Young Platform Blog

The applications of blockchain in business range from traceability to cyber security. Find out how to integrate it into your business

Companies today are increasingly data-driven, data that they collect, process and use to improve their products or operations. This is combined with the continuing trend of technology towards automation. The exemplary fruit of these two currents is artificial intelligence: think of how much data ChatGPT’s software alone requires.

AI, however, is not the answer to everything. So here’s why blockchain can facilitate both the management of data and its automation.

The problem of trust in data

Today we have a large surplus of data: data that is more or less useful, more or less truthful, more or less sensitive or accessible. Managing this information correctly from the source is crucial to protect both people and organisations.

The consequences can vary in scope: from fake news that makes us look bad, to a serious breach of privacy that leads to financial losses.

After all, the data we believe in and how we read it create our reality. When data is falsified for whatever reason, communication problems can arise. What happens if a service communicates wrong information to its customer, or if the error occurs between two partner companies? Trust is broken, the customer or partner is lost. 

Not only that, the consequences can be even more serious: imagine what a mistake in a medical record or in the address of a parcel means.

But there are even more common examples that demonstrate the importance of trust in data. Would you buy a designer dress, knowing that it was produced through exploitation? Or organic food, knowing that it was not grown according to these parameters?

Unfortunately, there are many cases where producers ‘get away with it’, due to a lack of visibility of a product’s history, fragmented in so many places and intermediaries.

We have now surrendered to the normalcy that in all relationships, what cannot be controlled, must be left to blind trust. But it does not have to be that way.

Technology can help us in this too, and blockchain is especially perfect for replacing that margin of  blind trust with justified trust. Let’s look at the various application cases.

Traceability and verifiability

Imagine the blockchain as a register of immutable data. No data can be changed: there is only one version of the facts, the original one.

In addition, it is not controlled by a single authority, but can be compiled and managed with the consent of all those involved in the system. This makes information impartial and shared.

This is music to the ears of those sectors that fight counterfeiting every day. Especially when it comes to luxury goods, the value often lies in the origin. If the origin is certified, the customer will have complete confidence in the value of the good and will be incentivised to buy it.

Not only that: counterfeiting represents the biggest challenge globally for legal documents, financial documents and goods such as pharmaceuticals or foodstuffs. It costs companies more than 7 per cent of their annual expenditure, amounting to almost $4 trillion each year on a global scale.

For fashion brands, counterfeiting represents illicit competition resulting in a loss of sales of more than $50 billion every year. So Louis Vuitton, Prada and Cartier collaborated to create Aura, a blockchain system that allows the history of luxury products to be tracked and reliably authenticated. Microsoft and ConsenSys, a company specialising in blockchain technology, were involved in developing the technological infrastructure.

The traceability and immutability of data is also crucial in the supply chain.

When integrated, blockchain can offer real-time visibility into the entire production and distribution process. This means that companies can monitor every step a product undergoes, improving overall efficiency and creating added value. 

This is the case for Nestlé, which adopted blockchain technology to ensure the security of its supply chain, particularly focusing on ingredients used in the production of baby food such as puree and pouches produced by Gerber. This decision was influenced by events such as the salmonella contamination scare involving large quantities of baby milk powder in France in early 2018, as well as the E. coli outbreak affecting lettuce in the United States. In this context, ensuring food traceability has become paramount.

Security and privacy

The blockchain uses advanced cryptographic techniques to protect transactions and data. Moreover, since they are distributed networks, they do not have a vulnerable central point. This makes them resistant to intrusion: it is very difficult for anyone to try to hack or breach a blockchain network, as it would require a huge amount of resources and would be extremely complex. This feature greatly improves data security and minimises the risk of unauthorised access or data breaches. 

In 2023, Statista’s analyses revealed that cybersecurity spending exceeded $71 billion. The following year, this figure increased by 11% compared to the previous year, reaching an impact of over $79 billion on businesses. Projections suggest that, although 2023 marked the most expensive period in the last decade for cybersecurity, 2024 is expected to surpass it significantly.

