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How to Use Bitcoin and Blockchain For Your Business

bitcoin

Imagine a world where you can buy and sell goods and services with the greatest of trust, incur far fewer processing costs, and process in minutes transactions that used to take days or weeks.

Imagine a world where you can create contracts and an immutable reference point that does not depend on trusting other people, but rather is based on rock-solid mathematics.

Imagine a world where you can do business with billions who previously were not able to purchase from you, but can now with the press of a few keys on their smartphone.

You don’t have to just imagine it. Such technology exists now, and it is powered by a database-like technology called blockchain. Blockchain is often associated with bitcoin, a digital currency, but it is a lot more than that.

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A blockchain is a distributed public ledger that tracks what has happened in all transactions in a particular area. As the blocks of transactions are processed, the results are added to an ever-growing list, which is trackable and immutable.

This creates trust, the most basic element needed in any business transaction. The benefits of this include a verifiable way to track ownership of digital currencies without having to trust some central command. This helps to cut costs. As an added benefit it also reduces, and in most cases, eliminates the chance of fraudulent activity.

One of the most popular uses is with digital currencies, of which bitcoin is the most popular.

Digital currency

Digital currencies have been increasing in popularity and price since the inception of bitcoin in 2009, when the price was less than a penny. As I write this, the world is experiencing dynamic growth and record highs in digital currencies like bitcoin, Dash, Ethereum, and others.

According to coindesk.com, the price of bitcoin on December 31, 2016 was $908.17. As I write in early May, 2017, the price is $1,756.46. Of course that can, and will, change. It has a history of fluctuating a lot, and that probably will continue. However, it is something that smart business leaders cannot ignore.

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