Blockchain technology and its potential with payment systems
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Blockchain technology, some people coin it as the fourth industrial revolution along with AI and metaverse. It is a technology that promotes clear transparency among people when it comes to accounting. But the real question arises, if it’s such a brilliant technology, why isn’t it in full swing yet?
Although blockchain is being explored in several sectors across the globe. And yet it is not in full motion. What could be possible reasons for such an argument, is it a lack of support for technology or a political aspect to it? We will see in this article what are the core challenges for Blockchain not being fully committed to payment systems yet.
Volatility
The nature of blockchains has been witnessed by everyone around the world all over the world, it is extremely volatile. One is always hesitant when having an option for transactions in Crypto, but when there is already a stable option for trades that are cash, why would anyone be willing to go for crypto or blockchain for example.
Although there was stability in cryptocurrencies, it is a much better form than cash or liquid flow, it is more optimized digitally, without such storage problems and no security problems. Ultimately, if there was no problem with volatility, it would have been in the mainstream.
Scalability
The biggest obstacle with blockchains is that when the traffic is high on the blockchain, it results in the chain slowing down, thus reducing the processing speed and resulting in higher transaction fees, which would not be possible at all for just one in the community, who would be more expensive and time-consuming than the traditional economic methods.
The only ways that this kind of situation can be tackled is by investing in the infrastructure of the blockchains, which will result in more efficient networks with access to more blockchain has to offer.
Regulation
There are a ton of legal hurdles that will come along the way as it is associated with cryptocurrencies which will ultimately result in a legal quandary. And getting everyone up to date with the technology would be a big challenge. mass yet.
Educating people more about it would be a way to get it more into regulation among people, which would ultimately result in more investment as more people have more knowledge about it and will be able to communicate on the same level when it is necessary.
Future potential
Blockchain technology is still in the exploratory stages in all sectors, there are advances daily and on a very large scale which shows how much there is still to offer from blockchain and the kind of promise it holds. The versatility of blockchain is one that surprises even us to date, and it will continue to amaze us until the day it is fully developed.
It can be said that there is a possibility for Blockchain to be used as a payment system in the near future, but there will be certain obstacles that will make it a tough process to overcome. But once it gets off the ground, it has the potential to revolutionize the financial services industry.
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