Blockchain Takes Center Stage in Payment Processing Revolution

NEW YORK, February 28, 2018 /PRNewswire/ --

NetworkNewsWire Editorial Coverage 

Change is coming in the financial sector. The desire for faster payments and better audit trails is leading companies away from traditional payment systems and toward innovation. Blockchain technology is increasingly relevant in this area, with companies such as Global Payout, Inc. (OTC: GOHE) (GOHE Profile) applying the technology to improve payment processing and logistics in the financial sector. Mastercard, Inc. (NYSE: MA), one of the biggest players in payment processing, has obtained patents to develop its own blockchain systems. Glance Technologies, Inc. (GLNNF: GLNNF) (CSE: GET), which specializes in payment solutions for customers, has partnered with Netcoins Inc. to integrate blockchain-based cryptocurrency payments into its systems. Import/export payments can now be processed through blockchain smart contracts, thanks to LongFin Corp. (NASDAQ: LFIN). Unsurprisingly, given all these developments, direct banking and payments company Discover Financial Services (NYSE: DFS) has identified blockchain as one of the most important technologies for the future of payment.

Why Blockchain?

Blockchain technology is shaking up the financial sector in big ways. Its decentralized ledger system is the power behind cryptocurrencies such as bitcoin, which continue to rise in value despite setbacks early this year. Analysts at the World Economic Forum predict that 10% of GDP will be stored using blockchain by 2025. But this isn't based just on the rise of cryptocurrencies. It comes from the far wider applications of blockchain for financial processes.

Blockchain is a distributed ledger, a system of record keeping without a central controller, in which older parts of the record cannot be deleted or amended. This allows records to be kept across a network of users without the need for a central controller, who could provide a single point of failure and vulnerability to fraud. The lack of central processing improves efficiency. Financial transactions can be carried out directly between people in the network, removing third parties and delays. It's a processing system that can be applied not just to cryptocurrencies but to interactions in other currencies. As a result, major banks and technology companies are getting in on developing blockchain financial technology.