Cryptocurrency is Transforming the Financial Ecosystem
4 min readTable of Contents
In the past several years, the payment industry has undergone a transformation. The world of international trade is developing quicker than ever, from blockchain and FinTech to AI and cryptocurrency.
A mobile device or a computer will influence the entire payment business of the future. It takes place both at home and on the move. Customers want more from their platforms than ever before. Cryptocurrency is becoming a popular payment option among a wide variety of customers, from those looking to buy concert tickets to bettors looking to stake on NBA Parlay Picks.
eCommerce generated around $3.53 trillion in sales in 2019, up from $2.92 trillion in 2018. Global eCommerce is predicted to reach $5.69 trillion by 2023. Compared to 2018, this equates to a 61% increase. The digital economy is expanding, and organizations that can remain ahead of the curve are bound to have a bright future.
The History
In 1983, an American cryptographer, David Chaum, created the first electronic money, which was known as e-cash at the time. In later years, it was renamed Digi-cash and introduced as the primary form of cryptographic exchange, requiring users to download and install specific software to withdraw cash from a bank and denominate certain encrypted keys before sending the cash to the intended recipient, making Digi-cash virtually untraceable.
Satoshi Nakamoto, the legendary creator of the Bitcoin cryptocurrency and the blockchain database, exposed the world to the first decentralized cryptocurrency in 2009. Its job objective necessitated the employment of the cryptographic hash algorithm SHA-256.
Later, in 2011, when Litecoin (another cryptocurrency) entered the market, Peercoin switched to a hybrid work scheme in place of the SHA-256 work scheme used before. The cryptocurrency was approved by the Treasury of the United Kingdom in 2014.
Cryptocurrency is, at least ideally, intended to be used as a means of exchange. It functions as a ledger in a database, with transaction records secured by powerful cryptographic methods, as described above.
The Present & The Foreseeable Future
Customers prefer to use their mobile phones or tablets to make transactions. By 2021, mobile devices will account for 72% of all E-commerce purchases.
This is significant for many reasons. First and foremost, purchases may be made from the comfort of one’s own home or while traveling. You may now order that pair of running shoes while waiting in line for a pizza, unlike at any other moment in history.
Sales may occur at any time. This leads us to the second point: stores may operate 24 hours a day. Even if the actual shoe shop is closed, your online purchase may still be fulfilled at any time and from any location.
While commerce has evolved swiftly, online and physical payments seem to have remained quite constant. The majority of purchases are made through conventional methods such as credit and debit cards. While this has served as a suitable trade means for many years, new technologies are opening up new payment choices.
Bitcoin Offers Greater Flexibility
Bitcoin and other virtual assets are strong financial instruments that can transfer money in an irreversible manner. Customers and merchants can transact without having to go through banks since the cryptocurrencies operate on a decentralized system available anywhere and everywhere simultaneously.
On the other hand, since most blockchain-related payments are still in infancy, their adoption is now picking up. For the crypto payments sector to accelerate, innovation will be required at that point.
A cryptocurrency is a digital asset that is stored on a blockchain, which is a distributed ledger. Because the blockchain cannot be tampered with, finances, goods and services may be exchanged with confidence and trust. This improves openness and lowers the risk of fraud.
It’s no surprise that cryptocurrency payments are becoming increasingly popular among retailers and customers as a more cost-effective and efficient payment option. As a result, major online retailers have already begun accepting cryptocurrency payments.
Cryptocurrency Payment Methods on the Rise
There are several payment networks now established that accept a variety of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH) and PG/VAN-based services, as well as internationally accessible credit cards. This solution platform enables quick and simple online and offline payments, secure cryptocurrency storage, trading and real-time market data.
With an all-in-one blockchain-based cryptocurrency payment platform, these businesses hope to disrupt the conventional payment infrastructure. They provide multi-cryptocurrency wallets available anytime, anywhere on your laptop, desktop, or mobile devices, combining usability with transparency, speedy payment, and security.
Cryptocurrency payments have the potential to foster a more borderless and globalized economy while also combating financial inequality by providing rapid and safe financial services to those who do not have access to a bank. This is a massive triumph for everyone involved in payments, both online and offline.
