Since the 2008 economic downturn, the financial industry has been shaken unexpectedly and has faced a number of challenges related to trust, reliability and value. Traditional banking is now considered outdated and unreliable as consumers and businesses seek alternative options for their transactions and assets.
As a result, blockchain technology and cryptocurrencies have completely changed the business of large financial institutions, retailers and international businesses, changing the way payments are made and processed.
Cryptocurrencies are digital assets created to operate as a typical currency but with the benefits of blockchain, such as decentralization and his public accounting book. Unlike traditional currencies, cryptocurrencies allow transactions are fast, secure and global. It also maintains and increases value over time without the influence of major actors in politics and capitalism.
Many startups have entered the world of financial payments in an effort to facilitate and condense the complex process with advanced technology. For example, Velvet is a blockchain-based real estate platform, which creates efficient and frictionless transaction processes for essential purchases.
Velvet CEO Alexander Zelinsky believes that:
"As an increasing number of people engage in activities that were previously not online (online chat, online banking, and even online shopping), we also see that the attitude toward online transactions changes."
In an era filled with automation and technology, Velvet is adapting to its environment and changing the way consumers make payments.
Traxalt is a platform based on the Stellar blockchain which provides decentralized tools for those companies that want to create a transparent and efficient ecosystem by offering massive or small cross-border payments. Traxalt is revolutionizing the world of payments by satisfying banks' desire for faster processing, more detailed audit information, and higher levels of security for greater efficiency and customer satisfaction.
This platform can make large-scale payments (up to 5,000 in a single transaction) with around 30% less fees than what you would pay in a bank.
For larger companies, it can be difficult to financially track numerous businesses and business accounts. Fortunately, blockchain can speed up the accounts payable and receivable process with its immediate ledger update and information accuracy, especially for insurance companies and providers like Allstate and Aflac that are already starting to use the technology.
Blockchain can also store private customer information that cannot be tampered with unless all participants in the chain approve the modification, creating an additional level of security. Due to these operational benefits, large institutions such as Mastercard and Visa have been implementing blockchain in its data storage, cross-border transactions and payment system.
With the overwhelming popularity of cryptocurrencies, financial institutions have been forced to change their attitudes and behaviors towards this new technology, seeing blockchain as a necessity rather than a choice.
