The Efficiencies of Decentralized Applications
Blockchain technology has led to the emergence of a new term, i.e. Decentralized Applications, which are also referred to as smart contracts. Decentralized apps are relatively new innovations which act as secure and trustworthy agreements between distributed ledgers like bitcoin or etherum and their users.
When traditional payment systems such as debit cards are linked with blockchain technology, we can expect positive outcomes like security and transparency. Other advantages include the reduction of operational costs as well as customer fee.
Additionally, another advantage is that since all contracts and transactions go through independent verification by the blockchain, this increases the efficiency of the blockchain and thus leads to efficient accounting and audit automation.
With decentralized apps, automation of payments is guaranteed in an indisputable manner. The idea behind these is the fact that these contracts skip human interference and are instead managed via mathematical consensus. This means that valid records of time-stamps and transactions will continue to exist both online and offline. Moreover, the records are safe and secure and cannot be either altered or deleted, even by the system admins. This is one of the key advantages of decentralized systems.
Users and employees, for example, are guaranteed of transaction record safety no matter what happens to the site, their data will not be lost, altered, or stolen. The records are safely stored on a distributed network servers which come with high levels of redundancy plus transaction chaining. Also, given that decentralized apps are brand new and evolving, many other features of these apps are yet to be discovered.
Major players in the market such as NYSE and NASDAQ have been trying to take advantage of blockchain trading for purposes of financial transactions and other related tasks like bets. Since blockchains have no other counterparty other than the chain itself, it gives these major players a high trust level with a safe, untamperable structure.
More so, with payments and commerce, decentralized apps are advantageous in a way that although users may pay via bitcoins, merchants will still be able to receive equivalent payments via a fiat currency. This would be possible when an autonomous app tracks down all transactions and signal a fiat currency release via an escrow account.
In addition to that, we can achieve universal payment availability for bitcoin payments if it is made through peer-to-peer exchange and the liquidity is made available by other users, not the centralized entity such as the bitcoin payment processor.
Conclusively, we can safely assume that since there are growing numbers of both entrepreneurs and freelancers around the blockchain technology, more and more business models and decentralization applications are going to crop up. But which ones among them will leave a mark that is yet to be seen.