The rise of blockchain based payment networks is happening at lightning speed, and it seems it will only continue to accelerate in the future. The use of the technology is rapidly expanding and companies such as Bitcoin Services, Inc. already managed to take advantage of its potential.
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What Is Blockchain Technology?
A blockchain is basically a decentralized ledger that contains monetary transactions across a P2P network. The transaction request made by a user is broadcasted across the peer to peer network. After everything is validated, the data is added to a chain in a block.
The Future Of Payment
There are numerous benefits when it comes to blockchain technology. For example, since transactions are encrypted, the security is better. Additionally, there is more transparency because all the transactions are stored in the P2P network. This technology is more efficient as well, and transactions are almost instant.
According to a recent Banking Industry Outlook report, it is very likely that blockchain based payments will equal the volume of the United States’ Automated Clearing House financial transactions network by 2020. For more information on this, you can head over to Filthy Lucre.
A blockchain that uses a smart contract manages to offer users a single ledger and balances can be maintained easily. Smart contracts could be very useful because it sets clear rules that cover all aspects of end-to-end payments so that there are no mistakes and errors.
Other Uses
While blockchain technology is mostly used for payment networks, there are other uses for it as well. For example, some countries are starting to use blockchain for voting, as it increases transparency. There are also technologies which are used for file sharing and storage.
Blockchain technology is also used for gambling because it allows people to remain anonymously. The technology is also good for cybersecurity and it is used for device authentication by security systems.
Banks
Banks are also making use of the blockchain technology. For example, the Deutsche Bank declared that they are analyzing the uses of blockchain for payments, AML registries, asset registries, regulatory reporting and many other areas.
The DBS Bank had a blockchain hackathon in Singapore, with the help of Startupbootcamp FinTech and Coin Republic, which is a bitcoin company from Singapore. The APIs for the hackathon were provided by Colu, Blockstrap, and BitX.
The US Federal Reserve is working with IBM in order to create a new digital payment system that is tied to the blockchain. Fidor Bank is also aiming to offer a digital currency exchange in Europe.
Cryptocurrency
Cryptocoins are tightly connected to blockchain technology. In the future, cryptocurrency will play a huge part in our economy. The rising popularity of cryptocurrency also means that it will probably come under government regulation at some point.
If you are interested in even more cryptocurrency-related articles and information from us here at Bit Rebels then we have a lot to choose from.
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