises that want to center their work on the Ethereum blockchain:
- The Enterprise Ethereum Alliance (EEA) helps develop new business opportunities and drive industry adoption for organizations that are interested in building a public Ethereum Mainnet.
- The Ethereum OASIS Open Project provides a helpful forum for stakeholders that need specification tips or to share high-quality information. The project aims to facilitate Ethereum’s longevity, interoperability and ease of integration.
- The Baseline Protocol combines advances in cryptography, messaging and blockchain in order to provide businesses with secure and private processes at lower costs through the public Mainnet.
You can also find it on the Ethereum blockchain for enterprises:
- Products and services that help you implement the Enterprise Ethereum protocol;
- Tools and libraries for when you need real-time analytics;
- Scalability solutions that provide security, fast transaction processing capacity and low transaction fees.
Should your business accept Ethereum?
Amazon, Crypto Kitties or Travala already accept ETH payments (plus many other companies) because they know the benefits of a company that accepts Ethereum, some of which are:
- Lower transaction costs by offering a competitive transaction fee;
- Faster transactions. On Ethereum, transactions are processed within minutes.
- Globalized outreach. Now you can procure goods from other countries without having to worry about currency exchange rates, and this goes for your clients too;
- Additional payment option. Customers are pleased when there are more payment methods, as they can benefit from more flexibility;
- No more frauds. With Ethereum, you’re not required to enter any personal or account data, so you’re free from cyberattacks;
Ethereum is beneficial especially for eCommerce stores, because you can expand your customer base and have more business opportunities for the future. There is a broader market for tech-savvy customers, and it’s continuously growing, so you wouldn’t want to miss out on that.
You can accept payment in cryptocurrency through two methods:
- You use your personal wallet. Ethereum lets you set up a digital wallet that you can download on your phone or computer. You can also use a hardware wallet to store your cryptocurrency physically, but we don’t recommend this method if you’re a beginner;
- You acquire a third-party payment processor that can handle the entire payment process. This method is easier to adopt, as the processor instantly converts the cryptocurrency into fiat money, saving you from price volatility.
Final thoughts
Having a business these days is not easy because if you don’t adapt to the current trends and world events, you may not be relevant anymore to your customers. But adopting cryptocurrency and using Ethereum as an additional payment method can be a safer and faster choice for your business and clients as well.
