Since the 2008 economic recession, the financial industry has been unexpectedly shaken and faced with several challenges concerning trust, reliability, and value. Traditional banking is now deemed outdated and somewhat unreliable as consumers and businesses are seeking alternative options for their transactions and assets.
As a result, blockchain technology and cryptocurrencies have disrupted the industry entirely. It has completely transformed the business of large financial institutions, retailers, and international businesses, changing the way payments are conducted and fulfilled.
Cryptocurrencies vs Big Banks
The World Economic Forum estimates that 10% of global GDP will be stored using blockchain by 2027. Most of this will be captured within cryptocurrencies. Blockchain’s most famous feature, cryptocurrencies have emerged as a mysterious powerhouse that has left regulators, large institutions, and consumers all intrigued and confused. Cryptocurrencies are digital assets built to operate as conventional currency but with the benefits of blockchain such as decentralization and a public ledger. Unlike traditional currencies, cryptocurrencies enable transactions to be quick, secure, and global. It also maintains and increases value over time without influence from major players in politics and capitalism. With the overwhelming popularity of cryptocurrencies, financial institutes have been forced to change their attitudes and behavior towards this new technology, seeing blockchain as a necessity rather than a choice. Blockchain is revolutionizing the world of payments by fulfilling the bank’s desire for faster processing, more detailed audit information and higher levels of security for increased efficiency and customer satisfaction.
Prague, Czech Republic – June, 2019: Dash coin sticking out of leather wallet o blue background. Digital currency, block chain market.
Despite ruling the online world, cryptocurrencies have barely been used for everyday payments and purchasing due to a few complications with regulation and trust. Many startups have entered the scene of financial payments to ease and condense the complex process with advanced technology. For example, Forest is an open source blockchain platform specially developed for high-speed private payment. This platform integrates a large number of latest technologies in the field of blockchain technically. As an increasing number of individuals are embracing previously offline activities (online chatting, online banking, even online shopping), we see the attitude towards online transactions change as well. By combining MimbleWimble privacy protection technology, high-speed asynchronous ledger technology based on DAG, anti-ASIC mining work algorithm based on Equihash and lightning payment network technology, Forest has created a highly secured system that clients would be happy to use. In an age filled with automation and technology, Forest is adapting to its environment and changing the way consumers conduct payments.
The main objective of a payment ecosystem is to use a decentralized network to enhance payments and financial settlement. The need for secure, rapid, private, and affordable payment transactions are global problems being addressed not only by legacy banking systems but also by many new approaches and technologies.