How far has blockchain advanced into federal and e-commerce spaces?
Call it piece by piece, but the unmatched potential of blockchain technology is certainly paving way for reorientation of the economy in the days ahead. Not to mention, the on-going developments in the blockchain realm tend to amplify the concept of decentralization without limiting it to just digital asset management. The term ‘blockchain’ made its public appearance with the inception of Bitcoin and has been in the spotlight ever since then. In short, blockchain is a disruptive technology that will not only restructure the system of financial transactions but would also send rippling effects across every industry.
Blockchain and the areas that it could influence
Although the terms blockchain and distributed ledger are used interchangeably, there exists a fine line between the two. The blockchain is only a type of the distributed ledger technology which employs a chain of blocks to secure financial transactions. This concept of synchronizing ledger using a consensus algorithm is what decentralizes cryptocurrencies, much contrary to the system of fiat currencies. Of late, the discussions on blockchain technology have proliferated to an extent that its applications are now being tested by both private and public-sector organizations. A study conducted by Gartner suggests that the blockchain technology is nearing the extreme ‘hype cycle’, which is indicative of its practical applications for enterprises. It’s true that the enormous applications of blockchain will open doors to a bright financial future. We have seen transformations like:
- Regulatory bodies issuing their own digital currencies.
- Introduction of blockchain payments in the e-commerce industry
- Payment for consumer goods through digital currencies at retail outlets.
- Cryptocurrencies taking over fiat currencies in countries where federal deficits are on the rise
What if federal coins enter the blockchain dominion?
Cryptocurrencies by definition are non-governmental, however, governments across the world are exploring new methods to introduce digital currencies in their financial system. Now the question is, how would they use the blockchain technology to their advantage? Firstly, federal authorities may issue sanctions on the circulation of crypto-backed digital currencies. However, the main anticipated reason behind the adoption of cryptocurrencies by federal institutions may include but is not limited to the following:
- Increased efficiency of transfer
- Advanced record keeping and tracking methods, and
- Elimination of printed currencies
A study conducted by the Bank of England reveals that cryptocurrencies have the capacity to boost the GDP by 3%. Also, a sweeping reduction in the transaction cost would bring in gains which are comparable to the revenue generated from tax. Government-backed cryptocurrencies can make monetary policies more flexible, to an extent that even negative interest rates may become commonplace. Yet, the possibility of blockchain integration with the mainstream economy seems to be at a distant future because of the element of unpredictability linked to this disruptive technology.
Cryptocurrencies to set foot in the e-commerce space
Onlookers and crypto-enthusiasts speculate that large internet retailers may soon start accepting cryptocurrencies as a method of payment. That said, there are small to medium-sized enterprises across the world that are accepting cryptocurrencies in exchange for goods and services. It was also reported that one of the giants in the e-commerce industry bought crypto-related domain names, which added substance to the speculation. Alternatively, these e-commerce players may also issue their own cryptocurrency. Early this November, Amazon was granted two crypto-related patents, but it is yet to finalize whether to introduce a new payment option for its platform. Overstock, a major competitor of Amazon in US markets became the first e-commerce company to engage the blockchain technology in its payment methods. However, Amazon has not distanced itself completely from introducing the blockchain method of payment and might accept the idea of dealing with crypto in the coming days.
The scope of digital assets is not limited to e-commerce and there’s an unending list of companies that accept payments in cryptocurrencies. For example, KFC Canada tried to boost their sales with the cryptocurrency theme and offered Bitcoin Buckets, which were sold out within an hour of the announcement. Subway, a popular restaurant chain accepts cryptocurrency payments in some of their outlets. Another big name is Microsoft, which allows its users to purchase content on Xbox and Windows store using cryptocurrencies. What is to be noted is that there’s stiff competition in the lower rungs of the ladder. Small to medium size companies are tapping into the prospective applications of blockchain technology to gain a competitive advantage over each other.
The idea of cryptocurrency becoming a legal tender is much of a far-fetched dream today. However, considering the transformative capabilities of the blockchain technology, the chances of it can’t be neglected altogether. It’s a known fact that cryptocurrencies are slowly changing the way the world functions and have gained popularity in a very short period of time. With the launch of platforms such as MoonX, the world is getting one step closer to the adoption of cryptocurrencies in mainstream financial transactions.
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MoonX the world’s fastest and safest digital assets exchange platform, built by world-class stock exchange and blockchain veterans, is the only exchange that lets traders trade for a deterministic (implied) price. MoonX is the future of trading digital assets in a truly decentralized ecosystem and it’s co-owned by the entire MoonX Family. While existing solutions offer to solve just one problem at a time, the MoonX Family offers a highly secure, useful and easy-to-use product based on the private blockchain.
