To keep up with this global revolution, traditional centralized models for payment processing, clearing, and settlement are no longer sufficient.
The platform ethereum-trader.io charges zero commissions on profitable and non-profitable trades for a costless bitcoin trading venture visit. Ethereum is a blockchain-based technology, most well known as the foundation of bitcoin. It can be used as an open-source platform enabling developers to create decentralized applications.
It means that transactions on Ethereum are final, immutable and deterministically executed by the network without outside interference or tampering. In addition, Ethereum also offers a cryptocurrency token called ether that people can use for payments or rewards in its network. Moreover, the platform is customizable, meaning businesses can build their blockchain or sidechain and tailor it to meet specific requirements. Finally, flexibility is key to the Ethereum platform, as businesses can design their smart contracts and applications on top of the protocol.
Ethereum enables businesses and individuals to utilize smart contracts to build complex supply chain relationships. Supply chains are no longer one-to-one relationships – they encompass several parties along a continuum that can include manufacturers, distributors, suppliers, retailers and consumers. Let’s discuss the use case of Ethereum in international transactions.
1. Supply chain setup
Before introducing smart contracts to supply chains, it’s first necessary to understand the supply chain structure of a business. A business typically has one location but may have multiple locations in different areas and provinces. For example, a company that sells products in retail stores across Canada may also have factories in Mexico, the Caribbean and China (for those products not sold on a national scale).
Such companies must ensure all operations are conducted within their respective legal jurisdictions adhering to local regulations governing working hours, taxes and safety compliance. Some companies may require licenses for specific operations, such as purchasing food products from suppliers or importing ingredients for manufacturing. In addition, automotive and luxury goods industries are prone to trade disputes, price wars, and other supply chain issues.
Smart contracts can streamline moving things from point A to point B while ensuring that all information is transparently reported without third parties intervening. It benefits customers in many ways, including faster delivery, lower prices and improved customer service through timely receipt of orders.
Suppliers trust blockchain technology due to its transparency and immutability. They see the technology as a way of increasing the accuracy of supply chain data, alleviating risk for their suppliers, reducing errors and fraud and reducing costs involved with transacting with third-party processes.
Smart contracts are a great way of streamlining processes in supply chain management by automating the delivery of products, managing inventory, and paying suppliers on a timely basis. In addition, smart contracts enable businesses to streamline operations by replacing manual processes that rely on third-party entities with automatable scripts.
2. Fast and Easy transactions with either:
You can set up automatic transactions triggered by an action using a combination of intelligent con
tracts and ether. You can also use Ethereum as an easy way to provide rewards on a corporate loyalty program or offer discounts when buying something online to eliminate credit card fraud and identity theft.
3. Ethereum transactions do not incur banking fees:
Many banks charge hefty fees to complete an international wire transfer. For example, if you send $5000 from Canada to the U.S., your bank could charge upwards of $150 for the transaction. Ethereum eliminates all banking fees by using ether as a currency that can be used to send money instantly and at a fraction of the cost banks charge. In addition, no third parties are required, like a bank or credit card company, so users will save a lot of money on every transaction they make over Ethereum.
4. Better use of initial coin offering:
Initial coin offerings (ICOs) are a new way businesses raise money. ICOs involve the release of a new cryptocurrency and usually take place before that cryptocurrency is available for use by the public. The idea is to raise capital for a project at an early stage and provide incentives for people to buy into the currency.
The whole process of issuing an ICO can be automated using smart contracts with Ethereum, so businesses will not have to worry about manually processing payments. Furthermore, once undertaking an ICO, any funds raised from investors can be stored by people in Ether tokens rather than traditional currencies like USD or CAD, which are subject to fluctuations in value due to inflation.
Due to the platform’s flexibility, many companies have launched their own ICOs on top of Ethereum. If you want to build a blockchain-based application, you don’t necessarily have to start from scratch. You can use one of many templates currently available in the Ethereum ecosystem and modify it until it is customized for your business needs. It can save a lot of time and money for any business that wishes to implement blockchain technology into its operations.
Read more:
How are international transactions sophisticated using Ethereum?