How Blockchain will Change Mobile Payments

Tech startups are rapidly adopting the blockchain technology. Attracted by the absence of middlemen such as banks and the desire to adopt a decentralized money transfer system, modern businesses may soon cause a disruption in the banking industry.

A blockchain is a decentralized, digital ledger of cryptocurrency transactions. A blockchain is open and verifiable but also secure and incorruptible. The blockchain was originally designed to serve as an accounting system for bitcoin. Today, the blockchain is used to verify transactions within cryptocurrencies.

Here is a breakdown of the blockchain:

• A block is part of the blockchain-a block records recent transactions made within the cryptocurrency.
• The block is registered into the blockchain after completion.
• There are numerous blocks within the blockchain, each linked to the other in a chronological manner.
• Every time a block is completed, another is generated.
• The blockchain consists of addresses and balances of all users within the network.
• The blockchain stores transaction information across numerous computer networks that verify information with each other every ten minutes.

Blockchain is a disruptive technology that is expected to influence mobile transactions in the future. It's fuelling a fundamental shift from how people use the Internet. When it is time to liquidate assets, blockchain mobile payments will soon be the first option for many companies. The technology's decentralized nature and complex security system will play a major role in driving this shift. Here are four other ways blockchain payment processing system will change mobile payments.

It's expected that blockchain driven transactions will increase 2018 onwards. A normal transaction to a friend who lives across the globe may soon take a few seconds to complete. At the moment, bitcoin still lags behind in facilitating speedy transactions. Some cryptocurrencies, however, offer lightning transaction speeds even when completing thousands of transactions.

The blockchain platform aims to offer an extremely secure system. Records are secured in a cryptographic manner with each set of records linked to each other. The way the blockchain security works makes it practically impossible to for someone to hack it. Data is secured in a vast number networks, meaning that a potential hacker would have to hack all the involved networks before getting access into the blockchain.

Mobile payment is already growing day by day. Major franchises such as Apple and Samsung have their own mobile systems. Mobile payment methods offer ease of use, making them more appealing to mobile phone users. With the advanced security and speedy transactions supported by the blockchain, mobile wallets will likely increase faster adoption of the new technology.

The average annual cost for remittance across the world is 7%. Cutting down this rate to 2% would lead to more than $16 billion dollars saved. Banks and organizations are already leveraging this benefit. In 2016, an Australian bank became the first bank to complete a blockchain transaction by purchasing cotton in the USA. Since then, banks and organizations aiming to eliminate middlemen (banks) have completed cryptocurrency payment processing from all corners of the world. This is likely to grow as small and medium businesses adopt the system.

Blockchain applications are expected to soar rapidly in coming years. Its advocates are already suggesting the use of the blockchain technology in voting systems, vehicle registration services and as a verification system for people who own valuable items. However, the blockchain's influence in changing mobile payments will likely be the most talked about topic. The future of mobile payments looks great with the blockchain on the forefront.