The Future of Online Payments is Here
The Future of e-Payments is Here
The future of e-commerce payments lies within blockchain and cryptocurrencies.
Blockchain has tremendous potential for online merchants and the digital economy
So what is blockchain technology?
Blockchain is the creation of Satoshi Nakamoto, a pseudonym for a person or group of people. Accroding to Don and Alex Tapscott, The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” Blockchain allows digital information to be distributed as opposed to being stored on a central point (centralised). According to Investopeida {https://www.investopedia.com/terms/b/blockchain.asp}, digitized, decentralized, public ledger of all cryptocurrency transactions. The blockchain is constantly growing as completed transactions or blocks. These completed blocks are added to the blockchain in chronological order, and allows market participants to keep track of all transactions without the need for central bookkeeping. Each computer connected to the network receives a duplicate of the blockchain. The blockchain was originally conceived to serve as a bookkeeping method for the digital currency Bitcoin, by means of distributed ledger technology (DLT). This technology is utilised to verify transactions within digital currencies. The advantage of the blockchain is that the record of transactions is unalterable and that the authenticity of a record can by the entire community by means of the blockchain. Thus there is no need for a centralised authority such as a bank.
So how is crypto and blockchain revolutionising ecommerce?
The financial industry presents many oppportunities for the utilisation of this technology.
As web infrastructure, you don’t need to know about the blockchain for it to be useful in your life. Thw World Bank estimates global remittances as approximately U$600 billion for 2017.
Global remittances, which include flows to high-income countries, are projected to grow by 3.9 percent to $596 billion. A middleman is required for these transactions and money-flows to succeed. The decentralised blockchain offers the potential to cut-out the middleman with these transactions. Cryptocurrency can easily be transferred to all members on the nework. For example, Bitcoin transactions occur between various parties, irrespective of location, without the need for a middleman.
What other business oppportunities are streamlined as a result of this technology?
Smart Contracts
Distributed ledger technology enable for the coding of simple contracts that will be executed when specified conditions are met. Ethereum, is a is an open source blockchain project and cryptocurrency that allows for the creation of smart contracts. These contracts can be programmed to process a payment once a benchmark or milestone is achieved.
Governance
Blockchain technology makes results fully transparent and public. Distributed database technology brings transparency, solid record keeping and accountability.
Sharing Economy
The sharing economy is a success. Currently, however, users who want to make utilise a services need to make use of an intermediary like AirBnb or Lyft. Blockchain enables peer-to-peer payments, thus allowing direct interactions between parties. This results in a truly decentralized sharing economy.
OpenBazaar uses the blockchain to create a peer-to-peer Amazon. OpenBazzar vendors and customers can engage in business transactions without paying fees.
Supply chain auditing
Distributed ledgers provide allow easy verification of the history of products. Transparency comes with blockchain-based timestamping of a date and location.
File storage
Distributing data throughout the network protects files from getting hacked or lost.
Protection of intellectual property
Smart contracts can protect copyright. Smart contracts can also automate the sale of creative works online, thus eliminating the risk of file copying and redistribution.
Identity management
Distributed ledgers offer enhanced methods for proving who you are, along with the possibility to digitize personal documents. A secure identity is required to succeed with online interactions — for instance, in the sharing economy.
(Know Your Customer)KYC
Know your customer (KYC) systems provide great potential opportunities for adoption with blockchain technologies. Blockchain provides the possibility to store customer data cryptographically. KYC costs could be reduced through validation on the blockchain
Stock trading
Blockchain enables for the execution of peer-to-peer stock transactions. Transaction confirmations become almost instantaneous Potentially, intermediaries — such as the clearing house and auditors get removed from the process.