Blockchain Technology Transforming the Economy
It’s been several years since Blockchain Technology first became globally famous. It was the rise of Bitcoin that caused millions to invest in over 2,500 different cryptocurrencies. During 2008, a man named Satoshi Nakamoto created blockchain technology and allowed for bitcoins or other cryptocurrencies to be transferred through a database.
This became possible due to blocks, which allowed for a specific number of transactions to be completed via the block. Once the block is filled up, it would be given a mathematical formula that would give the block a signature named “Hash”. This is able to be done repeatedly and creates a blockchain. Millions of transactions are made through blockchains every day and generate revenue in the billions. These billions are then re-invested by brokers or investors into new economy projects, subsequently allowing for the economy to benefit. Furthermore, banks and governments are working simultaneously to create their own blockchain services. Global economies will generate tax revenue from government-support blockchain services.
Retail-Uses for Blockchain
When you go to a store to purchase a product with a credit card, Visa or MasterCard approves your purchase then waits to receive payment from you in a day to month’s time. Refusing to make payment results in interest fees of 3% or more.
Blockchain retail services will be able to eliminate the threat of interest feels as transactions are validated by blockchain platforms instead of credit cards, allowing you to access crypto coins. These coins will immediately be validated into the currency operated at the retail location and sent to their bank account.
Whenever the cryptocurrency isn’t enough to pay for the product at hand then transactions will be backed by additional cryptos from the blockchain platform. Paying those off will require new Bitcoins or other crypto’s to be loaded into accounts. However, there aren’t any additional interest fees placed onto clients and real-money doesn’t need to be spent in order to pay off debts. Consequently, this has upset credit card companies like Visa dramatically.
Cross-Border Blockchain Payments
Cross-border payments will be a significant factor for blockchain platforms wanting to grow in the global economy. The conventional method of sending money through banking services can take anywhere from five business days or longer. However, using blockchain services like SWIFT will allow for transfers to be made in a maximum of three business days. Wires will be free as well, instead of the normal $50 charge.
Another service trying to create blockchain cross-border payment services is Veem. Veem wants to transfer money globally by buying Bitcoins in the United States and then transferring over them to a client a Spain. That client can then sell the Bitcoin for Euro. This is a new way of making a financial transaction, but for one more step, it depletes the chances of having to wait a long period of time for transfers to be accomplished.