Why Blockchain Will Replace Traditional Payment Systems

This summer, people of Central Europe faced difficulties with servicing Mastercard payment cards, but as it turned out, the scope of the problem was much bigger than that.

All of a sudden, users of payment cards around the world could not execute financial operations and pay for goods and services with electronic money. This caused serious discomfort and considerably limited the possibilities of Mastercard users.

The news instantly broke all over the world, and the Internet exploded with angry comments. In a few hours, the system finally managed to restore the “almost usual” operation, and the following day official representatives of the company publicly apologized for the incident. But we cannot escape the fact that millions and maybe even hundreds of millions of Mastercard users became prisoners to these technical difficulties.

By the way, not long before that, users of another internationally popular payment system, Visa, had similar issues. Some say that technical failures of both Mastercard and Visa were a result of deliberate actions, but it does not change anything. Either way, the problem is still relevant since the functioning of these payment systems can be affected by attacking their centralized servers.

This precedent gave another reason to discuss the need to integrate alternative Blockchain-based payment systems into the real sector of economy. The main advantage of the distributed data ledger is absence of a centralized server, which automatically excludes the possibility of a similar incident. The decentralization of the banking system will provide clients with uninterrupted services and will facilitate the achievement of transparency in transactions and other commercial operations. Today, Blockchain is used with more than just crypto currencies. The possibilities of this technology are much broader, and the crypto community is slowly discovering them by developing more universal digital financial instruments and entire trading platforms.

For example, such crypto platforms as the Bitbon System eliminate the problems that are common to electronic and other payment systems. Thanks to the nodes distributed all over the world, the Bitbon System can provide each user with immediate and uninterrupted transactions 24/7. In light of recent events, such an advantage can become the factor determining the integration of crypto currencies into the global economy.

Besides, compared to the classic banking system, decentralized financial platforms do not charge high commissions for the use of their services. On the contrary, expenses on most Blockchain platforms are either minimal or absent altogether. Such indicators show that digital economy is a serious competitor to the traditional model of conducting commercial activity, which means that the economic system is evolving, and its complete digitalization is only a matter of time.