Blockchain-Powered Transactions — Reducing Costs and Removing Intermediaries.
The rapid evolution of technology makes it imperative for all stakeholders of the financial ecosystem to welcome the changes and adapt to them as seamlessly as possible. Technology challenges traditional processes and conventional beliefs and provides innovative solutions for obsolete and redundant ways of doing things. Banks are one such institution that has long been enjoying the status quo. Technology intends to change this.
Blockchain — An Incorruptible Ledger
With the introduction of cryptocurrencies back in 2009 came the revolutionary concept of blockchains. Blockchain technology eliminated the problem of dual recording of money and ensured that cryptocurrencies would have a permanent record of their transfers and ownership, free from being tampered or simply, hacked. This technology holds immense promise for the imminent future and a lot of applications of this technology are already under development. Blockchain technology is also redefining the way financial transactions are being carried out today.
Perils of Conventional Banking
Banks act as intermediaries and they usually have a centralised data of all their clients relating to their balances and their transactions. The banks have their fair share of shortcomings when it comes to the way they carry out their day to day operations. Firstly, and most importantly, no centralised database is immune to hacking. There have been several attempts of hacking of bank databases and this poses a serious threat to the money and the identity of the customers of the banks. Most recently, in what is being called the biggest cyber hacking scandal in South Africa, around 33 million personal and professional records were hacked and published on an open website [1]. Secondly, running and operating a centralised database is costly. Thirdly, banks act as intermediaries and they charge transaction fees for transfer of funds and even holding the client’s own money. Not to mention the omnipresent risk of loss of money by the activity of hackers. Recently, a hacker group called Lazarus stole $60 million from the Far Eastern International Bank based in Taiwan. The same group had robbed Bangladesh’s central bank of a whopping $81 million last year [2].
Decentralising Data for Greater Security
One of the most distinctive features of the blockchain technology is that no data is stored in a centralised location or server. All records of all transactions are distributed to all the nodes in the network and once the transaction has been recorded, there is no chance for any person to manipulate the data. That’s what sets blockchain apart. It creates a trust-less (requiring no trust) network which is decentralised! Who would have thought that a decentralised database can be the most secure way of storing data? Also, a blockchain does not require a huge capital outlay like a traditional centralised database does, which banks use.
No Intermediaries Between Me and My Money!
It becomes increasingly clear that blockchain technology can entirely eliminate the need of not only banks, but all sorts of intermediaries involved in all sorts of transfers, be it capital or personal. Blockchain will also help in eliminating all the expenses that a client pays to the intermediaries; in this case, banks. When a migrant worker, for instance, sends money home to his country, intermediaries that facilitate such transfers take hefty fees from the amount remitted. Transaction fees for international remittances are around 9% on an average globally. It would become so much better for everybody if we would have less people to deal with and more money to spend. Blockchain is the way to go forward to bring this into reality.
A Blockchain-Powered Financial Ecosystem
LaLa World aims bring about a revolution in how people spend, save, send and lend money by empowering anyone and everyone who uses a smartphone and has an internet connection. At the heart of LaLa World’s financial ecosystem is the LaLa wallet which will enable people to buy and sell any sort of currency, be it cryptocurrency or fiat money, without the use of an intermediary. LaLa World is not an intermediary, rather, it provides a platform for people to make use of the blockchain technology to transact, transfer, and invest.
As discussed previously, there are more than 2 billion unbanked people in the world. These people do not have access to traditional banking due to numerous reasons. LaLa World would lead to their inclusion in the financial mainstream, in a seamless and transparent manner.
Parting Thoughts
All this is made possible by effectively using blockchain technology. LaLa World has envisioned a world where people need to spend the least and use the most of their hard-earned money. It sees an economy where there is simply no for intermediaries between people and their monies. All of it is made possible by smart application of a revolutionary technology for the benefit of the masses. LaLa World provides a wide array of products with the sole intention to bring as many people into the financial fold by making them deal with almost no intermediaries and incurring negligible cost as compared to what people are spending today. Blockchain technology is not restricted to a particular geographical location, nor is it limited to the income of the people. Its immense applications and benefits are what LaLa World envisions to apply in the real world for as many people to use as possible.
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