In recent times, many companies and government institutions have shifted their focus to Bitcoin and cryptocurrency. Yes, bitcoin exchange is gaining good traction with each passing day. The growing popularity and adoption of Blockchain technology is a clear indication that it would play a key role in various global financial transactions and will serve as a public account to register all Bitcoin transactions.
What is Blockchain Technology?
Blockchain is a kind of distributed record-book or ledger that records all the transactional entries. Though it is a type of database, but different from traditional database. Blockchain lacks centralized storage and uses a peer to peer (P2P) architecture.
Individual transactions and Blocks are the two types of records that a Blockchain ledger entails. It is a collection of transactions occurring within a specific time-period. When two parties, say A and B, decide to exchange a unit of value or any other transaction value, they initiate the transaction that is processed with other pending transactions in the form of blocks. The participating computers in the network analyze the system transactions based on agreed-upon rules in order to verify the validity of transactions.
How Blockchain Technology Influences Bitcoin/Financial Transactions?
Blockchain technology helps to avoid crimes like tax frauds, money laundering, corporate/banking frauds etc. It regulates the market by protecting the customer identity and data. Cryptocurrency transactions make consumer data so secure during bitcoin transactions that it is difficult to trace. However, this creates a challenging situation for companies and policymakers, as it leads to difficulties in income tax imposition on virtual currency giving policymakers a tough time.
Blockchain was at first publically introduced in reference to Bitcoin digital currency. A type of database used to store temporary and permanent transaction data records. There is no centralized hub or server acting as a control center. This is the most fundamental feature of blockchain. The data provided to distributed ledger technology-enabled blockchain is encrypted through a digital signature. This digital signature cannot be forged and permits access only to authentic users by verifying their identity.
How Blockchain will Boost CRM Performance?
There is a lot of hype around Blockchain because of its potential to carry out critical digital transactions. Business experts predict Blockchain technology to enhance CRM performance. Yes, it can benefit CRM by denying the access to track data. At present, CRM users all over the globe face the issue of incorrect or duplicate customer data. As said by Victor Wong, the CEO & founder, BlockApps, “Blockchain could allow a customer to own one block that presents a unified and accurate picture of his or her personal information, transaction histories and other data.” He foresees blockchain benefitting both the company and customers. Blockchain forbids the duplicate or risky data from hampering the database. Eradicating inaccurate data will speed-up CRM processes and improve customer understanding.
Blockchain is still in its early stages and it could take anywhere say 10-year toil before it is accepted and adopted worldwide before it transforms CRM. However, making Bitcoin a legal currency is unclear. A big reason to worry is the Bitcoin’s flawed anonymity, which is also its USP. Since Blockchain is not a centralized network, it enables bitcoin users to carry out financial transactions without any financial body acting as an intermediary to supervise the currency. Apparent benefits of Blockchain technology will only be clear when one starts using it.
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