• Susan Craig, at Content Writer


• 28.01.2023 03:15 pm
#payments

The term "blockchain" has been used since 2008. The technology itself appeared a little earlier. In such a short period of time, blockchain has already become a revolutionary technology. Statistics show its rapid development: the size of the global market for cryptocurrency payment applications in 2021 was estimated at 545.4 million USD, and it is expected that the compound annual growth rate (CAGR) will be 16.6% between 2022 and 2030. What can we expect from the possibilities of this technology in 2023?
How blockchain is used for payments
Now it is difficult to find a person who uses the Internet and has never heard that blockchain technology has found the most significant distribution in cryptocurrencies. But that's not all. With great speed and success, blockchain is being introduced into the banking system, international payments, insurance, real estate, public administration, healthcare, etc. Using blockchain for financial transactions allows to enhance payment transparency and, therefore, security.
If we talk only about the possibility of making payments, then certain use cases are highlighted.
Internal payments
Blockchain-based peer-to-peer payments can be used in a variety of areas: from retail to healthcare. You can also use this technology for payments that use a QR code. Data about the recipient and the selected currency in this case is contained in the code itself.
Securities trading
For this option, the main advantage is the transparency of the fulfillment of financial obligations by partners. Complete data security is also considered an advantage. For events determined in advance, it is possible to enforce payments. This is especially important in multilateral transactions involving a large number of partners.
Payments for tax liabilities
Blockchain is a technology that eliminates late filing of taxes and tax fraud. In the chain, it is impossible to change the number of payments that are taxed, to forge, withdraw, and add documents. All records are permanent and immutable, so inspections by the tax authorities are faster and easier.
   
 Cross-border payments
Instant settlements without the participation of intermediaries are not only a significant time saving for data processing, but money for paying commissions to intermediaries. The chain also stores all data on the previous transactions of each party to the transaction, which makes payments more secure.
The main functionality of blockchain-based payment systems
Blockchain-based payment systems can be developed taking into account the characteristics of each individual company, the specifics of its activities, customers, partners, etc. Therefore, in projects, you can create systems with different functionality.
Instant payments
If it is important for a company that all calculations take place in real-time, then blockchain is the only right solution for it. At the same time, payments are made around the clock, without interruptions, both within the system and outside it, and it is also possible to make instant international payments without the participation of intermediaries.
Accounting automation
Blockchain is not only a calculation but also an environment for document management. If the solution on the blockchain is synchronized with a certain system, it allows you to receive data from this system, then assign them timestamps, and organize all the data in a special decentralized database.
Automatic identity verification
This is an extremely important feature when it comes to implementing blockchain in the banking industry. To date, the requirements of "know your customer" oblige financial institutions to collect, process, and verify a huge amount of data on each client. blockchain technology automatically stores all the data of each client in one database.
Security
The use of blockchain technology involves unprecedented security measures. The use of multi-factor authentication, including biometric authentication, encryption, and the development of schemes for detecting fraudulent activities.
Support for multiple currencies
If necessary, you can create a solution based on blockchain technology, which will be fully multi-currency. That is, it will support all possible payment options, including custom currencies. This greatly expands the potential for solving any problem.

 It is also possible to create other solutions. Blockchain technology allows you to create completely transparent supply chains of goods, excluding the possibility of supplying counterfeit products. Simplify your customer base.
Even culture and art come to the aid of blockchain technologies. Now there is no need to obtain patents, prove authorship, etc. It is enough to use smart contracts that are built into intellectual property, automatically maintain copyright and allow you to monetize any work of art.
Instead of a conclusion, 2023 will be the beginning of an era of rapid development of the blockchain. Today, technology resembles the Internet, in the early years of its inception - many people know it, but they are waiting for others to prove the effectiveness of their use by their own example. And in such a situation, the one who was the first wins the most.