How can blockchain be used for payments?
Nowaday the word ‘blockchain’ is pronounced more and more times, and it is becoming very widespread in a lot of countries. You can use this technology almost in every line. We would like to give you clear and understandable information why this is perspective and how to use blockchain for payments.
Blockchain was developed more or less recently. But its appearance compared to the advent of the Internet. Speaking clearly, blockchain is a distributed base of data, which stores information about all made transactions. The records are not located are distributed among all members. These members of the blockchain system, in their turn, automatically see all changes were made.
The key benefits of this system are transparency, security and clearness. All actions of all participants are open,it prevents the falsification of information. Due to the fact that there is no single data center, they cannot be deleted, for example, during a hacker attack, that is why it is better used for payments
Blockchain is interesting for companies as a means of simplifying and cheapening many business processes and way of payments. Potentially, technology can eliminate many intermediaries between people, during transactions or other operations.
It is not surprising, that technology quickly became popular among companies from various industries. According to the forecasts of the analytical company Transparency Market Research, by 2024, the global blockchain market will reach $ 20 billion, showing an annual growth of 59%.
The scope of the blockchain is impressive: from secure services for citizens to the gaming industry (for example, online casinos, where the algorithm cannot be “twisted” to please scammers).
Special wonder is noted in blockchain in financial corporations and foreign companies. This is confirmed by the statistic of a global survey on the prospects of the blockchain, which PwC conducted this year among more than 1300 heads of large companies from 71 countries in our world. Almost 35% of participants from the banking sector talk about exploring the potential of blockchain, while 90% of representatives of solvent companies plan to implement blockchain by 2020.
In relation to the banking sector itself, here the blockchain opens up enormous prospects. For example, some banks are already testing the Ripple system based on the technology. According to preliminary data, it allows you to tranfer a payment from Germany to Canada in only 20 sec, instead of three days.
Such world banks as CIBC, ReiseBank, National Bank of Abu Dhabi (NBAD) and some others are checking the possibility of testing blockchain in international transfers. This is worth mentioning the large-scale SWIFT initiative - a project to develop a blockchain application to accelerate cross-border payments and increase their reliability. More than 100 financial institutions have already joined this initiative and spend 75% of all world cross-border payments in the SWIFT.
All these benefits of blockchain show, that the blockchain system makes a way of payment faster, safer and available, in conclusion it is becoming more widespread technology of making deals between many companies.