Reference no: EM133209316

Assignment:

Blockchain Tech & Cryptocurrency relationship

• Blockchain technology is a digital ledger that provides the recordkeeping for cryptocurrency and other types of digital exchanges.
• Cryptocurrency is a digital currency that is secure by cryptography (code).
• Blockchain works together with Cryptocurrency by tracking, recording, and verifying transactions.
• Cryptocurrency is available to anyone through a relatively simple sign-up process; nearly impossible to counterfeit and double spend (digital currency that is spent twice).
• Blockchain is the bank statement and Cryptocurrency are actual funds available/spent such as by use of a Debit/Credit card.

Cryptocurrency technologies appropriate for the distributor

• Bitcoin most used cryptocurrency one of the most popular on the market; due to its fast-processing speeds.
• Litecoin consists of shorter transaction times, lower fees, and more concentrated miners. Stellar (XLM) is an open blockchain network designed to handle large transactions; extremely cost efficient and no need for middleman.
• Chain-link is a decentralized oracle network that bridges the gap between smart contracts; Blockchains alone do not have ability to connect outside contracts in a secure manner.

Blockchain and Cryptocurrencies' competitive advantage for distributor

• Better data management: the biggest competitive advantage of adopting blockchain tech is a sophisticated data management system.
• Higher security: Implementing Blockchain tech reducing cyber threats and a substantial level.
• Boosting Efficiently: businesses can boost their productivity & operating efficiency to do much more work in much less time.
• Automated payments, document verification, and data management.

Risks associated accepting cryptocurrency

• No regulation by government or industry
• No insurance
• Poor public reputation of cryptocurrency
• No records because of anonymous transactions
• Anonymity of customers
• Theft from hacking, phishing, spoofing, and social engineering

Recommendation For Stakeholders

• I recommend the stakeholders deny the use of cryptocurrency; the enterprise should use a third party by purchasing insurance (ex: FDIC banks use) for protection of the investments adding another expense for the enterprise.
• Customers can be anonymous in the world of cryptocurrency, transactions/transfers of monies cannot be traced. Extremely risky as the value of the company (cryptocurrency) can increase and decrease as value of investments change due to market fluctuations.
• Businesses are typically victims of phishing, spoofing, or social engineering.
• The competitive advantages outweigh the risk for the company when implementing cryptocurrency as part of the business model.