I am pretty much sure, you all know about Blockchain and Cryptocurrency. If not, I recommend you to read my previous post about blockchain and cryptocurrency;
Blockchain: Simple explanation
A short description of Cryptocurrency
Now it is matter of time, Blockchain Technology will disrupt traditional banking systems and payment systems. All we need is more more involvement with Blockchain .
When we send money to someone, we always want it to be fast and secure. Second thing is transaction fee and anonymity. And we can expect all these from Blockchain technology.
Now the question is will Blockchain can take over traditional payments systems?
Recently we have noticed some big institutes (financial) started working with blockchain for implementation in their systems to reduce time and cost and it is more transparent then traditional system.
Blockchain has great impact on traditional payments systems such as financial institutes and traditional banking systems.
We use bank to store our money and send payments to others. Bank process these transactions and keep record and we pay bank to process this. If we use Blockchain for this purpose, we will able to reduce our time as well as the fees.
In question of loan, bank usually take long time to verify documents and it’s a lengthy process. Sometime they do repetitive tasks to process the loan. But we can do this easily and instantly by using smart contract. I will discuss more about smart contract in my future post.
When we use bank for trading our product, it usually take more than three business days to process the settlement. But using Blockchain it can be done almost instantly. Now many organization are coming forward to solve these problem using blockchain technology.
We use bank to keep our money safe in our accounts. But we don’t know what are they doing with our money. How they use our money and where is our money going. Blockchain can solve these this problem as every transaction will be recorded on blockchain ledger and it is transparent and secure.
Many companies based on blockchain technology are taking initiative to disrupt traditional banking systems by innovating new ideas.
Bitpay is a blockchain payments systems, that offers users to pay via blockchain. They support bitcoin and bitcoin cash and transaction fee is very low.
tenx is another blockchian company, offering TenX card which can be used on multiple virtual currencies. There is no spending and exchange fees.
When we transfer money overseas in traditional banking systems, there is a process of SWIFT protocol which is only used for payments order. This SWIFT system can be removed by Blockchain technology.
Ripple(XRP) comes forward to solve this problem. This is a real time settlement systems connected with banks, digital asset exchange though RippleNet.
There is no doubt, we always welcome new technology which are beneficial to us. In our financial system, we can use this revolutionary Blockchain technology which will replace our traditional systems for our better tomorrow.
