Blockchain Continues To Advance Into The Payment Environment Posted on : Jun 20 - 2018

While the debate continues over the use of cryptocurrency like Bitcoin as a legitimate way to make payments, blockchain steadily advances into the world of payments behind the scenes to change the transaction environment. In my own work, I use blockchain to provide a much more secure environment for the transactions our customers need to conduct with their clientele.

However, blockchain now has many more advancements that are seeing it penetrate the payment scene and potentially make it a much more accepted payment technology. Sharing this information can help more startup founders and business decision-makers see why they should consider adding blockchain to their payments systems.

A Quick Primer On Blockchain

Many have heard the term, but few may actually understand what blockchain really does. I like to explain that blockchain is similar to virtual Lego. It's a set of blocks that are constructed into a chain as each transaction occurs. The chain of transactions cannot be reversed, changed or manipulated in any way once it is formed. The fact that the information cannot be altered and the system is decentralized makes it one of the most attractive technologies to use for payments and financial transactions.

New Payment Innovations

It's the idea that blockchain can improve the security, speed and cost of each payment that has more companies looking for ways to innovate through the addition of this technology. Cross-border payments using blockchain are an excellent example of new payment innovations.

For example, look at BitPesa, a company in Kenya that I recently heard about that provides a way to send payments without requiring any bank accounts between parties. This same type of system is now being repeated in numerous countries that do not have a local banking infrastructure to support payments. Also, companies like Ripple are working with numerous Japanese banks to create efficient cash transfers through the application of blockchain technology. View More