Blockchain for payment processing and money transfers
What is blockchain technology?
A blockchain is a digital ledger of transactions maintained by a peer-to-peer network of computers in a way that makes it difficult to hack or alter. The technology offers a secure for individuals to deal directly with each other, without an intermediary like a government, bank or other third party.
What are the benefits of blockchain?
While the U.S. dollar is issued by the Federal Reserve, no government agency issues or controls cryptocurrencies. This also means that the ability of any one government or agency to determine the fate of a public blockchain is eliminated. The primary benefit of blockchain is as a database for recording transactions, but its benefits extend far beyond those of a traditional database. Most notably, it removes the possibility of tampering by a malicious actor, as well as providing these benefits:
Time savings. Blockchain slashes transaction times from days to minutes. Transaction settlement is faster because it doesn’t require verification by a central authority. It is open for business 24 hours a day, 365 days a year, unlike banks and other intermediaries.
Cost savings. The lack of intermediaries reduces cost, as the fees associated with third-party transactions also are eliminated. Participants can exchange items of value directly. Blockchain eliminates duplication of effort because participants have access to a shared ledger.
Accuracy and Tighter security. Because the transaction involves little human interaction, there is a lower risk of error. Each transaction must be confirmed and recorded by a majority of the network nodes, which makes it vanishingly difficult to manipulate or alter information. Blockchain’s security features protect against tampering, fraud, and cybercrime.
Transparency plus anonymity. All transactions on the blockchain are recorded on computers across the network. Transactions are completely transparent because the address and transaction history of wallets, which hold the cryptocurrency, are publicly viewable, but the owners of each wallet connected to those public addresses are anonymous and not recorded.