The next steps for cryptocurrency, ICOs and blockchain

Cryptocurrency has had a big impact on the world of finance and more and more opportunities are now becoming available for the format to spread to new areas.

Let’s take a look at new and future uses for cryptocurrency and blockchain technology and how they can become more widely used by businesses and consumers in new applications.

Loyalty schemes

Loyal customers make purchases up to 90% more regularly than casual customers, however this can often be more difficult for small and independent retailers to implement.

By using cryptocurrency instead of traditional methods, customers receive something they actually want – the ability to earn loyalty from multiple retailers and the choice of where to spend, thereby creating a shared loyalty experience on the High Street.

Data sharing

Most enterprise data goes unused, but blockchain can act as an intermediary for businesses to store and move this data. This can help improve a host of industries by reassigning unused business-vital technology, or by accessing resources that are in high demand, in order to make IT services run more smoothly.

Immutable data backup

Today’s cloud storage systems are designed to be a go-to source for data safekeeping, but aren’t immune to hackers, or even infrastructure problems. Blockchain can be used as a backup source for cloud datacentres to resolve this problem, meaning your data is secured in the cloud by an extra level of security.

Equity trading

Blockchain has the ability to rival or replace current standard equity trading platforms for stock trading. Blockchain networks validate and settle transactions very quickly, so could remove the lengthy wait time investors’ are likely to see when selling stocks and seeking access to their funds for the purpose of reinvestment or withdrawal. This could also make equity trading more accessible for newcomers, and new trading platforms could create new funding markets for businesses.

Low-cost money transfers

One of cryptocurrency’s best-known uses is to send and receive payments at a low cost and at a high speed. Large money transfers go through a financial intermediary which makes fees much, much higher and take much longer, especially if it’s an international transaction. It’s likely that we will soon see greater pickup of money transfers, especially in business-to-business applications, as well as in e-commerce settings.

Make private transactions

Privacy-centric digital currencies allow users to make anonymous financial transactions, meaning individuals can make money transfers without having to explain to a bank why they are sending a large sum of money, what the sources of the funds are and who they are sending it to. This means the process can be sped up.

Send and pay non-cash remittances

Cryptocurrencies can be used for non-cash remittances, such as mobile data top-ups or utility bill payments. This is a useful way for businesses to keep certain finances separate from other expenses, and for others to make payments on behalf of another individual.

Supply chain monitoring

Businesses can use blockchain-based technologies to monitor supply chains and pinpoint inefficiencies more quickly, as well as locate items in real time, by removing the need for a paper trail.

Blockchain can also allow businesses to view how products performed from a quality-control perspective when being transported to the factory or warehouse to the retailer. This provides greater transparency over the supply chain process in order to find and correct any issues that may have arisen.

By Raj Agrawal, Founder and CEO, Dewber