Why more people will use Blockchain-based payment platforms over banks in the future

Banks and Blockchain
Credit: PicJumbo

Blockchain technology-based payment platforms are being increasingly adopted by the financial services industry and are next in line to take over bank-based transactions.

On August 17, Bitcoin’s market capitalization has surpassed that of fintech giant PayPal, a feat achieved previously by the cryptocurrency market as a whole. Such huge growth, achieved through mass consumer adoption, is largely in thanks to the increased security, transaction speed, and convenience offered by Blockchain technology.

Blockchain

One of these payment platforms is the Swiss-based startup UTRUST, which is aiming to become the Paypal of the digital currency market. The company also intends to re-instill trust in online transactions by offering the first cryptocurrency payment platform in the world with built-in consumer protection mechanism.

This trusted platform is what the consumers need to embrace Blockchain technology for their day to day transactions.

According to UTRUST CEO, Nuno Correia, their goal is to democratize the cryptocurrency market and Blockchain technology so that all people can benefit from fast, transparent, and affordable transactions.

“UTRUST aims to create an infrastructure that provides the benefits of fast, secure, convenient, and inexpensive cryptocurrency transactions alongside the world’s first cryptocurrency payment protections. Our goal is to democratize the world of altcoins and Blockchain technology to ensure that anyone can benefit from instantaneous, transparent and cost-effective transactions, irrespective of where they live and level of education”.

Why Blockchain is ideal for the financial services sector and other industries

According to experts, the main selling point offered by Blockchain technology is the security it provides to the transactions that take place in its driven platforms.

Another advantage of Blockchain is the transparency of its transactions. Blockchain technology allows all the transactions and balances to be seen by all users on the network, making it virtually impossible to be manipulated or tampered with.

A decentralized protocol is the core of the blockchain and is one of its biggest advantages over today’s centralized alternatives.

Unlike banks, which can be hacked or robbed due to their use of a central storage for both data or assets, Blockchain-based platforms are almost impossible to infiltrate as it would require access to every computer system on the network simultaneously to succeed.

Banking industry’s efforts to adopt Blockchain technology

Understanding the potential of Blockchain technology, over 40 banks around the world are investing a huge amount of time and assets to incorporate the technology into their systems.

They believe that Blockchain’s capability to eliminate the middleman from the trading process will result in billions of dollars in savings. These funds that would usually be spent on clearinghouses and other verification processes can now be more efficiently invested in streamlining their  business structures and payment systems

This post is part of our contributor series. The views expressed are the author's own and not necessarily shared by TNW.

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