The growing interest in block chain technology has taken off in recent couple of years mainly because of its promise to simplify the technology infrastructure needed to run financial services, legal services, healthcare, and government. A blockchain network is a secure, low-cost payment rail for moving assets peer to peer over the internet.
According to the recent reports, more than twenty-five major banks are adopting its uses daily, around 100 startups are developing block chain-based applications and nearly $1 Billion of venture capital has been invested to date.
Payment methods have been morphing through various channels: from cash to cheques, to credit cards and debit cards, online banking and mobile commerce, and now to blockchain software.
Block chain technology is a step where asset transfer finds its true meaning and aims to break the constraint of third party intermediaries and overhead costs for exchanging assets.
Here are some good reasons for adopting block chain technology:
• Block chain software have the potential to greatly reduce cost related to the transaction.
• Confirmation happens in seconds not minutes and processed continuously.
• It is peer to peer as the transfer of assets takes place directly between the parties who control the assets.
• It requires minimum authentication and verification to establish the legitimacy of the payments.
• As the networks are built for specific markets and can issue and transfer any asset, it doesn’t require a bitcoin currency.
• Transactions are ordered by trusted parties that form a federation without mining.
• Scalable: 1000s/sec (transactions).
Mobile technology plus mobile banking with the use of blockchain technologies for financial inclusion can allow value transfers happen B2C, B2B, and P2P.
Apart from the security implications and increased transparency of transactions for all parties, block chain technology can have a beneficial impact on pricing and costs in the market.