April 19th, 2018
In just the last year, we saw the wild ride of Bitcoin, which garnered the attention of millions around the world. The price of this digital currency surged to $20,000 and now in just the last couple months the price has dropped to some degree. It’s because of the volatile nature of Bitcoin, that the underlying blockchain technology is making the news. However, many people are unaware that Bitcoin isn’t the end of blockchain technology. Interestingly, blockchain technology is getting a huge response from people and businesses around the world.
Bitcoin is receiving a lot of praise for its fast and efficient payment system. With this new digital currency, you don’t have to worry about currency exchange rates and foreign fees, this trend has started to fall out of favor. The transaction costs are continuing to rise and in a few cases, it’s on par with credit card payment processing fees. What’s even more frustrating,is that transaction times are getting longer because of the limited size of blocks which are taking longer to process over the network.
By the end of 2018, you may see Blockchain payments moving away from Bitcoin and start to use other digital currencies. Various other digital currencies are becoming popular such as Litecoin, Dash, and Bitcoin cash. The best thing about these digital currencies is that it offers faster transaction times with lower fees, than those compared to Bitcoin. There’s a chance that Bitcoin will be seen more as a store of value or commodity and less as a mode of payment in the future.
Blockchain technology is widely used by entrepreneurs and businesses from around the world. However, blockchain payments for all cross-border payments may be used by the majority of people in 2018. Top businesses such as IBM are looking into ways to use the Blockchain technology to send payments across borders. They are considering it for more than just digital payments as well; companies are looking into platforms that will allow blockchain payments of traditional fiat currencies to process instantly. This may considerably cut down the time it takes in setting up and sending wire transfers.
Many banks and institutes are skeptical about Bitcoin, but they can’t ignore the benefits of blockchain payments for long. Some financial institutes are planning to include this new technology as soon as possible. Financial institutes or banks will likely move toward adopting blockchain technology for various purposes – especially trading functions and payment processing.
With the inclusion of blockchain technology, all trading and payments can be streamlined. Some institutes may even be interested to have their own platform and accordingly utilize it. Many banks are showing interest in using blockchain technology for transactions and this number will keep increasing with time. It’s expected that many US banks will start using this technology by 2018.