The pioneers of blockchain technology did not lie when they said it would be a game changer. As we’ve seen since its inception, blockchain has disrupted the world’s financial systems. And it did not stop there.
As of this writing, blockchain has branched beyond the financial sector in terms of clout. Its application has extended to various industries, such as media, healthcare, and logistics. These days, when we discuss this specific technology, the subject is no longer limited to payments using blockchain and earning passive income. It’s become way bigger than that.
Blockchain’s sustained popularity is easy to understand. The technology offers a viable alternative to traditional data storage and sharing systems. It renders those processes faster, safer, and more reliable.
Since it continues to evolve, we can expect blockchain technology’s uninterrupted fine-tuning until such time that loopholes observed by naysayers, such as those related to Bitcoin economics and network security, will be no more.
With or without naysayers, blockchain is here to stay. With an increasingly globalized world, its introduction to public consciousness hits just the right timing. Globalization refers to the integration and interaction of people, governments, and economies worldwide. It’s a socio-economic model that seems tailored fit for blockchain technology.
Here are ways in which blockchain can encourage and improve globalization.
With globalization, companies have the opportunity to expand business operations beyond one’s home country. That expansion might be for the purpose of cutting costs or exploring new markets. Whatever the motivation, it’s crucial to anticipate the challenges of this business strategy to maximize the benefits they promise.
One such challenge is the actual hiring process and the consequent management of foreign employees. Thankfully, a professional employer organization (PEO) can do those things on your behalf.
Here, it’s best to partner with a service provider adept with blockchain technology. That’s because blockchain supports international hiring via smart contracts. It can also hasten communication between smart devices from different locations.
Unrestricted economic activities
There are many ways to get into cryptocurrency. You can be an active trader, buying and selling depending on market fluctuations. Alternatively, you can keep a stash of, let’s say, Bitcoin, to fund purchases that might otherwise be more complicated to pull off offline.
Either way, blockchain technology makes those financial transactions fast and easy. That’s regardless of where you are and which government you belong to.
In short, blockchain technology aligns with globalization’s goal of increased cross-border economic activities. You don’t even have to get off the couch in your New York apartment to participate in these exchanges.
Foreign money transfer
Globalization has paved the way for workers from third-world countries to find jobs that pay well in first-world countries. These workers usually send remittances to their families back home. Many third-world economies’ GDPs, such as that of the Philippines, rely on these remittances.
However, they still rely on bank-mediated foreign money transfers. That comes with exorbitant fees, and the processing can take several days.
Blockchain can change that. The use of crypto exchanges is virtually free. Moreover, the system promises fast processing. That’s an opportunity not only foreign workers can maximize.
There are many other scenarios where you might need to wire money abroad. Suppose you have a child studying overseas or have sponsored a needy family from the global south.
Supply chain transparency
Globalization makes it easy for organizations to conduct business outside their country. For example, clothing manufacturers can import and export products without complications.
However, the ease of transactions also makes it possible for counterfeits to get through customs—or for mislabeled products to cross borders without paying due taxes. These scenarios are detrimental to consumers and governments worldwide.
Here, blockchain technology can help track supply chain movement with diligence and accuracy. This level of transparency can eliminate the problems mentioned above. If products are not blockchain-approved, they’re probably problematic.
Cross-border transactions must abide by international and local trade policies. These rules may differ from country to country, complicating the whole process and challenging international trade management. That’s where blockchain comes in. The technology can ensure utmost compliance to deter global companies from getting in trouble.
Blockchain can also guide businesses in applicable tax and production laws. Since the blockchain ledger remains public, companies can zero in on organizational transparency. When the time for a compliance audit comes, they won’t be accused of hiding critical information. The process becomes easy for all stakeholders involved.
If you have a business idea you can bet your life on, there’s no time better than now to pursue that idea. That’s because opportunities abound that will help you make it work.
In particular, blockchain technology can guide you through building business partnerships. It will also allow you to expand your business into a purely cash-based enterprise. You can operate online and get paid in all sorts of cryptocurrencies.
With globalization comes the threat of terrorism. The more cross-border economic activities, the more risk there is of the global economy attracting the attention of nefarious players. That’s why increased global security is of the essence. Thanks to blockchain technology, cutting-edge security tools are at the disposal of governments.
Blockchain applications matched with drones and AI allow discreet reconnaissance sans human intervention. Real-time footage is available to help those in charge determine whether there are current threats they need to address. That is while eliminating the possibility of human collateral.
Wrapping It Up
Whether or not you’re a crypto enthusiast, paying attention to blockchain technology is in your best interest. No, it’s not just about recording or facilitating transactions involving digital assets. Blockchain technology has so much more to offer— indeed, it will increasingly factor into the ever-evolving systems of our globalized world.
If you do not want to get left behind, get behind the technology now. You could be a businessman looking for novel ways to streamline your operations or an aspiring developer searching for IT’s newest holy grail. Whatever your motivation, the key is to strike while the iron is hot.