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What is blockchain technology?

The blockchain is a digital account statement, also called distributed ledger, for any transactions between computers that accurately captures every change, storing it decentralized and transparent across multiple machines. The data is chained block by block, including the timestamp, hence the name “blockchain”.

These transactions recorded in the digital account statement are verified by members of the network. Because all users have access to the same data, they can only be changed if everyone agrees. Thus, the information cannot be manipulated. There are already about 500 systems, but they have the following common features:

  • Elimination of all intermediaries. Central institutions (stock exchanges, banks, clearing houses) are replaced by a network of computers. The network checks the validity of transactions (stock exchange transactions, cash transfers) that are mapped in the account chains (blockchains).
  • Anonymity and confidentiality are guaranteed in the network by encryption.
  • High security, reliability and immutability of the documents are ensured by the concatenation of accounts and their distribution to all nodes in the network.

How blockchain works?

Source: Financial Times

Blockchain changes the world of mobile payments

  • Increased Security

    The blockchain technology focuses on not only being highly secure, but also preventing fraud, double-spending, and price gouging. Transactions must be recorded for on a tamper-proof distributed ledger block by block.

  • Instantly available in a safe environment

    By using blockchain technology payments will be instantly available in a safe environment. Money can be sent to anybody worldwide and in just some seconds people can access these funds on their smartphone.

  • Peer-to-peer Lending

    Peer-to-peer lending is one of the the fastest growing fintech industry. Low interest rates for borrowers and a solid return of invest for lenders. By using blockchain technology borrowers can use their mobile devices to secure a loan directly from a lender.

  • Remittances

    Cost of remittance across the world with traditional banks and financial institutions are high. By bypassing these institutions blockchain could allow mobile users to transfer money to anyone in the world and avoid expensive service and transaction fees.

  • Mobile Wallets

    Cash, checks and even plastic are becoming a thing of the past. Using mobile wallets is much more convenient and contemporary and blockchain technology will make using mobile wallets even more secure by providing special signature features to verify a purchase.

  • Rewards and Loyalty Programs

    Mobile phones have already proven to be an efficient platform for offering and managing reward programs. The blockchain has the potential to take this to next level. Since all transactions are recorded in the distributed ledger it is much more transparent how reward points are traded. This gives providers the opportunity to even better tailor their programs to the customer.

  • Getting access in third countries

    Access to bank accounts remains a major concern for millions of people in third countries. Individuals with a smartphone who currently do not have a bank account can use the blockchain technology. This enables them to participate in global eCommerce, securing loans or transferring money to friends or family securely and without expensive fees.