Using the Blockchain for the Digitization of Business Practices
In the past decade, modern day business has focused on the digitization of data, payments, and business practices. The result has been reduced cost of operation, increased speed of information, payments, and communications, and an overall increase in efficiency. Businesses that optimize the amount of processes and information that can be digitized reduce costs and increase the efficiency of the entire firm.
Think about it like this. If a business were to use digital technology to send a memo around a large office electronically rather than deliver paper copies to each employee, that business would be able to save the time needed to distribute a hard copy of the memo around the office (which could be used to do something else productive) they would save the money for the paper and ink, and everyone in the office would have instant access to that information.
Similarly to office memos, each time a company chooses to send an invoice to a customer, they save on paper and ink, as well as the postage cost when they choose to send the invoice electronically rather than physically. Email technology significantly reduced operating costs for businesses and increased the speed and efficiency of business communications.
Blockchain technology has the ability to significantly increase the speed in which digital payments are done as well as significantly reduce the costs. For large payments and invoicing, most companies turn to payment processing options that take care of customer payments, but the fees and speeds of those transactions can be improved.
Many large businesses have ignored implementing Bitcoin payments, but as we have seen over the past few months, many firms are taking up Blockchain technology and leaving Bitcoin behind. Blockchain technology offers significant speed improvements over Automated Clearing House (ACH) money transfers. PayPal offers instant payments, but it still takes 3-5 days to deposit a PayPal Balance into your bank account.
By digitizing payment solutions and implementing peer to peer networks of payment systems, businesses can implement faster and cheaper payments and order processing solutions without the use of Bitcoin itself. Accepting Bitcoin does not have very many drawbacks in general as Bitcoin payment processing companies offer very cheap payment processing and instant conversions to fiat to avoid the Bitcoin market fluctuations that previously scared off businesses.
Just as digitization significantly improved communications within business, the speed and cost of payments will likely decrease over time as peer to peer network technology is continually implemented.