Will Blockchain Payment Systems be able to replace Credit Cards By 2022?
Blockchain technology is about to transform the way we perform our payment transactions. In addition to this, it is also causing disruption in international business transactions across the globe. This is why there has been a rise in the demand for blockchain-powered services in the last few years. Also, we can expect more hiring of individuals with blockchain engineer certification in the financial sector.
Currently, credit cards are highly in use by regular people as well as businesses to perform global transactions. However, with its ease of use, security, and transparency, blockchain technology is all set to replace credit cards. So let us explore how exactly blockchain can take the place of credit cards.
Table of contents
- Unlike credit cards, the blockchain always takes the user’s permission for performing payment transactions
- Blockchain offers robust security for payment transactions
- No authority can seize, block or stop blockchain payments
- Blockchain technology is the most efficient alternative for peer to peer transactions
- Closing Thoughts
Unlike credit cards, the blockchain always takes uses-permission for performing payment transactions.
One of the essential facts that makes credit cards and blockchain work differently as a payment system is that blockchain needs your full consent before making any transaction. It implies that you will be the sole in charge of choosing how, when, and under what conditions blockchain can transact your money.
In addition, when a user makes a payment transaction through blockchain, it charges less than 1% as a transaction cost, which is much less than the transaction fee that credit cards charge.
Also, blockchain makes it possible for users to enjoy low processing fees for even high-value purchases. Hence it is a better option for businesses seeking payment systems they can leverage under a nominal purchase value.
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Blockchain offers robust security for payment transactions.
Blockchain payment platform eliminates the requirement of any intermediaries and third parties to carry out its task. Unlike credit card transactions, the technology uses its inbuilt mechanism to perform secure payment transactions throughout its network. Also, it enables full transparency in its processes by adding transaction data over a public ledger.
Further, it implies that a merchant or individual needs to share their receiving address for you to initiate a payment. Also, without private keys, technology cannot take out funds from any user’s account; hence the receiver or merchant cannot access your funds unless you allow them to.
Easy sign-up process in blockchain payment platforms
We are already aware that the process of getting a new credit card or opening a new account needs a time-consuming verification which is often unnecessarily lengthy and involves lots of documents.
On the other hand, in blockchain-based services, you only need to download the cryptocurrency exchange application on your smartphone, sign up and process your transaction instantly.
No authority can seize, block or stop blockchain payments.
No third party can block or seize your balances over a blockchain platform, while this practice is quite usual in credit card transactions. It is so because the majority of credit card companies are not compliant with legal abidance and laws.
Blockchain operates with decentralization which refers to a democratic system where no single individual or group, or center authority has control over transactions. Every user can get access to all kinds of financial services over the blockchain network without any censorship.
So there is no risk of seizing your assets and balances, and your account remains free from vulnerabilities. However, if you want to learn more about decentralization and other mechanisms of blockchain, then you must opt for a reputable blockchain professional program.
Blockchain technology is the most efficient alternative for peer to peer transactions.
Being able to perform peer-to-peer transactions makes the blockchain better than credit cards. This mechanism involves the individual and the merchant to process the task. On the other hand cross payment transactions are a big issue with credit cards. However, blockchain allows you to use the exact wallet to make payments for different merchant bills, be it a phone bill or a shopping bill.
Ultimately we can say that blockchain-based payment services are more impressive and efficient in comparison to credit cards. Furthermore, blockchain technology intends to blend the advantages of simplified money transactions with the help of digital platform facilities. Moreover, blockchain has promising potential to provide safe transfers as well as manage massive data.
Additionally, businesses get to perform quick transactions without any high charges or verification requirements that other financial institutions and payment systems require.
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