When Satoshi Nakamoto created Bitcoin in 2009 partly in answer to the financial collapse in 2008, he saw a future of a financial system that was just peer-to-peer, and you didn’t have to trust 3rd part institutions for transactions. Now several upcoming cryptocurrencies have been developed on the foundation of bitcoin. They are here to advance the digital transaction.
According to Statista, the total value of digital transaction division amounts to 64 million USD in 2019, and this value is estimated to show a yearly development rate of 20.1% leading to the cumulative amount of 134 million USD by 2023. So, the future of money is digital transactions. Let us see how it impacts the future of money with Cryptocurrency.
- Present Institutions Operate Better
With products on the market already, some cryptocurrencies, most remarkably, Stellar and Ripple, are working with current institutions to make their systems more advanced.
The Ripple Transaction Protocol (RTXP) is a connection of financial organizations on the blockchain. Any organization using RTXP can transact with any other member at a division of the cost and time it would take in a conventional system. This is especially suitable for international payments, which can usually take three to five days, and members pay 1.6 trillion USD yearly.
Initiated by a team member from Ripple, Stellar is causing quite an impact on digital transactions. The project has combined resources with IBM to also expedite more efficient global payments.
- You Have Complete Command of Your Money
Among the most significant advantages blockchain technology brings to digital transactions is the control over money. With blockchain, you no longer need to trust banks with your payment. It is kept on a permanent ledger that is almost impossible to hack or manipulate. Nearly every cryptocurrency today and upcoming serves this objective. All of them use blockchain technology so your trust in the open-source code of the code rather than any easy-to-corrupt institution.
With cryptocurrency used with mobile app technology for transaction, no one can suspend your money or direct you when and where to spend your funds. Your funds, private keys, and wallets are totally in your control. This is the number one rule for any prominent cryptocurrency.
- Transactions are Peer-to-Peer
Blockchain technology also reduces the requirement for middlemen in digital transactions. Upcoming cryptocurrencies such as Litecoin and Bitcoin specialize in such kinds of transactions; however, there are some more modest projects you should be conscious of also.
Firstly, we have Nano, which has gained some fame for its absence of fees and almost instant transaction times. Though it isn’t as thoroughly tested as bitcoin, it has a promising future for fee-less peer-to-peer transactions. Then we have Request Network, which is increasing beyond mere peer-to-peer transactions by developing a blockchain interface like PayPal. When you use this platform, you request and send money while bypassing 3rd party agents.
- Increased Access to Banking Services
Most significantly, the latest cryptocurrencies are providing digital transaction services to the population around the world with no access to banks. Whether it’s because it’s unaffordable, they can’t qualify, or the places they live lack banking institutions, this group is often under-served.
Several cryptocurrencies are making transactions widely available and more affordable to such people. Stellar, for example, offers financial institutions a way to provide low-cost accounts and also loads with better interest rates. Now, business owners in developing countries can get a loan more efficiently and boost the economy while at it.
- A Whole New Financial Framework Could Endure
Leaving behind conventional financial structures, it is possible that a new technological framework will be supporting the whole financial sector soon. Wanchain, for instance, is just a project trying to create finance from the bottom. Instead of linking into present structures, they are creating their own. Their objective is to design a whole ecosystem based on blockchain. Instead, Wan chain’s breakthrough could imply that brick-and-mortar banks might go, becoming decentralized apps on the blockchain.
Blockchain technology is now starting to have a significant impact on the digital transaction. With founded cryptocurrencies such as Bitcoin, you receive a reliable commodity of benefit, trusted peer-to-peer transactions, and total monetary power. Other future cryptocurrencies are making meaningful results, as well. Behind digital transactions, more current projects are mainly concentrating on serving the unbanked, building blockchain technology to be more flexible, and implementing functional interfaces. The future of Cryptocurrency 2020 might even make traditional transactions obsolete.
Manan Ghadawala is the founder of 21Twelve Interactive which is one of the best mobile app development company in India and the USA. He is an idealistic leader with a lively management style and thrives raising the company’s growth with his talents. He is an astounding business professional with astonishing knowledge and applies artful tactics to reach those imaginary skies for his clients. His company is also recognized by the Top Mobile App Development Companies.