As a small business owner, you must be aware of all the newest developments on the technological side of the business, some of which might be applicable to what you are trying to accomplish for your customers.
Cryptocurrency is certainly a development that has applications for those who own small businesses. Many people think in terms of Bitcoin and the ability to make and receive digital payments that are quick and cheap, two qualities that are always good for the small business owner to cultivate. But you might not know as much about the cryptocurrency named Ethereum and the innovation known as the smart contract, which is one of its many features.
Of all the possibilities available to business owners via cryptocurrency, the smart contract might be the biggest game-changer of them all. Some cryptocurrencies offer a lot of flash but not much substance, but the smart contract of Ethereum is nothing if not substantial. It’s one of the reasons why the coins have done so well as an investment property, something you can enjoy with the help of trading robots such as Crypto CFD Trader. The smart contract is certainly something that business owners should keep on their radar always, possibly even implementing it. Here is how it works and what it means for businesses like yours.
- The Old Way
Normally, contracts require some third party to act as an adjudicator to make certain that both parties are satisfied. That process can require both time and money before it actually comes to pass. The third party, such as a law firm, might even be the one to draw up the documents. All of this takes precious time, and it usually requires you to pay a substantial amount to the third party to get them to participate and ratify the contract or arbitrate it if there is a dispute.
- The New Way
A smart contract, which is a defining part of the Ethereum network, is something that is ratified by the network’s various nodes and requires no extra payment. If the terms of the contract are met, the contract’s stipulations are automatically put into play. This removes the possibility of one party trying to renege. It also ensures that payments will be made immediately without any prolonged waiting time.
- The Applications
As a business owner, you can imagine the ways in which this can be helpful. In terms of hiring freelancers, you can set up smart contracts to pay these individuals as soon as they deliver their work. Or, if you are the freelancer, you can be the one getting paid quickly at the completion of the job. And there isn’t any way that the other party in the contract can avoid payment if that is their end of the bargain, because the smart contract automatically withdraws it at the proper time.
This kind of process gives a small business owner a level of certainty about a business relationship that wouldn’t otherwise be possible. It’s why you should be enabling smart contracts wherever possible.