The pace of change and the threat of disruption
creates tremendous opportunities.
– Steve Case.
Blockchain technology is simply a digital record of transactions. The name speaks of its structure, in which individual records, called blocks, are linked together in single list, called a chain.
Taking a quick stroll down memory lane, trade by barter was our only reality of life when it came down to payments and purchase. Gradually over the years, life began to take a more sophisticated turn. People began to be more sophisticated in their thoughts and the ripple effect of sophistication in thoughts started birthing innovation.
Traditional payments came to fore and served humanity quite enough but of course, as sophistication in thoughts increased, human needs increased. Today, electronic payments have become an important part of our lives and now, we are already talking BLOCKCHAIN.
With advantages such as ‘transparency, security and so on, blockchain is taking on the future of payment systems. According to gobitcoin.io , Botswana, Ghana, Kenya, Nigeria, South Africa and Zimbabwe amongst others are some of the African countries jumping on this viable technology.
Let’s do a brief highlight on how blockchain can refine our payment systems.
FAST AS THE SPEED OF LIGHT
The blockchain technology is not dependent on any financial institution. This eliminates the restrictions, processes and bureaucracies that users would usually go through while using the conventional banking and payments systems.
The blockchain process can be summarized in a 5-fold stage:
- A transaction takes place
- Details of the transaction are recorded and confirmed.
- The data is stored as a dedicated block.
- The created block is given a unique identifier.
- The block is added to the chain, where its record cannot be altered.
Blockchain affords an alarming degree of accountability. Through its cryptographic features, it is able to make payments more transparent and systems more accountable. The terms of every transaction remain open for inspection to everyone or to authorized auditors.
Time will tell if blockchain would completely disrupt the banking industry. Stay up to date on more Fintech stories here https://techkudi.com