Using Ethereum Classic for Business, Part II
You can listen to or watch this video here:
In our previous post we explained what interesting tools and features on ETC may be used for business.
We described eight of these use cases including regular payments using providers such as NOWpayments, international payments due to ETC’s secure crossborder capability, the use as treasury reserves due to the cryptocurrency’s soundness, that it may be used for dapps that provide useful services, businesses may migrate their existing dapps to ETC, all sorts of contracts from corporate to commercial may be created on it, to use different accounts for different purposes, and that all this may be managed with multi-signature setups for enhanced security.
In this post we will give some examples of types of businesses who may use ETC using the tools and features mentioned above.
Sole proprietors and independent contractors may find ETC very useful because their organization resembles that of individuals.
One advantage of using Ethereum Classic is to get paid in ETC. As it is sound money, to receive part of the revenues in ETC and to convert them into business capital or savings may be a good deal in the medium to long term.
With the right wallet, sole proprietors may have multiple addresses on ETC for different categories of their account plan or chart of accounts. For example, they may have one address for revenues, another for expenses, and yet another to accumulate pending tax liabilities. They may even use one address per client and provider so they can track exactly the cash flows per entity.
Another use case for ETC is to use dapps. In the near future, it is very likely that decentralized finance will be the most common type of dapp, but in the medium term more services, from legal to logistics, will be available on-chain.
One of the most fascinating concepts in the programmable blockchain segment is the creation of decentralized autonomous organizations (DAOs). The first thing that companies will want to do is to use ETC to transfer and manage their legal personhood.
Owners will own tokens of a DAO, this DAO will be the company itself, and contracts with providers, clients, and employees will be smart contracts between these parties on Ethereum Classic.
If the business is a car rental company, for example, the car will be an NFT on-chain, the rental contract will be a smart contract, the payment will be made by the customer from an ETC address, and the insurance will be another smart contract. All will be composable and happen seamlessly on the blockchain.
Of course, companies may also use ETC for payments, international payments, treasury reserves, dapps, to migrate their dapps, and to use multi-signature setups with the same rules and permissions as in traditional banking.
International Remote Workers
There are countless international remote workers today. The way to use ETC for this labor relationship, international remote workers may set up their own non-custodial wallets to receive payments, and then accounts at Binance (outside the US) or Coinbase (inside the US), or other exchanges, to change ETC to their local currency. Whatever is left over for saving they may want to leave in their non-custodial wallets.
This is good for digital marketers, developers, engineers, support agents, sales agents, graphic designers, legal and paralegal services, writers and editors, translators, accountants, and many more kinds of remote workers.
Similar to sole proprietors, remote workers may want to use different addresses on ETC for different categories of their income and expenses, and if they work for various employers, they may even use one address per employer in the same wallet app.
Businesses Who Hire International Remote Workers
On the other hand, businesses who hire international remote workers, will want to set up their employees and contractors with non-custodial wallets, help them set up accounts at Binance, Coinbase, or other fiat-to-crypto exchanges, and teach them how to convert ETC to their local currencies.
Usually, tax liabilities of foreign workers are the responsibility of the employees or contractors, so they may want to use an extra ETC address where they can accumulate these estimated taxes.
In the near future, businesses will be able to provide more benefits and perks to their international remote workers and contractors, such as decentralized expense management, decentralized pension plans, decentralized insurance, decentralized medical plans, and many more.
All of these relationships and transactions will be composable and seamless on-chain on ETC and likely reduce the frictional costs of dealing with international payrolls and benefits.
If a social worker in Ukraine wishes to start a charity to help families who are refugees or fleeing, then she may set up a DAO on ETC, announce her cause on social media, and direct donors all over Europe to help her in her noble efforts by sending ETC to her DAO. In parallel she may post videos and images of her progress helping refugees, their temporary shelters, their transport, and their wellbeing.
If a marine biologist in Perú wishes to set up a non-profit to help her finance a fish traceability system, she may announce her addresses to donors all over Latin America, and receive donations from people in Brazil, Argentina, Colombia, Mexico, and Jamaica.
The above examples are to show that no matter where donors or causes are, ETC serves as an international, permissionless, crossborder, system to transfer value that is neutral and reliable.
Similar to non-profits, churches must rely on tithes and offerings to finance their work, but these are mostly local.
For churches to accept ETC from their congregations, they must set up non-custodial wallets for the various authorized members of the church staff or church family.
Then, they must set up multi-signature addresses for their congregations to donate, and use an account at Binance (outside the US) or Coinbase (inside the US), or other fiat-to-crypto exchanges, to be able to move money from ETC to fiat and vice versa.
As churches may have long term reserves, they may also wish to accumulate part of their ETC donations into these reserves.
For solo miners or mining companies, the single best idea they may have is to start mining ETC!
As ETC will have a supply cap of 210,700,000 ETC, and there are more or less 140,000,000 already issued, then there are more or less 70,700,000 still to be issued. This is an estimated value of $1.4 billion in revenues at current ETC prices of around $20, of which $770 million will be paid to miners in the next 10 years alone.
Once miners are working on ETC, then they may use ETC for their operations, to accumulate capital reserves, to pay their bills, employees, remote workers, for their account plans, dapps, and all the other benefits mentioned in this post.
Finally, privacy services may find ETC very useful to enhance the service for their customers.
If the VPN service itself is private, but the payment is done with insecure, hackable payment mechanism, then the whole purpose is significantly defeated.
But, if VPN services enable their users to activate their connections and pay in ETC from their addresses on the blockchain, then true privacy may be provided.
Thank you for reading this article!
To learn more about ETC please go to: https://ethereumclassic.org