Updated: Oct 3, 2019
In the last decade, Blockchain the underlying technology of Bitcoin has grown onto to become a revolution which is making the world a better digitalized society. Right from the aviation sector to the education system, technology has a substantial role to play in every about every industry sector.
But, now is the million dollar question can the Blockchain technology be trusted to bring safety and transparency in the world's financial setup? Can Bitcoin become an alternative to hard cash?
These questions are being answered by top global financial giants, one is the MasterCard, and the other one is Square.
MasterCard to Declare a Strategic Partnership with R3
One of the world most renewed financial innovators, MasterCard has entered into a Blockchain venture by collaboration with R3, an enterprise Blockchain technology company. With headquarters in New York, R3, since its establishment in the year 2014, is working in association with companies across industries, right finance, healthcare, trade to insurance with the prospect of empowering them with the Blockchain technology.
MasterCard and R3 are collaborating on a venture which is to build a safe and secure cross-border payment platform. The advanced Blockchain-powered system will connect with diverse banks supported by MasterCard to ensure faster and safe transactions.
What the CEO of R3 has to Say on This?
CEO David Rutter said in a press release "All institutions -- large or small -- rely on the ability to send and receive payments, but all too often the technology they rely upon is cumbersome and expensive."
MasterCard executive Peter Klein said "Developing a new and better cross-border B2B [business-to-business] payments solution by improving worldwide connectivity in the account-to-account space is central to MasterCard's ambition,"
MasterCard will manage the international payments-process, clear, and settle-done over this financial network. R3, on the other hand, will do the merger of its Corda Enterprise Blockchain platform with the payment infrastructure of MasterCard.
R3 further says "more than 300 of the world's leading financial services firms, technology companies, central banks, regulators, and trade associations" have already joined its Corda ecosystem.
Rutter added, "Corda was designed specifically for enterprise use cases such as this, and we look forward to supporting Mastercard in bringing blockchain-enabled payments to businesses across the globe."
Blockchain Data Cannot Be Altered
Unlike, banking ledgers, once added the transaction could not be unverified from the Blockchain database, as it is unchangeable. This is one of the most influencing reasons that Blockchain technology is safe and secure since no one, even the most trained hackers can't amend the data once stored.
Though, this nature of this cryptocurrency is criticized, that what will happen in case of errors in storing the data, the security comes first. The transaction information of the Blockchain ledger is transparent to view for the user.
Cuts Out the Middleman
Being a peer-to-peer system means the transaction take place directly between the seller and the buyer; there is no middleman administering the transactions. This two-party transaction could prove to be a game-changing model in the coming years, solidifying the global economy. To better understand, you can send money to friends or relatives located in a different territory or through a business deal, paying no transaction fees or pretty low compared to PayPal and credit cards.
Chris Dunn from the Skill Incubator has nodded that emergence of decentralized currencies is exciting since it will eliminate the middleman like the eBay or the Amazon. In the April month of 2016, OpenBazar unveiled the concept of 0 percent transaction fees to trade products by accepting Bitcoins. And, with the Japanese trading market on the surge, decentralized currencies in the Asian market is bound to reduce friction with international e-commerce.
This advanced technology will get rid of realtors, lawyer, and the banks to transfer a house deed. This, in turn, can save a lot of fees money, also speed up this process from some days to one or two hours.
Now, Settle Transactions in Minutes
Thanks to the Blockchain technology, now you can send and receive cash in the form of cryptocurrency from around the globe within a few minutes. No waiting for the sender and receiver banks to approve the transaction and release the money. That's why Blockchain technology is safe, and the hackers won't get enough time to implement a sin, compared to banks, which presents a mine of possibilities.
What's more, receiving your business signed contract or vehicle title in a matter of a few hours? No matter the kind of transaction is, Blockchain, the nucleus of decentralized currency will allow you to settle monetary transaction quickly, in contrast waiting for some days and weeks.
Prevents Payment Scams
One of the most talked-about reasons for incorporating Blockchain technology into our society is, how it prevents payment scams. Since the mode of transactional communication is direct between the buyer and the seller party, the possibility of fraud is on the lower side.
Other reason payment scams will hit rock bottom with the rise of cryptocurrency, is that once the transaction is verified and added to the Blockchain ledger. Then, those cryptocurrency coins cannot be reused for any further transaction, so the popular problem with hard cash like double spending and counterfeit will stay at bay.
Moreover, there is no possibility that companies or smart-minded individual can "cook the books." Again, since the recording of the transaction is permanent, the coins cannot be reused, the price gouging is a mere a slight possibility, as it would thwart intellectual property by being shared publicly on the Blockchain.
Square To Boost Its Crypto Team As They Seek Out For Bitcoin Coders
Square is investing in human resources and big funds to develop a Bitcoin ecosystem. To accomplish this venture, they have formed a team of Crypto developers with practical industry experience and expertise to strengthen their financial network.
On September the 19th, Square in a public statement that has got on board three crypto experts- Arik Sosman, Valentine Wallace, and Jeffrey Czyz.
Wallace has a wealth of experience during his days at Lighting Labs, a company which is focused on delivering tailored, small-scale Crypto solutions.
Czyz has experience of working at Google, while Arik has worked on Facebook's Libra digital currency project.
"In the spirit of open-sourcing, we want to hear from you," the Square said on Twitter. "There's no project we won't consider, as long as it improves or proliferates Bitcoin."