Blockchain As A Solution For International Payment Barriers.
Non crypto native individuals have often regarded blockchain with skepticism. The negative inference of a “digital money”, or “money you can’t see or touch” has made a lot of people less willing to understand or engage in crypto activities. But for those who are actively involved in crypto and web3, these negative assumptions have no influence on their activities. They know that the aphysical nature of the currency hinders neither the operability, nor scalability of any blockchain. And as a result of the Fear, Uncertainty and Doubt (FUD) peddled by experts of blockchain-threatened industries, the large scale adoption of blockchain technology is still yet to be attained.
In spite of all these, the blockchain technology has proven itself to be a highly reliable means of conducting transactions, not just as a faster, but relatively cheaper and safer medium, hence, proving itself to be a viable option for international payment solution.
International Payment Barriers: A freelancer’s perspective.
“Professional freelancers would agree with me that getting paid by international client’s, while using local banks or traditional payment apps can be stressful. Sometimes, banks could delay payments. Other times, clients may have alternative payment apps which may not be available to the freelancer, or the exchange value after pay could be badly affected by insane exchange rates. All these have been worries, as sometimes, unsuspecting freelancers are scammed off their earnings, while looking for better exchange rates. However, since I began working in web3, and get paid in crypto, most payments have been in a matter of minutes from my employers wallet to mine. It is perfect.” — anonymous freelance writer.
Finding convenient payment methods can be difficult for freelancers who work with international clients. Traditional international payment methods (such as mobile payment apps, local banks, etc) are never as smooth as promised. Take for instance, a freelancer who lives in Africa and has to provide details for payment from an international client who lives in Asia. Typically, the freelancer has to worry about things such as;
a. Exchange rates,
b. Reliable payment platforms,
c. Available credential requirements to set up account on the payment platform,
d. Platforms’ transaction processing time,
e. Scammers, and several more.
For most in the freelancing sector, resorting to lengthy and cumbersome means to receive international payments has been a norm. The industry has had to struggle with this absence of a simple and reliable payment option for decades, until not too long ago.
Blockchain As A Solution.
While financial industry experts may define the blockchain as a ledger that is distributed across a variety of hosts, Investopedia defines it as a digital database, or ledger, (or blocks) that is distributed among the nodes of a peer to peer network.
Ledgers (or blocks) are connected over a peer to peer network (green hub). This networks gives the blocks ability to read each others data. By default, each block is built to house data such as signals, on-chain data (such as metadata, transaction history/activities, wallets, etc), and a variety of other possible information. These blocks also have the ability to share information amongst themselves, in a matter of seconds, or minutes, at a very low (usually tokens) cost. This means that the connected blocks form their own network for data sharing, and the activities on the network (such as transactions, commands, requests, etc) are conducted within and overseen by the blockchain (network of blocks) itself.
Since a block can contain and send any information to any other block on the network, sending a “digital equivalent” of money (in fiat fees) as an “exchangeable” information to another user seems like a good idea. How?
Making Payments And Transactions.
As every blockchain must have its own tokens tradable on centralized exchanges, making payments using such tokens would significantly reduce delay time during financial transactions.
The digital equivalent (of the payment to be made, can be done) of a blockchain’s currency, (the cryptocurrency) can be sent between blocks of that network, as data as well. And since this sharing of data occurs within minutes, large amount of money, which should typically attract a cumbersome claiming process, can be completed within minutes. This is the idea behind utilizing blockchain technology as the payment solution it has the capacity to be.
With cryptocurrencies as a payment option for our cited freelancer, the aforementioned troubles are instantly eliminated. The freelancer now only has to accept this “exchangeable information” (cryptocurrency), and go on to exchange the information for the monetary value in his local currency. All these within minutes, as opposed to the usual brouhaha and difficulty with finding reliable financial platforms, account creation requirements, exchange rate differences, etcetera.
And as a trustless system, the absence of human factor of truth, makes the blockchain even more reliable for international payment solutions. The ease, competence, and reliability of blockchain technology gives us more reason to be optimistic about its potential.
Of course, just as is with traditional financial institutions, there are security measures to take when using cryptocurrencies as a payment option. In fact, knowledge of the crypto ecosystem is paramount. This enables you to know which currencies to accept (as a service provider), and which chains to invest (rather than traditional saving- as an employer) your portfolio into.
Conclusion.
As a new technology, blockchain and crypto is still expanding. Everyday, the ecosystem takes a step toward improving its efficiency and upscaling the service available for its users. Concepts such as volatility, portfolio management and distribution, as well as market analysis and blockchain security are also being discussed regularly so as to help younger crypto natives understand how to manage their finances, while developing alongside the technology.
There is an entire universe waiting on the blockchain. Opportunities as to what can be done, solutions it could birth, and services it could provide continue to grow consistently. And several industries can already feel its influence. Sectors such as gaming, music, fashion, etc have began to adapt to the NFT-centric startups within their industry.
Bulls or bears, builders keep building. And as a “product for the future” blockchain is here to stay. Hence, users and contributors need to ensure the safety of their ecosystem.
Let’s keep building!
