Discovering Ethereum: What Can It Do For Your Business?

Discovering Ethereum: What It Can Do For Your Business?

Founded by Vitalik Buterin, Ethereum is the second-largest cryptocurrency technology in the world. Although relatively new, having emerged in the year 2015, Ethereum is the primary competitor of bitcoin and has a significant amount of crowdfunded money.

Ethereum Offers More Than You Think

Although it is young compared to bitcoin, Ethereum has a lot to offer your business. With its constantly evolving system, so too will the applications that many businesses can implement.

1. Crowdfund Ventures

Lack of cash to scale is the main cause of failure for small businesses. Although a business seems to be doing well, if it cannot scale, then it cannot grow. And banks don’t like loaning to small businesses.

However thanks to ETH, small businesses can now raise funds via blockchain investors. And the smart contracts ensure that the investors will receive their share when they invest.

2. Instant Contracts

Probably the biggest stress in the business world is dealing with the legalities. And forms and contracts be printed, providers and clients will need to sign, sealed, scanned and emailed or delivered back.

With Ethereum, however, a business can now sign contracts in an instant with their partners and client right on their smartphone or computer.

3. Employee Management

More practical use of ETH in businesses is managing employees. With Ethereum, every employee can be issued an ID via ether tokens. Their hours of works will be automatically logged and the smart contracts can issue the payments to the employees automatically.

With this, you will no longer need a bookkeeper to prepare the payroll and distributing money to your staff. You can simply program a smart contract to release the funds to your employees based on the work hours and setting variables as deductions.

4. Customer Loyalty

Do you remember those loyalty cards from other stores collecting points for every purchase you make?

Well, small businesses do not have the luxury to offer that. Not only are these expensive to implement, but they can be quite complicated to manage. However, with ETH, it is all done, automatically.

By assigning an ID to every customer, you can automatically track every interaction they have with your business. And for every purchase they make, customers are rewarded with smart contracts.

For every purchasing transaction they make, the smart contract can automatically email them a  gift card or apply a discount for their next purchase or just about any unique ideas you might have.

The Problem With Ethereum

Without a doubt, Ethereum offers a lot of benefits. The only problem is that due to its popularity, it has become quite congested over the years. With many developers choosing to work with Ethereum’s ability to enhance whatever they are working on and the huge amount of new coins and blockchains attached to it, the high levels of congestion become a nuisance.

This congestion has led to increased fees and the slow traffic that prevents the tech from being scalable. Co-founder Vitalik Buterin hopes that the integration of a new blockchain called Ethereum 2.0 can somehow reduce this problem and bringing ETH back to its former glory.