How Businesses Can Utilize the Ethereum Blockchain?

How Businesses Can Utilize the Ethereum network? | The Enterprise World

Cryptocurrency has garnered a lot of media attention over the past few years, mainly thanks to its ever-changing valuation. The market has become known for being extremely volatile, which can be both an advantage and disadvantage for investors looking for returns. You can check the Ethereum price calculator and see the exchange rate of 0.01 ETH to USD for an idea of how much the price moves.

While digital assets are mostly traded for profit, they also have far more uses than just as a way of transferring value online. Many businesses have begun implementing blockchain technology, and few are as promising as the Ethereum network. In this article, you’ll discover some of the ways businesses can utilize Ethereum to gain a competitive advantage.

What is Ethereum network?

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Ethereum is a decentralized blockchain that allows for the transfer of data without any third-party or intermediaries. Like other cryptocurrencies, this blockchain is ideal for financial transactions, and people can use the ETH token as a form of currency or a digital asset. However, the network itself is capable of more than just sending and receiving money.

The Ethereum network was created after Bitcoin launched, first going live in 2015. It was created to fully explore the capabilities of blockchain, and it now functions as a fully decentralized global software platform. It supports the development and operation of a whole ecosystem of decentralized applications (dApps), as well as smart contracts.

DApps work in a similar way to the applications and programs we use every day. However, they’re not controlled by a single organization, and they’re fully transparent due to operating on the blockchain. Smart contracts allow users to create contracts that automatically execute when certain conditions are met. Together, these features provide a huge amount of versatility and promise to businesses all over the world.  

Ethereum and Business

A lot of business leaders are understandably excited about the Ethereum network and what it can offer them. The blockchain is designed to be used in a huge variety of ways, and the potential for dApps is only limited by the imagination of those who create them. Here are some of the ways that businesses can utilize Ethereum.

Simple Contracts

Contracts are incredibly important in business, although there’s no getting around the fact that a degree of trust is still required between two parties. In a globalized world, where much of modern business is now conducted online, it can be hard to know who or what can be trusted. Smart contracts make the contract process much simpler, ensuring they can be created and signed digitally and verified on the blockchain. Additionally, funds can be scheduled to be sent based on specific conditions, ensuring that the payment will be made as long as the work is completed.

Managing Data

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Data is the new oil, and proper data collection, management, and analysis are vital components of any successful business. With dApps on the Ethereum network, this data can be linked to tokens on the blockchain. As these tokens are immutable, the data can be stored properly, while the public nature of the blockchain ensures a higher level of transparency. There are already a huge number of dApps designed for data management and analysis, allowing real-time monitoring.

Rewarding Customers

Rewarding customer loyalty is a great way to improve retention, lower marketing costs, and ensure higher sales over time. Some businesses have already begun to experiment with loyalty schemes that are built on the Ethereum blockchain. Customers can earn digital tokens for completing purchases, and smart contracts can swap these for real rewards. 

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