How is Blockchain Technology Impacting Future of Payments?
Revolution in Digital Currency is changing the world upside down, as we know the existing currency system of world’s most central banks failed to deliver an efficient system where the value of the currency is stable across the whole world.
This gave birth to one of the world’s most expensive cryptocurrency system as we know today as “Bitcoin” also called the first decentralized digital currency. Founded by Satoshi Nakamoto in 2009. This system is peer-to-peer and the transaction place between users directly without intermission of any central banks.
This makes Bitcoin very reliable, cheaper & valuable till today across the whole world as a replacement of real currency.
What initially started as Bitcoin had expanded into a list of over 900 crypto-currencies. Every month at least one new cryptocurrency is introduced to the world by blockchain developers across the globe. By market capitalization, Bitcoin is currently the largest Blockchain network, followed by Ethereum, Ripple, and Litecoin.
Bitcoin and all other Crypto Currencies are simple applications that are leveraging the Blockchain Technology to send money around.
Millennial and all the other generations are slowly and steadily starting to invest in this new Digital Asset Classes, adopting the Blockchain Technology to make their day to day payments. The World has evolved from Bitcoins to BitLoans and talks are underway to form Bitcoin Exchange Traded Funds.
Two decades ago, Central bankers were discussing countries around the globe switching themselves to regional currencies like Euro, Rupee, etc.. and probably use of a ‘One Global Currency’ in future. But now they are of the opinion that every country may have their own Digital Currency in future.
As a result, financial industry giants in payments processing industry are converting and adapting themselves to new emerging delivery approaches for instant payment processing such as Blockchain Technology that incorporates real-time fraud prevention methods.
The technology that made micropayments practical is Blockchain. Now many financial institutions have seen the potential and have begun researching on it. Sooner the World will witness all financial transactions, from paychecks to derivative contracts residing on a public distributed ledger.
Thus everyone, including regulators, would be in a much better position to see dangers they may have to face whilst processing the payments. If a major bank runs into a trouble, regulatory authorities wouldn’t have to worry about the impact on vital payment or ledger systems.
In future, the Internet of Things will need Blockchains to manage ultimately trillions of daily transactions. Blockchain technologies will beat traditional financial services companies that cannot manage micropayments and settle payments.
Change is Inevitable, Be proactive to change. Be with illuminated leaders to discuss the change forehand.