Decentralized Applications Enabling Cross- Border Payment Faster and Secure
In the techno-world, there are millions of software applications currently in use, and most of them being the web software applications which follow a centralized server-client model. Some are distributed, and a proportion of them are decentralized.
Now, many of you might be pondering over what are the decentralized applications? How decentralized system different from the distributed one?
Before heading off to know about the decentralized application, let’s understand what the centralized systems are?
Centralized systems are presently the most widespread model for software applications with the operation of the individual units and flow of information from a single center.
Popular web applications like Facebook, Amazon, Google, etc., used mainstream service we use on the Internet using this model.
In a Decentralized system, there is no node (computer) directing any other node as to what to do. A lot of Stacks such as Google have embraced a distributed architecture internally to speed up computing and data latency.
zThe dApp space is currently an emerging field in making cross-border payments more secure and faster. Deployment in the payment industry is bringing changes in the current system that is suffering from certain shortcomings. Like the inability to cater to the unbanked population, non-fixation of exchange rate until the arrival of funds, the involvement of multiple financial institutions in real time, causing delays and inaccuracy in addition to accompanying fees or charges at each stage of the transaction.
Let’s see how dApp are bringing change:
1. Secured and Easy: The Banks will no longer need any cumbersome clearing and settlement systems. While the companies will be able to have a real-time accounting ledger in their enterprise resource planning (ERP) or treasury management systems. Thereby adding security features to the system.
2. Faster: Its reconciliation with the distributed ledger makes it possible to connect all the entities in a financial trade in real time. For faster processing of payment while maintaining an audit trail.
Thus, the parties involved in the financial trade would no longer need to depend on bank statements to reconcile their accounting ledgers.
Decentralized payments, along with the general operation of clearing of mutual claims of economic organizations are one of the means of substituting non-cash operations for cash payments. Thereby bringing up instant payments that will impact not only big businesses but also help small businesses to manage liquidity far more effectively.
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