Cryptocurrency - particularly Bitcoin and Ethereum, appears to be driving the development in the field of financial technology making most of us curious with some confusing thoughts:
- What is it exactly?
- How does it function?
- What are the benefits and risks involved?
- Where it can be used?
- Will it be able to improve security in financial activities in the aviation industry?
In order to understand the viability of Cryptocurrency, it is important to study the Blockchain Technology - which is the basic structure that allows these virtual currencies to function digitally. It works on:
- Decentralised database
- Digital ledger
- A fixed set of records
- Smart digital contracts
What is it and how does it function?
- Cryptocurrency is a digital currency that works on a decentralised and encrypted database in the Cloud system, i.e the Blockchain Technology, which is actually owned by all its participants.
- The database records all the transactions of the virtual currency and is open to anybody who wishes to take part in the exchange anonymously.
What are the benefits & risks involved?
- The database on which the cryptocurrency works allows a high level of transparency and accuracy with respect to the transaction of the currency.
- It does not prevent the usage of the currency in illegal activities.
- Also, they are subject to a high degree of exchange rate volatility.
However, there are other multiple benefits in the application of Cryptocurrency:
Instant Payments
Other modes of cashless payments can take some days to process, whereas, cryptocurrency allows instant transfers.
Eliminating Currency Barriers
It makes international trading a smooth process by removing trade barriers and restrictions through accepting transactions in different currencies.
Reduction in Frauds
A payment made using cryptocurrency cannot be reversed. This feature is different from credit card payments, which is possible to reverse through chargebacks, a feature usually exploited by scamsters.
Lower Fees
Cryptocurrencies charge a minimal transactional fee as compared to other modes of payment and also when it is not exchanged, it doesn’t require bank charges.
Where it can be used?
- It can be used in all forms of businesses, however, it’s more beneficial while conducting international transactions.
- Industries like Aviation, Hospitality and Tourism are the ones where the application of cryptocurrencies can totally change the dynamics of the business.
Will it be able to improve how the Aviation Industry functions?
- With all the benefits and the framework on which it operates, Cryptocurrency can provide reasonable security in the exchange of transactions in the Aviation industry.
- As most payments in the aviation sector, mostly related to flight bookings are done online these days, using cryptocurrency can prove to be beneficial for both the customers as well as the airline companies.
- Therefore, depending on it’s functioning and security features, Cryptocurrency can prove to be a game-changer in the Aviation Industry.
- RayMach Technologies Pvt Ltd provides business consulting along with products and services tailored to the Aviation Industry. Thriving on the vision of optimising and automating business operations and processes, it emphasises the scope of improvement in different departments including crew management, flight management, engineering, revenue, etc through the application of Blockchain Technology and Cryptocurrency.
To know more about how you can improvise your aviation business operations along with keeping in mind the profitability aspect, visit our website or drop us a mail at support@raymach.in & follow us on Facebook, Instagram, Twitter, & LinkedIn.
