Blockchain Adoption in Business: A Step-By-Step Guide
November 22, 2021 (Investorideas.com Newswire) How does it feel when you read the news of businesses making huge leaps after adopting blockchain technology? One cannot but feel envious! For example, if your clients are having issues with delayed payments, perhaps because of challenges related to exchange rates or administrative restraints, blockchain and cryptos can solve that. Blockchain is trustless and decentralized, which implies that clients will be able to make payments for services/products directly to you no matter their location.
Another awesome thing about blockchain and cryptos is that they help to maintain a great deal of privacy for clients. Because clients are using crypto coins, they do not have to worry about their details getting in the hands of the bank, credit card companies, or other third-party entities. Simply put, there is so much to gain by adopting blockchain in your business, but how do you go about it? Here is a step-by-step guide.
Understand How Blockchain and Cryptos Work
Well, you cannot work with something that you do not know how works. Therefore, it will be important to start by learning more about blockchain and cryptocurrencies. So, what is a blockchain? What is a cryptocurrency?
A blockchain is a decentralized public ledger designed to record and store information in a way that makes it very difficult to alter, hack or even cheat the system. As a decentralized system, it implies that the platform does not require centralized authorities to process transactions. If you take the case of a client paying for a product/ service, the transaction is confirmed by nodes spread on the network as opposed to officers in a bank office.
In every blockchain, there is a native coin that is used for paying services offered there. This means that if you want to use a blockchain such as Bitcoin, you will need the native coin for the network, which is BTC. Other common cryptocurrencies include Ethereum and Cardano.
Define the Products that can Be Bought Using the Selected Crypto
When getting started with cryptocurrencies, some organizations start slowly, which is a good idea because the world of cryptos can get really complex. So, you might want to pick one or several items that you want to allow clients to pay with cryptos. Then, the list can be expanded with time. For example, a company that deals with software development might allow its clients to subscribe with ETH, while an ecommerce firm might opt to use BTC for goods that are in high demand abroad.
Integrate Crypto Payment with the Business Receipting and Invoicing System
In most jurisdictions, let's say all of them, businesses are required to file tax returns at the end of every financial year. Therefore, it is prudent to get a way of reconciling the payments with cryptos with your balance sheet. Consider working with professionals in cryptos to help your accounting department with this reconciliation. For example, how will you capture payment with cryptos in the books of accounts?
Preferably, Convert the Cryptos to Fiat for Better Accounting
If you operate in a country where the administration is not very receptive to cryptocurrencies, this should not deter you from using blockchain technology. To make it easy for your operations, get away to immediately convert the coins into fiat currency. This way, the government will not feel threatened with a loss of revenue. Accounting and filing tax returns will also be easier.
Although many businesses tend to fear getting into cryptocurrencies, the process does not have to be complicated. So, do not be left behind. Call Hi to learn more about blockchain and cryptocurrencies as well as their application.
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