Blockchain and cryptocurrencies: similar but not the same

Although both have numerous advantages for companies, talking about blockchain is not always the same as talking about crypto. Therefore, in this article we will getting closer to these technologies to tell how blockchain can be applied in companies and what benefits it can bring to business.

Blockchain and cryptocurrencies dress up for the corporate world

In order to understand and differentiate how they work, let’s first briefly see a little about the spirit of blockchain. We have to think of this technology as a shared book between certain users, which has a unalterable, traceable and transparent record of transactions. It provides decentralization, transparency and removes third parties from the game. For this reason, it becomes strategic to keep an eye on blockchain and in the process of linking it with business.

There are many blockchain application opportunities: financial institutions, tourism agencies (for example, with the sale of transferable plane tickets), real estate (documents could be signed with this technology through smart contracts), artistic (NFTs of artistic works, tickets to events, etc.), and more. Also in the world of the metaverse, because the ways to transact and store things in it is through blockchain.

Blockchain can be applied in different cases, It is a technology that came to change the world. However, its implementation collides with the direct link between blockchain and cryptocurrencies.

The truth is that cryptocurrencies live thanks to blockchain, but the latter has applications that go beyond crypto. In short: whenever we talk about crypto, we are going to talk about blockchain. But the same is not true the other way around, not every blockchain is a crypto.

Nevertheless, cryptocurrencies also bring their own in the business world. The general picture on the perception regarding crypto in Latam is encouraging. During the webinar “Blockchain and Crypto: Summary Latam 2022” of the Argentine Chamber of Fintech, Catalina Tobar, Director of Crypto Operations in Latin America and the Caribbean (LAC) at Visa, presented a report in which, in emerging markets such as Argentina and Brazil, a third of those surveyed have a stake in crypto and 59% of users say it is important for financial institutions to offer crypto services.

Cryptocurrencies knock on the door of fintech and financial institutions with increasing force. But this face of the blockchain can also be applied in all kinds of businesses for monetary transactions.

What advantages can crypto and blockchain bring to business?

Among the benefits that blockchain and cryptocurrencies can bring to companies we find:

  • Secure and transparent transactions;
  • Decentralization (Third parties are not involved in the information transaction, only those who send and receive it, that is, no external party will be monitoring the data);
  • Greater security (hacking is difficult and also very expensive to do);
  • A better and more transparent follow-up of products and goods in the supply chain.

Each advantage will depend on the business and the improvement opportunity that blockchain technology can bring. Therefore, it is essential first work side by side to identify that business space where the blockchain can add added value.

Redbee’s Chief Engineer

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