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How business, tech, crypto and finance are interconnected

Cryptocurrency will completely transform the finance from centralized into decentralized finance.

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How business, tech, crypto and finance are interconnected

The great way to understand business is to consider it into depth sense on how it works, why it works and where it is heading. In answering these questions one can know the breadth of the whole business concept.

Business is an activity that provides goods and services to consumers in order for the provider to gain profit and by that every entrepreneur has to create, innovate and provide goods and services in order to fulfill the wants of their target customers. This activity is a win-win situation. Therefore business triggers a lot of advantages that makes it vital in our daily lives and this is why it exists. There are number of reasons why it does, this can be:

  • They contribute to the infrastructure of the country like power supplies, roads and others, through paying taxes that helps the government in the development of the country. All these contributions are among the essentials in our daily operations.
  • Business sustains employment of the people in the country thus helps to develop the skills of people also it drives innovations and causes advancement of technology where technology is an important  aspect of business growth.

Well, there are various types of business based on the number of people that are active in the running of the business. This includes sole proprietorship whereby only one individual runs the business, for the partnership two or more people share responsibilities. Some businesses go further to include investors and shareholders which consists of limited partnership where investors are present  but they are not active in the participation unlike a corporation where it is a fully- independent business with shareholders. 

A lot of things have contributed to the evolution of business where the most vital one is technology. Technology has brought more good in business, it has become a crucial and indispensable part for almost every kind of business. In fact more recently technology has been used a lot from video conferencing in conducting business meetings to the virtual sale of goods in businesses like ‘’Jumia’’ or mobile banking or use of USSD code for various banks to transfer funds. Imagine a business without a role of technology it tends to fail. Technology in business improves overall effectiveness of products, systems and services.

Technology has a wide range of effects on businesses, it can be in sending of information through electronic emails, it can be looking for employees through some job search websites like LinkedIn. The diverse effect of technology in business is breadth and it continues to advance as time goes by. All in all the biggest introduction of technology in business is cryptocurrency. The introduction of cryptocurrency in this world has brought a big opportunity for prosperity in business.

In recent research the cryptocurrency was introduced after the financial Industry crashed in 2008 where a protocol for digital cash was developed by Satoshi Nakamoto that resulted in cryptocurrency. Cryptocurrency is like an internet of value such as bitcoins and etherium, this is a kind of evolution of payment, a lot of companies have started accepting this as a mode of payment like in USA the real estate companies are working with government to put land titles on blockchain. The transaction of cryptocurrency is peer to peer without a third party like in financial services industries this makes it fast and easy. It is believed Powerful intermediaries like government kills business and through cryptocurrency a lot of businesses will grow because the transaction cost is not costly unlike in financial industries like banks which have high charges especially when the transaction are between different continents, furthermore this technology creates privacy since it does not display the profile of anyone and it helps every user to protect their privacy and privacy is a foundation of free society where business can be run efficiently with ease. Cryptocurrency will completely transform the finance from centralized into decentralized finance, it is believed centralized finance that is mostly used with financial industries causes mismanagement, fraud and corruption. 

The great question is how does decentralized finance conduct their finance system services, well they contain DAI stable coins and these are cryptocurrency that are pegged to the USD. DAI is backed up by crypto collateral that is especially used by etherium platform where ether is the currency.

In terms of borrowing money it all depends on the deposit amount of ether you have, a person who borrows a certain amount worth of DAI depending on the amount of ether in your account. So in order for ether to be released one has to pay back the DAI .Incase there is no ether to be locked as collateral one has to buy the DAI .Cryptocurrency also connects borrowers and lenders through an app called compound which is an app found in etherium platform where crypto can be lend out and earn interest on it. In more years to come a lot of advances in the finance system will have been established in cryptocurrency as a technology for it is believed it is the future of our businesses and in the world in general. 

Business requires technology like cryptocurrency that uses decentralized finance which leads to the growth and expansion of the business due to its transparency. Unlike the centralized finance limits the growth of business since most of the time it is based on the selfish acts of the intermediaries. So as the business is growing so is the changing of technology and the finance system.

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