How can Ethereum advance your business?
Ethereum, the second-largest and known cryptocurrency, has rapidly developed into one of the best business tools. Besides being accepted as a payment option in many companies, Ethereum’s blockchain solutions have the potential to solve many current issues, such as security, data maintenance and cloud. At the same time, if you want to buy Ethereum on Binance, you’re provided with many ways to do it, from credit card to P2P trading. This helps facilitate the buying and selling process, but this is not the only reason why Ethereum is so innovative.
Ethereum’s developers and the entire community are known to be eagerly looking for ways to improve the blockchain and cryptocurrency. For example, the last upgrade, the Merge, made the long-awaited change from PoW to PoS, helping minimize the network’s energy consumption by approximately 99%. And since mining is a complex and energy-requiring process, this upgrade set the standard for other cryptocurrencies.
With all the benefits, Ethereum can be beneficial for a company from other perspectives. Here’s what you can achieve with it.
Ethereum has provided the space and tools for developers and regular people to create DAOs (decentralized autonomous organizations). These member-owned communities help businesses engage with all sorts of investors and customers, as well as safely raise funds for a cause. DAOs are a reliable and unique way for people worldwide to collaborate as strangers to manage a project’s funds without the risk of someone stealing crypto or hindering the process.
DAOs work with the help of smart contracts, which are programmed to set the rules and hold the group’s money. The rules can’t be changed once the project is live on the blockchain, only if the group votes in unanimity. Therefore, the DAO doesn’t require any central authority since the smart contract program has already been set. These decentralized systems can also be used for the following actions:
- Collective ownerships
- Ventures and grants
All activity on the Ethereum network is public, which increases transparency and confidence in the fund project. At the same time, all services offered are managed automatically, such as the distribution of funds, which eliminates the possibility of manipulation.
One of the biggest perks of Ethereum is the smart contract feature that doesn’t require intermediaries to confirm any agreements or actions. They can work separately or in collaboration, but you can use them for the following business tasks:
- Allowing funds to be spent automatically after all members digitally sign the contract;
- Managing the agreement rules of users’ contracts through encoding;
- Analyzing outside data of any kind to facilitate the agreement;
- Storing essential information, such as membership records;
As a business, you can use Ethereum’s smart contract feature by owning ether, the official token. You might need a wallet tool to send it, but many Ethereum apps can help you start this programming process. Your developers only need to write the codes and send them on the network so that once it is employed, no one can change it and use it if they don’t follow the programmed rules. To keep the network running, you might need to pay some fees that are not fixed ―they can increase when the structure gets congested.
Managing considerable data collection of customers and all their interactions with your company isn’t that easy for both small businesses that need to do this manually to bigger companies that are prone to mistakes. A solution for all these organizations would be to implement Ethereum ID tokens (that can be used for employees too).
Through this blockchain feature, your company can create an ID for every person interacting with you, but they’ll have to sign up with some personal information to make an account. Having these IDs in the system can help facilitate numerous tasks through smart contracts, such as building customer profile data by analyzing the set of IDs or improving customer loyalty by sending customized newsletters. Or for example, when one of your products is out of stock, smart contracts can help send an order to the suppliers and let customers know that their favorite product will be in stock soon. Clients can also be automatically rewarded for their purchases at your company. Overall, you can improve your company’s relationship with customers through automation, which will help you make a profit and considerable investments in developing better products.
A company’s capacity to increase its performance is linked with scalability factors. Scaling up allows you to grow and expand without lacking resources. These aspects are fundamental since a business can invest more in product development and better practices regardless of exterior factors. With Ethereum’s mainnet, your company can:
- Increase customer trust;
- Make operations more efficient;
- Create new business models;
- Become a competitive figure in the business community;
Depending on your business goals, you can deploy your systems on a public or private network, and although they’re both beneficial for your tasks, you need to learn about their differences:
- The public blockchain Is secured by a considerable number of individuals and miners worldwide, whereas private ones have a small number of nodes that can be tightly controlled;
- Private Ethereum network may help achieve higher levels of performance since it uses high-performance nodes, but you may need Layer 2 scaling solutions in a public one;
- The costs of owning a business on the public mainnet might be lower than a private one since there only transactions require specific fees;
- The public network is open to anyone around the world, while private spaces need to authorize someone’s access;
- Storing data on the private chain might be safer than the public one because access can be controlled;
Ethereum is one of the most emerging cryptocurrencies and blockchains on the market. It facilitates transactions through the use of smart contracts and provides multiple benefits to both regular people and businesses. And since it’s constantly evolving, Ethereum may be the best solution for future companies to facilitate all sluggish tasks and help them grow.