Hello dear friends , hope you are all doing well. Today i choose to write about homework task set by Cryptoacademy which is about Blockchain in Bussiness and finance .

Explain in your own words, how the blockchain can be used in business and finance.

Among the diverse use-cases of blockchain, finance especially decentralized finance is a prototype sector where blockchain roots can be traced. The versatility of the technology soon influenced other fields of day-to-day utility too. The technology that lies at the heart of the blockchain and confers the features to the blockchain is known as cryptography.

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Among the various intrinsic features of blockchain, I think security is the parent feature through which blockchain has got recognition. The security of the blockchain is because of the encryption of data through cryptographic hashes within the blocks that are linked together. Incorporation of blockchain within the business and finance would revolutionize these sectors through the following means:

SECURITY

The inclusion of blockchain in finance and business would make these sectors highly secure. Data stored on the blockchains is cryptographically secured in the form of blocks. Blocks are linked to each other through cryptographic hashes unique to each block. Before storage of data on the the blockchain, data is distributed across the public ledger for independent verification and once the data is verified and stored then that data is noneditable. The blocks are linked to each other until the genesis block is reached. Such a complex system of storage makes it highly difficult to forge data by any third party.

TRANSPARENCY

Blockchain is a decentralised distributed ledger technology where stored data is publicly accessible and is mom-editable after storage. These features make it a transparent system.

ACCESSIBILITY

Blockchain technology being a decentralised technology is easily accessible for everyone and can be accessed anywhere. All that is needed by anyone is access to internet.

QUALITY SERVICE

Any technology that would incorporate the above-mentioned features into practical utility would enhance the quality of service delivery. The hardware devices like computers that maintain the record of transactions are known as nodes. A blockchain is a collection of scores of nodes working together to ensure the integrity of the network. Blockchain doesn't face server-down issues as all nodes cannot be at fault at a particular time. So it ensures 24x7 service.

Indpednent system

Being a decentralized system, blockchain is not under the control of any third party. So with the inclusion of blockchain, intermediaries would be eliminated and an independent system would be established.

Accountability

Blockchain has an inbuilt auditable system because transactions are not recorded unless verified by independent nodes and are publicly accessible. Moreover, the non-admissibility of recorded transactions further adds to the auitability and therefore accountability of the sectors in which blockchain is incorporated.

Explain in your own words the applications of blockchain in business and finance.

Blockchain has no longer remained a technology linked to finance only. This feature-rich technology has influenced diverse fields of day-to-day utility. This part of the task demand applications of blockchain in business and finance So let's make thee sectors centre of attention and make our discussion revolve around them. In business and finance blockchain would offer the following advantages :

• Perfect Record Keeping is vital for every business, especially the finance or revenue sector. Blockchain would ensures transparent and permanent record Keeping technology in these sectors. Moreover, the stored records would be easily available for everyone to access. Finance or revenue records once stored cannot be tempered or forged. So blockchain would assecure rapid and transparent record-keeping system.

• Competitive administration Each node operator in a blockchain can be assigned the task of administrator at the lower level and distributed ledger technology allows each node operator to access all other nodes transparently. Such a system would ensure competitive administration besides being transparent.

• Supply Chain standardisation: integrity of the supply chain in any business is essential for the success of the business. Blockchain would ensure proper tracking and timely remedial intervention if needed. It would serve as a system to notify administrators beforehand about the quantity and quality of the goods and supplies and would therefore ensure quality service.

• Cost-effective system: Blockchainn would offer a cost-effective system in business and finance by ensuring low transaction cost, lesser manpower, quality service, customer satisfaction and profitable business.

What is the goal of blockchain applications in finance and business and how does cryptocurrency affect business?

Technology upgradation for the approximation of an Ideal and conducive environment is a routine practice in traditional Business setups The goal of incorporation of blockchain Technology in business should sync with the concept of approximation of perfection.

To be specific, blockchain technology is aimed at bringing transparency in business and finance besides being a secure system. It would bring Accountability to the system besides being accessible to the common masses. The quality of service delivery in every sector would be far better than in traditional systems. Although the technology in itself is costly the overall features would make it cost-effective technology.

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Cryptocurrencies have a positive impact on Bussiness because of the following reasons :

• Cryptocurrencies would boost Business because they serve as a global medium of exchange. So businesses would be propelled to the global domain.

• Low transaction fees especially on a large scale and global transactions would be advantageous to boost business

• As cryptocurrency transactions are immune to temporal (time) and spatial ( place ) limitations, transactions can be performed anytime and anywhere. So it would boost business as we would have a 24x7 system with us.

• Non-fungkble tokens are themselves a new horizon of business for skilled workers who create unique content in the form of audio edits, photographs and other artworks etc.

• Metaverse and utility tokens are worth mentioning innovations of cryosphere that represent a form of business. Let's take an example of decenterland and gaming utility tokens.

• Staking cryptocurrencies at interest rates far better than banks of tratraditional finance can be advantageous for people who keep their funds as fixed deposits in banks.

What is the future of cryptocurrency in the business and finance sector? Also, give some examples of blockchain applications that are being used in business and finance.

The future of cryptocurrencies in business and finance is bright because sooner or later people have to adopt them. Some negative impacts of cryptocurrencies have overshadowed the positive impacts of cryptocurrencies.

We have seen some optimisatic features of cryptocurrencies in bussiness and finance would offer some wonderful advantages over traditional fiat-based currencies. These advantages have made governments take steps like the launch of central Bank digital currencies that would retain advantages and are regulated by governments. Although CBDCs have too faced some limitations in adoption, the point to emphasise here is that the magic of cryptocurrencies is unleashing gradually and would be widespread in future.

Blockchain has found diverse use cases in business and finance. Let's mention some specific applications of blockchain in these sectors :

• Staking and lending are made possible through blockchain via dApps in Defi. Staking offers better interest rates than the traditional financial system People can also lend their funds at better interest rates than that seen in the traditional financial systems. Such features are explored in Defi through dApps like JustLend, SUN.io, Jistswap etc.

• Crypto loans: Cryptocurrencies are being offered as loans in Defi through dApps at better interest rates than traditional finance for both parties. Examples are Nexo, SALT crypto loans, CoinLoan etc.

• Games that are being played on blockchain incentivise users and thereby offer financial support for them. Let's take an examole of cryptokitties etc.

• NfT tokens are a classic means of incentivising skilled workers or professionals for their hard work. For example Nifty Gateway is a well known marketplace for NFTs.

• Metaverse is a fascinating concept of blockchain which aims to enable people to perform every activity in the digital world through avatars. Metaverse has a huge potential in Bussiness as can be understood by fame of Decenterland.

Conclusion

Blockchain is one of the remarkable technology of 20th century. To begin with its launch through DeFi, blockchain rapidly gained popularity and entered other fields. The versatility of the technology is due to some intrinsic features like security, transparency, accountability and accessibility etc.