How MSPs Can Benefit from Blockchain Technology & Cryptocurrency

News of record-breaking Bitcoin growth seems to be making headlines every week. But with so much focus on the cryptocurrency itself, the platform on which it runs—blockchain technology—isn’t being fully explored, which is unfortunate since B2B organizations of all sizes stand to benefit from this amazing infrastructure.

So, what exactly is blockchain technology? Put simply, it’s an algorithm created to manage cryptocurrency, by managing electronic cash transactions. In short, it serves as an alternative to a central bank, replacing traditional banks, credit cards, and checking.

This type of format removes the intermediary, thereby reducing the time and cost involved in making a traditional electronic cash transaction.

Here are 4 ways MSPs can benefit from blockchain technology:

  1. Trust

At the core of this technology is the mission to enable two entities or individuals to make financial transactions securely. This ability builds trust.

After the disastrous Equifax data breach that leaked the personal credit information of around 143 million Americans, business and consumer customers alike became more leery of online financial transactions.

  1. Security

We know that blockchains are only as good as the code that runs them. However, this technology (save for a few glitches) has proven relatively impervious to outside attacks and hacks thus far.

One thing working in the favor of this technology is its altruistic nature. Its aim is to reduce friction and increase efficiency in the buying processes; therefore, it’s not likely to come under scrutiny by hacktivist groups like Anonymous, which have traditionally targeted less savory financial organizations in the past.

  1. Efficiency

By cutting out the intermediaries common in electronic financial exchanges, such as banks, using blockchains significantly trims transaction time and cost down.

  1. Savings

Perhaps the biggest benefit blockchain technology represents for B2B organizations, like MSPs, is the cost savings. According to a recent Forbes article, blockchain technology saves B2B companies money in 4 simple ways by:

  1. Speeding up transactions
  2. Increasing customer satisfaction
  3. Improving distribution and logistics efficiencies
  4. Reducing overhead (i.e. no or low transaction fees)

Using Blockchain Technology in Your Practice

While the technology is still evolving, many organizations are jumping onto the blockchain and cryptocurrency bandwagon by choosing to accept cryptocurrency as payment for services rendered. While this format might not make sense for all MSPs, it’s an interesting option to consider—especially if you’re aiming to attract a larger Millennial customer base.

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