Engineers at the Defense Advanced Research Projects Agency (DARPA), the technology development wing of the US military, have developed a blockchain-based encrypted messaging system that allows US military personnel to exchange vital information in real time, anywhere in the world, without fear of interception by foreign hackers.

Staying in the context of data security, thanks to blockchain and the use of cryptography, the level of data privacy is highly programmable. One can choose a blockchain that only authorised persons have access to, with the aim of protecting sensitive data, or one can verify personal data without learning about it.

In any case, the recorded data is always immutable and shared by all participants.

It is no coincidence that applications in the field of digital identity and healthcare are among the most interesting.

One such company is Health Linkages, which leverages blockchain technology to promote transparent management of sensitive data, increase auditability of analyses and improve compliance in the healthcare sector. Thanks to Health Linkages’ blockchain, only authorised operators can share patient data. In addition, it records every single health event chronologically, providing physicians with a clearer picture for making medical decisions.

Discover opportunities for your business

According to research conducted by Fortune Business Insights, the size of the global blockchain technology market was estimated at $11.14 billion in 2022 and is expected to grow from $17.57 billion in 2023 to $469.49 billion by 2030, showing a compound annual growth rate (CAGR) of 59.9 per cent during the forecast period.   
With the expanding growth opportunities in the market and the wide range of possible applications and use cases, more and more companies are making significant investments in this innovative technology. If you would like to find out how your company can integrate blockchain into its business model, please email [email protected] to access our white-glove services.

With the expanding growth opportunities in the market and the wide range of possible applications and use cases, more and more companies are making significant investments in this innovative technology. If you would like to find out how your company can integrate blockchain into its business model, please email [email protected] to access our white-glove services.

Understanding OTC: beneficial for large-volume transactions in the crypto market.

What does OTC (over-the-counter) mean in the context of the crypto market? This term refers to transactions that occur directly between two parties outside of exchanges. OTC trading is particularly popular among traders handling large-value orders, as it offers distinct advantages.

Explore the meaning of OTC and why it’s a compelling option in this article.

What does OTC mean?

OTC stands for over-the-counter and refers to financial transactions conducted directly between parties, bypassing regulated or public markets. These operations take place privately between the buyer and the seller or through intermediaries like banks, dealers, or brokers.

The transaction terms—such as price, quantity, expiration date (if applicable), and other conditions—are negotiated directly. These negotiations can be done verbally, by phone, via email, or on a specialised platform.

Although OTC transactions occur outside regulated markets, they are still subject to prevailing financial regulations within the respective jurisdiction.

The advantages of OTC in the crypto market

In the crypto market, OTC trading has specific benefits, particularly regarding liquidity.

This service is often sought by institutional investors, high-volume traders, and individuals who wish to trade substantial amounts of cryptocurrency outside public exchanges. Typically, these transactions involve amounts exceeding €50,000.

Trading such large volumes on an exchange can lead to challenges for both the trader and the broader market participants.

Market volatility: The relatively lower crypto market liquidity than traditional financial instruments means that large trades can cause excessive price volatility. These temporary price spikes could lead to slippage for other traders or even trigger false trend signals (e.g., a bull trap).

Order fulfilment issues: Most exchanges lack sufficient liquidity to fulfil a large order at a single price point. To execute such an order, the exchange must aggregate smaller offers from the order book, often resulting in partial execution or rejection of the order if the volume is too large.

The Young Platform OTC desk

Young Platform’s OTC service caters to investors and businesses looking to buy or sell significant amounts of cryptocurrency.

Our clients’ needs extend beyond simple trading. Business accounts may aim to diversify corporate liquidity or to convert large crypto payments into euros, such as capital increases that require notarisation in fiat currency.

Key features of our OTC desk

• Access to over 70 trading pairs (crypto-fiat and crypto-crypto).
• Transactions start from €50,000, with no upper limit.
• One-on-one contact via phone.

