What Are the Possible Advantages of Blockchain Technology in Online Payments?

What Are the Possible Advantages of Blockchain Technology in Online Payments?

August 4, 2018 Off By Steven Anderson

Digital payment marketplace is on a steady rise. The increase in the usage of online payments can be associated with factors like demonetization and the efforts of the government to support mobile-based transactions.

With an increasing number of people opting for digital cash and various payment method being produced to back digital transactions, the move for a digital economy appears very likely. Nevertheless, one continuous challenge is seeking a way to standardize the functionality and structure of online payments in some country.

In case you didn’t know yet, blockchain serves as a digital leger. It keeps records of all transactions which happened in an encrypted database. During online transactions, blockchain allows users to send, obtain and manage their accounts without the help of an intermediary.

Blockchain tech for payments was built for the efficient running of Bitcoin digital currency. However, there are continuous attempts to utilize Blockchain in the non-Bitcoin transaction. When this groundbreaking way to pay takes off, it could demonstrate helpful for businesses in countless ways.

FASTER PAYMENTS

Every time money is being transferred from one source to another source; it would take several days for the receiving end to verify the payment. That’s because the money has to travel first to the respective financial organization for legal purposes. With blockchain, there’s only you and your clients. There’s no need for middlemen to control the flow of money.

BETTER FINANCIAL MANAGEMENT

Mobile payments and online transactions have become big data. That denotes businesses need more information which requires to be processed. Considering the ease of use and speed of blockchain technology provides, dealing with big inflows of money will become easy for industries which embrace the technology.

For instance, XinFin uses areas of application that puts it on the path of worldwide adoption. It features the provision of cross-border transactions, real-time payment settlement system, smart contracts and dApps, use in compliance industry as well as a hedge pool through its TradeFinex platform for cost stability.

XinFin is a union of the top qualities of two famous platforms: Quorum and Ethereum. The factors combine with the great XDC protocol to enable content developers to establish real-life applications.

SAFE REAL-TIME PAYMENTS

Security is still a huge issue, particularly in those still-young digital marketplaces. On the other hand, blockchain technology has the power to solve safety concern even as online transactions are being performed. That’s because its whole algorithm is grounded on an open-to-all platform. That guarantees complete transparency between the seller and the buyer.

ACCESS TO WORLDWIDE MARKETPLACE

Businesses which embrace online transactions utilizing blockchain technology is will benefit on an international scale. That’s because blockchain is a decentralized money management system. It allows anyone in an encrypted database to transmit and receive money. Further, blockchain will benefit multinational corporations who have to manage with different currencies, different rates, and small businesses. These are agencies who have settlement issues but can scale up quickly in the digital world.

While the idea of XDC hasn’t launched very well in some countries, other countries have already greenlit the use of the blockchain technology, particularly in the hopes of enhancing operations in the business and banking sector.

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