Cryptocurrencies are changing how consumers pay for goods and services. All over the world, companies are beginning to accept digital currencies in place of government-backed tender.
Even traditional banking systems are getting into the game and piloting their own digital coins. In February, JPMorgan launched a digital token backed by U.S. dollars. Bank of America has filed over 50 blockchain- or cryptocurrency-related patents since 2014.
What’s the appeal? Built on distributed ledger technology, cryptocurrencies come with low or zero transaction costs, fast cross-border transfers and decentralized regulation. Although digital coins won’t eliminate the need for regulated currencies, they are expected to continue to grow, both in utilization and popularity.
In a future where crypto and fiat currencies coexist, businesses (to include billing platform providers such as my own company) will need to adapt their billing capabilities to support multiple payment types and pricing for new currencies simultaneously. You need financial tools that can evolve with global pricing trends and adapt rapidly in today’s ever-changing payment landscape.
The first step in this direction is understanding the innovation driving cryptocurrency growth: blockchain technology.
The Force Behind Crypto: Blockchain Technology
The infrastructure underneath cryptocurrencies is blockchain technology, which has the potential to unlock efficiencies and cost savings in a variety of industries.
The technology has several advantages. First, a blockchain is immutable. Once transactions are recorded, they can’t be changed. In addition, “nodes” within a blockchain collaborate to verify the accuracy and legitimacy of what is written to the digital ledger. This enables decentralized self-regulation and creates reliable audit trails. No intermediaries are necessary to hold data in a central location because all information is shared among participating entities. And because…