How does an OTC transaction work?

• Contact the team via email.
• Receive instructions on accessing the desk.
• Get a quote: The OTC desk will provide a price and the estimated value you’ll receive. The offer is valid for one minute, during which you can accept or decline and await a new quote.
• Execute the order: Once you accept a price, the order is processed, and the corresponding amount is credited to your Young Platform account.

Additionally, you can request limited orders or support for transfers and related operations.

Contact us now to execute an OTC transaction at [email protected]. 

The information in this article is for information purposes only and does not constitute an incentive to invest.

Bot Only Euro: the solution for companies that want to receive crypto payments without worries

Young Platform has developed a number of crypto services dedicated to companies and businesses, one of which is BOE, Bot Only Euro. With this automated functionality, companies receiving cryptocurrency revenues can automatically convert these into euros and thus simplify their operations. 

A new revenue stream: crypto

More and more companies are accepting payments in cryptocurrencies, either because of the needs of their customers, who often demand to be able to spend their crypto-assets, or for internal predisposition. Indeed, some even choose to diversify their liquidity with cryptocurrencies, or include them in their investment portfolios. Consequently, accepting payments in crypto does not become a problem, but a plus.

There are numerous businesses to which the Bot Only Euro is dedicated, just think of import-export. Accepting Bitcoin and other virtual currencies can make international trade cheaper. If, for example, a partner company is based in a non-European country, where the currency has an inconvenient exchange rate, or whose banking system is inefficient, payment on blockchain can circumvent these obstacles.

Payments on blockchain are instantaneous, traceable, global, and therefore not limited by the banking or monetary system of the country in which one operates.

Moreover, on blockchain there is also the possibility of using cryptocurrencies with a stable price pegged to the dollar (the stablecoins), avoiding excessive volatility.

There is another frequent case of cryptocurrency adoption by companies: NFTs.

In 2020, the trend of Non Fungible Tokens was all the rage. These are blockchain-based digital objects that can represent works of art, collectibles or certificates. Thus, many brands and artists started to create their own collections: from fashion houses, to singers, to video games, these tokens have become a must-have for any entertainment brand identity.

But what does this have to do with cryptocurrency payments? 

NFTs in most cases are purchased with cryptocurrencies, which go to the author, i.e. in this case the company or artist. In addition, they can generate royalties, as they secure copyright on the blockchain and the corresponding remuneration for the use of the artwork.

Consequently, any company that issued one or more NFTs could receive payments and revenues in cryptocurrencies.

These are just a few cases, but the development of Web3 holds many new scenarios, which we have yet to imagine.

Young Platform’s Bot Only Euro

Due to the success of the crypto and NFT market, the need to create support services for companies that want to seize these opportunities has emerged.

This is why Young Platform first introduced the Business Account on its exchange, so that any company can buy or sell crypto. To receive cryptocurrency payments on the Young Platform account, any company can simply share its wallet address with the customer. To generate your address you just need to initiate the deposit process.

Once you start receiving cryptos, however, you have to take into account that they vary in price and may therefore lose or gain value over time. As a result, they may complicate business accounting, and you may also have to pay taxes on them depending on your country’s regulation.

Because of this, many enterprises prefer to convert the cryptocurrencies they receive into euros, so that they also have more liquidity and can reuse it for operational expenses.

The BOE (Bot Only Euro) service does exactly that: every payment received on the company account is automatically and immediately converted into euros at the market price. The solution is flexible: you can select which cryptocurrencies to convert automatically, leaving open the possibility of not converting all of them.

Activating the BOE feature on cryptos avoids the fluctuation of their value, no capital gains or losses are generated, and consequently no income taxes are required to be paid on these crypto-assets (but be sure to check your country’s tax law). It also speeds up operations, as there is no need for manual sales transactions.

The advantages of the Only Euro Bot are plain to see! Find out how to activate the functionality by contacting the Business Services team now at [email protected].