Smart contracts could drive business to business payment boom, causing Blockchain adoption to soar.
A growing number of companies globally have begun to accept cryptocurrencies for payment. For individual payments, this process is relatively easy – simply using a wallet, and making a transfer via a Bitcoin payment gateway completes the process.
While the process is simple enough, many customers choose not to use their digital currency in this way, electing rather to hold them for asset gain. However, a growing possibility that cryptocurrencies could be used via Blockchain technology as a means of business to business payments (B2B) may move adoption to a whole new level.
Business are held to a higher standard than individuals when it comes to transparency (KYC principles), meaning that anonymity kills business. However, with verified digital wallets, smart contracts could be used to make extremely simple and fast payments. According to one commentator:
Smart contracts as technology can readily be used to automate transactions. Businesses could already benefit from the reduced friction in the fulfillment phase of agreements. Jincor verifies the identity of individuals and companies that use the platform to ensure that transactions occur between legal entities.
Accenture reports huge savings
By reducing the overall friction and time loss from traditional B2B transactions, smart contracts would save businesses huge sums of money. Accenture, for example, has already reported that up to $12 bln in savings could be realized as businesses adopt Blockchain technology solutions, especially in the financial sector. Per the report:
“Blockchain technology could reduce infrastructure costs for eight of the world’s 10 largest investment banks by an average of 30 percent, translating to $8 billion to $12 billion in annual cost savings for those banks.”
Further commentary by other large banking magnates also indicates that Blockchain adoption is growing at astronomical rates. Even the infamous Jamie Dimon has embraced the Bitcoin-supporting platform. Adoption will continue to grow, even as the technology continues to prove its usefulness.
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Author: Jon Buck