The future of blockchain looks bright and feels like it is the next world wide web kind of tech. Blockchain can revolutionize fintech industry and social media if we use it well.
Don’t know what blockchain is? Head over here.
A traditional payment network under threat is SWIFT – Society for Worldwide Interbank Financial Telecommunications. It facilitates global money transfers among more than 200 banks. And it takes a minimum of one day to process a transaction. Not to mention that these cross-border transactions mostly include a currency conversion process. And the institution involved in between will give lousy currency conversion rate, and sometimes, conversion charges on top of it.
Even with the credit card purchases that are of different currency than the card’s currency include poor currency conversion rates. Also, these conversions incur service taxes on top.
Keeping that apart, what about microtransactions?
What if you want to send 100 dollars from the USA to India?
There are few options.
- PayPal – high conversion rates, 5% fees on top of that, and it takes around three days to get money from PayPal to the local bank account.
- Wire Transfer – forget about it, each transfer attracts 30 USD fee, and you know the bad conversion fee in between. On the other side, the local bank charges extra for processing the incoming transaction.
Blockchain already proves these transfers can be done in minutes, if not seconds. And it can make them less expensive, costing just a fraction of dollar.
This is how a transfer would happen if the sender uses blockchain.
- Alice wants to send 200 USD to his friend Bob in India.
- Alice chooses Ether (ETH) to send the money.
- Currently, that roughly converts to 0.38 ETH.
- Upon receiving Bob converts ETH into the local currency Indian Rupee (INR) by selling it.
- Within minutes the transfer would be complete.
What if banks itself use blockchain technology? That would be better than the above process.
What if merchant acceptance of cryptocurrencies like ETH grows? International purchases will have less overhead costs.
Ripple, a distributed ledger technology based payment system, is already serving banks like American Express, UBS, and Santander. Ripple, however, does not operate on a public blockchain – that is, the company itself takes decisions and is more centralized, contrary to the core philosophy of blockchain technology, which is to be more open to public involvement.
Anyhow, we expect public blockchains, in the near future, will become dominant players in the cross-border payments industry.
Social Media can be The Future of Blockchain
Recent Facebook data scandal reveals how a billion dollar company is reckless with user data. Social media is a digital footprint of people’s lives, ideas, and perceptions. Using that data without user consent is a violation of fundamental human rights.
Blockchain can address this problem by giving complete control of the data to users. More the blockchain technology is decentralized, the less an individual entity can control the data.
One example is STEEM blockchain. It is a social platform for bloggers and writers to publish their work. The platform rewards users who curate and create content without depending on ads. And, for the platform, anybody can create an interface to present the articles on the blockchain beautifully. One such example is steemit.com.
Not only protecting data, but blockchain can also start a new social media revolution: one that is more transparent, reliable, and, of course, less intrusive.
The reason why the future of blockchain is garnering more interest is that it can solve many problems we face today.
Lately, we had an outrageous idea. What if every individual has his own blockchain that helps in various aspects of the individual’s life?
Wouldn’t that be amazing if all these individual blockchains can talk to each other?
For example, your taxes will be calculated from the data on your blockchain by the tax department. And the tax department automatically deducts tax without a need for sitting, calculating, and verifying.
Your bills, wages, and purchases, all of them can become more seamless and automatic.
Well, we went too far into the future. But we believe the future of blockchain holds this promise.
What do you think? Comment below.