Emerging Trends in ICT and Business
Executive Summary3
Introduction:3
Background..3
How bitcoin work4
Results and Findings:4
Benefits and risks
Discussion:5
Implementation .5
Conclusion.6
Recommendations for Namshi6
References7
Executive Summary
This analysis aims to demonstrate the effectiveness of technology in business functions. For instance, the adoption of the digital currency is one of the new trends in the contemporary payment plans, which a popular company should enhance. Due to transitions in transactions, the society moves from the cash to a cashless society (Akhgar, and Arabnia, 2013). As a case study in this analysis, Namshi is better placed in adopting this payment plan. Therefore, this work gives comprehensive finding, then end up by giving the recommendations about the effectiveness of this application in the company.
Introduction
In the new world of technology, digital currencies or virtual money is exchanged for traditional one. They are independent of traditional banks and they use cryptography for security. This new financial transaction system is acceptable and it is growing fast in online community. Bitcoin is a form of digital crypto-currency model that has been used as a payment method. Furthermore, Bitcoin payments are relevant in the modern community as they effectively easier and convenient to make payment of physical products and services through computer or smartphone. According to Papp, (2015). "Bitcoin is a decentralized, partially anonymous digital Internet currency that is backed by peer-to-peer networking and cryptography to maintain its integrity". That leads to the most important characteristic of Bitcoins, there is no central server controls its network, the users control their money without bank permissions. Moreover, it based on mathematics. To produce it, users use software programs, which follow a mathematical formula, and the software, is an open source. This report is provided for the management team at Namshi, the largest online store in the Middle East. The purpose of this report was to help Namshi to decide on Bitcoin as a new technology, help them for better understanding of Bitcoin, detailing its benefits and risks, and then addressing the implementations.
How Bitcoin Works
Similar to e-mail, once the user install a bitcoin wallet, bitcoin dresses will be generated and the user can create more. The transactions can be made from address to another, except in bitcoin. In fact, the address can only be used once. In details, there is a shared public ledger called ‘blockchain’, which include every transaction between Bitcoin wallets through a process called mining (Antonopoulos, 2014). The transaction requires a signature based on maths. Every account number has a private key to approve that the sender is the real owner of the account. To create a signature, a private key and a text from a transaction are fit into special cryptographic function, another function make people check the signature and make sure that the sender is the real owner of the account. The signature is unique in each transaction. Check the diagrams below:
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Bitcoin is a software program that every user can install in his or her personal computer or smart phone (Anderson, Wu, Cho, and Schroeder, 2015). This is possible even if the user does not understand the technical details, meaning the processes are not complex. The moment the user acquires the software, the installation becomes manageable, since the progression prides easy steps that the user can follow during the installation process. Moreover, it is true from the researches that payments made using cash has been marred with numerous challenges. For example, there are thugs and burglars that identify when an individual possess the cash then attacks him or her (Corcoran and Andrae 2013). On the other hand, the charges that are attached on the manual traditional transactions are higher compared to the online system of payment. In retrospect, the system is specific to an individual unique key that safeguards the user security, unless shared.
Discussion
The use of technology in business transactions has been important in various reasons. First, it expedites the transaction process, since all the dealings are automated. It is more efficient than the traditional forms where everything had to go through the long process of paper exchange and manual data presentation. Secondly, it is safer and effective due to its nature (Janita, and Chong, 2013).
Risks and Benefits
The transacting parties are able to exchange and share the data whenever need arises. It lives longer for future reference, because everything exists in the system, which is hosted online. Finally, it is a time saver, since every employee gets the payment information without necessarily having to travel to the banks to confirm. In fact, many employees have been experiencing the challenge with the traditional system, where one has to visit the bank to know whether the money is in the account or not. Moreover, the payee can transact the money directly to other prospective bill payments without having to withdraw the money (Gandhi, 2014). Being that Namshi is celebrated as the largest online store in the Middle East, it is better that it adopts the system to effect its payment plans. There is vehement need for this transition in any popular corporation. Therefore, the step by Namshi to incorporate the system in its services will pave way for other companies to adopt the same. However, it can be a slow way of transaction if the people using it do not understand how it should be applied.
Implementation
There should be a good and sustainable system that supports its effectiveness. In addition, the staff must understand deeply the new system before its adoption. Doing this will make it easy for its adoption. Furthermore, the company must train some staff that maintain and manage the system. Alongside this plan, the security must remain the highest concern during the implementation process.
Conclusion
Technology has taken the central toll in the global business transactions and dealings. In fact, many businesses are today taking place online. Advertisements and product promotions are taking place online. On the other hand, many people today exchange goods and services without having to establish physical encounter. In the same manner, there is a vehement need for the payment plans to reflect the same effect. Therefore, Namshi being one of the leading business platforms, it should adopt bit coin as the real payment plan in its operations. Due to the benefits elucidated in this work, it becomes real that it would realise a robust change in the client-employer relations in terms of payment transactions. Since there is a shared public ledger called ‘block chain’, where every transaction between Bit coin wallets through a process called mining, it becomes a more secure mode of receiving payments. Therefore, it is the most favourable and pleasant payment plan that the society should encourage.
Recommendations
Reference List
Akhgar, B. and Arabnia, H.R. eds., 2013. Emerging trends in ICT security. Newnes.
Anderson, D., Wu, R., Cho, J.S. and Schroeder, K., 2015. The Changing Role of ICT in
Government: Lessons Learned. In E-Government Strategy, ICT and Innovation for Citizen Engagement (pp. 29-43). Springer New York.
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Janita, I. and Chong, W.K., 2013. Barriers of b2b e-business adoption in Indonesian SMEs: A
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Jeremy Papp. (2015). A Medium of Exchange for an Internet Age: How to Regulate Bitcoin
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