Besides being the most disruptive technology of the century, Blockchain is also a value proposition where a community-based approach yields transparency and a trustless distribution system. However, technicality and lack of real-world use cases had slowed the early adoption of this technology.
But, with the recent upsurge of BTC prices and the public’s awareness of Blockchain technology, much of that is changing very quickly. One of the most exciting applications that have accelerated crypto trading is developing a crypto arbitrage bot.
Automated trading bots, sometimes called algorithmic trading software, have been around for over 30 years now—part of what was then the concept of pattern-based trading. The rise of cutting-edge technologies like artificial intelligence and arbitrage opportunities in cryptocurrency has given rise to explosive growth in automated technologies such as crypto arbitrage bots.
The critical factor for any automated pattern-based trading mechanism is strategy. These automated bots abide by a set of rules designed to conduct trades automatically in a split of a second without any interference from human beings, thus allowing trading round the clock.
Human traders create a strategy with the algorithmic method to achieve profits consistently, thus freeing themselves from executing identical processes over and over. Utilizing a cryptocurrency arbitrage bot allows you to make hundreds, or even thousands, well-informed data-backed decisions in the tiniest space of time when a human can make one or two of those.
Another considerable advantage of this is that such decisions are purely algorithm-based trading decisions, and there are no emotions involved to disrupt them. The crypto bots just work on a pre-set trading pattern and strategies as programmed, time and time again.
Another impressive innovation made in the crypto and especially Decentralized Finance part of crypto markets is the yield farming operations. Yield farming crypto is basically looking for the best yield being paid by a particular platform seeking liquidity.
The concept is a relatively simple one. Decentralized exchanges and lending protocols on DeFi require liquidity. Unlike traditional financial institutions, in crypto, that money is lent mainly to the platform by strangers. Most decentralized banking applications devise clever ways to attract crypto HODLers with idle crypto assets.
Most of these platforms are highly concerned with liquidity. Meaning, how much money these platforms have locked in their smart contracts? Instead of borrowing from VCs or debt investors to make their platforms liquid, you borrow from their users.
And finally, the application of Blockchain by a humongous global brand ensures that Blockchain will continue to have more and more applications in everyday businesses.
During the recent pandemic, retail giant Walmart began using Blockchain to ensure food safety and efficiency in its supply chain. With higher insistence by the consumers on knowing where their food is coming from, the food giant, Walmart supply chain problems demanded more transparency and trust. With its products moving from farmer to consumer while going through processors, distributors, and retailers, Walmart decided to utilize the auditability and trustless features of Blockchain to ensure transparency.
Learning by analyzing food safety cases, it became clear that it required immediate traceability and transparency, unlike most traditional food chains. With today’s highly processed food products, knowing which supplier made a particular food item isn’t enough.
Today’s marketplace still cannot trace it back to secondary and tertiary suppliers that are linked to the farm. In the centralized model, the transfer of data within the supply chain inevitably causes complexity and delays.
Walmart began its blockchain adoption with a test pilot project in China.
Tracking the pork pilot project started with recording the entire production process, using RFID, cameras, and other IoT devices at the slaughterhouse. While using advanced tracking for pork that was to be transported, it has extensively utilized GPS systems together with temperature and humidity sensors. Such close monitoring ensured that meat arrived at the distribution centers in a safe condition. In addition, Walmart empowered the purchasing managers by tracking all the necessary product information remotely.
As we have seen above, the mainstream adoption of Blockchain and a decentralized, trustless, and auditable system brings more utility, transparency, and trust in any system that adopts it especially when utilizing crypto staking. In each case we discussed here, Blockchain not only helped alleviate higher costs and made processes simple but provided with an unparalleled level of security.
