Blockchain is a technology which was invented around 2008 to empower Bitcoin and other cryptocurrencies. The cryptocurrencies are controlled and managed by blockchain for the transaction to take place. That means if you own a cryptocurrency, you will have a private key or password to its address on the blockchain.
What is Blockchain?
For you to understand it better let me explain by example. Let’s take for example you subscribe to DECOIN and you want to make transactions. Remember DECOIN is connected to blockchain. Therefore, if you are selling or buying currency using DECOIN your transactions will be known to the public through blockchain but your identity will remain hidden. From this example, we can conclude that blockchain is an online system that manages cryptocurrencies such as BITCOIN, DECOIN just to mention a few. The advantage of blockchain is that it makes information widely known to the public.
How blockchain works
Blockchain is a system that makes online transactions possible. It looks complicated but if you understand how it works it becomes simple and easy. To understand how blockchain works you need to understand the works of cryptocurrencies. The business that is done on cryptocurrencies is the buying and selling currencies. Let’s take that you are in USA but you want European currency. Simply you can just go at any cryptocurrency either BITCOIN or DECOIN and post the amount of currency that you want. Since Cryptocurrencies are controlled and managed by blockchain, therefore blockchain will make your information widely known and find the person who you can exchange with your currencies through online transaction. But the question is how does the payments going to happen on blockchain. The following section explain blockchain payments trends for 2018.
Blockchain Payments trends for 2018
Since blockchain is technological oriented it has different ways of payment that suit the change in technology. Blockchain payments have stepped away from the existing payment structures and provides the innovative nature of technological payments. Looking at where we are coming from 45 years ago, the world of payments has evolved from cash to online payments.
The following are blockchain payments trends for 2018
1. Peer- to- peer Payments
In 2018 blockchain payment processes is integrated into peer to peer (P2P) systems. For example, whatsapp users can agree to make payments online through whatsapp chat. Apple is also establishing this feature with Apple Pay Cash. This payment method has been used since the beginning of cryptocurrencies.
2. Decentralization through Blockchain Technologies
The technological basis of blockchain will speedy the creation of great innovative financial solution. Organizations and companies will use blockchain technology to implement direct connections, therefore removing the need for intermediary or correspondence banks.
3. Cross-Border Payments for Mainstream Users
It is expected that in 2018 blockchain payments might go mainstream through companies like IBM that want to use blockchain technology to send payments across borders.
4. Through Banks
In 2018 the financial world is adopting blockchain technology for payments processing and trading functions. The immediate benefits that blockchain brings attract the traditional banks. Therefore, in 2018 blockchain payments are also be done through banks.
Fern Williams is our contributor and writer of this article. He is a famous blogger on cryptocurrency topics. He is also a blockchain architect. Fern works at the bitcoin trading platform as advisor.