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The evolution of digital payments: the blockchain is the key

 The evolution of digital payments: the blockchain is the key

The evolution of digital payments: the blockchain is the key

      The payments industry was already moving towards the digitization scale.  The COVID-19 pandemic has only increased demand.

      Digital payments are expected to increase by more than 80% by 2025.

      The key will be in blockchain technology, which can support all kinds of currencies, both digital and fiat currencies.

  We cannot deny that cash can be king, but digital payments are constantly evolving and blockchain is the key.  A revolution begins to bring about drastic changes.

  The digital payments industry has already been on an upward trend, but the COVID-19 pandemic has only accelerated the process as demand increases;  The reason is quite simple, consumers needed new ways to pay with less contact with others.

  According to certain reports, digital payment volumes are expected to grow by more than 80% between 2020 and 2025, from 1 trillion transactions to 1.9 trillion transactions and almost three times to 3 trillion by 2030.

  When did the development of digital payments begin?

  It can be said that the first was Western Union in the movement of digital remittances.  The company started with Electronic Funds Transfer (EFT) in 1871. This was a great solution for those who needed to send money on a large scale.  When the 20th century began, the Federal Reserve began transferring money using telegrams, and wire transfers became Western Union's core business.

  But the company did not stop here.  They continued to evolve, especially in 1914 when he introduced freight calculations.  These accounts were linked to customer cards that could be used to purchase items on credit.

  The credit card was the start of the industry, allowing users to get paid to make purchases, but with the obligation to pay off the balances in full in a certain period of time.

  Web 2.0

  The creation of Web 2.0 laid the foundations for unusually large advances in electronic payment systems.  It was also a huge step forward in introducing merchants to become a part of what we know today as e-commerce.  For example, Amazon, one of the leading companies, was founded in 1994.

  E-commerce provides faster and more efficient ways to conduct cardless transactions, which has led to the introduction of electronic verification systems;  It allowed consumers to verify and authorize digital payments from various channels.

  It wasn't long before mobile devices became another popular form of payment;  Which allows the consumer to pay for goods and services with the click of a button in mobile wallets such as Google Pay or Apple Pay.

  After this point, e-wallets have shown that they are capable of integrating encryption, biometrics, tokenization, and device authentication, making the list very high.

  What is the key to the future?

  According to the World Economic Forum, it is expected that by 2025, approximately 10% of global GDP will use or be associated with blockchain technology.  Blockchain is a decentralized digital ledger that facilitates the process of recording transactions, as well as keeping track of assets on the network.

  It is a system that records information in such a way that it is virtually impossible to hack or deceive the system.  In this way, the global payments network based on the blockchain will be a decentralized system that will facilitate payments, including clearing and settlement of all currency transactions (paper and digital) in a single network.

  The global payments network based on the blockchain will be very useful.  The first thing we must emphasize is that a network like this will not be restricted by geographical boundaries;  It can exist anywhere and everywhere, all that is needed is access to the Internet.

  The only thing we need to be able to manage our data and money is the private key.  Thanks to this password, we can perform a transaction from anywhere in the world.  In addition, another advantage of this payment network is the ability to settle and settle transactions.

  The amazing thing about the global payments network based on the blockchain is the possibility to support all kinds of fiat and digital currencies.

  These networks will stick to the phrase "time is money".  The time it takes to transfer money through a network like this can translate to a few minutes.

  But perhaps the biggest benefit is the network transparency behind all transactions.  Thanks to the use of a decentralized ledger that is validated by multiple parties, all transactions and exchange rates between currencies are immutable once agreed upon.

  the future

  The evolution of technology and constant change will affect the global economy.  Many companies may choose to be cautious and not venture into the blockchain space.  While others may decide to innovate in the space to revolutionize the industry.

  BAXE, for example, is a peer-to-peer integrated communications and exchange platform that uses distributed ledger technology (DLT) and the innovation behind blockchain technology to create a ready-to-use dApp.  It marks the beginning of a new paradigm for integrated payment systems.

  Its dApp combines banking functionality with advanced high-level communication channels.  It brings each of these functions into an easy-to-use space with an interface that is accessible to everyone.

  With the blockchain facing the digital payments revolution, the transformation of the industry is only a matter of time.