NetworkNewsWire Presents CryptoCurrencyWire Commentary: Blockchain technology has the potential to transform the way the global economy works.
- Blockchain is the basis of the first global currencies.
- It can be used to remove barriers to international trade.
- By keeping all records on a single platform, it speeds up financial transactions.
- Ten years after their creation, blockchain currencies can be used on high streets through ATMs and apps.
One of the companies making blockchain payment accessible is Virtual Crypto Technologies, Inc. (OTCQB: VRCP) (VRCP Profile), whose ATM and point-of-sale systems are user friendly and offer distinct advantages over their competitors. Lending facilitator LendingClub Corporation (NYSE: LC), which has already helped millions find the financing they need, is looking at ways to incorporate blockchain into its systems. Point-of-sale specialist Worldpay Inc. Class A (NYSE: WP) is also experimenting with the addition of blockchain to its integrated payment systems. Mobile payment company Square, Inc. (NYSE: SQ) is testing the integration of premier blockchain currency bitcoin into its technology. Broadridge Financial Solutions, Inc. (NYSE: BR) has followed a successful pilot with the acquisition of a patent for proxy voting and repurchase agreements based on blockchain technology.
Blockchain’s Potential for Financial Change
We live in a globalized economy, yet we don’t have the tools for efficient globalized trade. Fractured information systems create delays in the completion of transactions. Without transparent, readily available information on cargoes, national customs barriers introduce delays to the transfer of goods. Even the currency historically used as legal tender to buy and sell products is localized national currency that has to be exchanged for other currencies as it travels the globe.
Blockchain promises a solution to this. Beneath all the buzzwords, blockchain is a distributed ledger system that maintains open records in which every change is visible to all involved. This transparency provides several benefits, among the most significant being the ability to provide financial services faster and more efficiently. Blockchain also provides confirmations of transactions without the time period required by traditional financial institutions, creating a pathway to greater global economic growth. The transparency provided by blockchain also allows information to be available to everyone involved in a transaction, from the purchaser to the port authorities. And by creating international currencies, secured through the transparency of ownership records, blockchain is creating a new medium through which to trade all around the world. This could be the answer to the needs of international commerce.
Overcoming Barriers
The shift towards this better way of doing business is led by companies such as Virtual Crypto Technologies Inc. (OTCQB: VRCP). As a technology company using blockchain to provide payment solutions, Virtual Crypto’s work is all about smoothing out barriers that stand in the way of fast, efficient commerce.
For an example of the inefficiencies in traditional financial systems, look at the lack of immediacy in settling stock trades. Stock transactions can take less than a second to complete as people and computers forge agreements around the world. The prices listed on exchanges rise and fall in moments thanks to these near-instantaneous transactions.
But behind the scenes, the completion of such a deal can take days. For example, a company may initiate a financial transaction through a bank for payment to a manufacturer in China. Because each of the parties involved has individual ledgers, the transfer of funds can take days. Ledgers have to be compared and the ownership confirmed before anything can be transferred from one company or individual to another. Because there’s no single shared record, inefficiencies appear.
The same is true for everyday payments on the high street. As someone swipes a bank card on a payment machine, it seems as if a payment is being made instantly. But the bank statement shows that payments take days to process, as banks check their own records, compare notes and finally transfer the value.
Virtual Crypto Technologies is removing those inefficiencies. Blockchain payments can be processed in seconds because its machine learning algorithm that analyzes all the records are shared on a distributed ledger. Virtual Crypto’s payment system makes use of this to allow the reality, not just the appearance, of near-instantaneous payments.
Global Currency for Global Trade
The need for a global currency is increasingly recognized on a wide scale, and prominent figures such as the CEO of Twitter have spoken up for blockchain currencies as the answer. Though not all countries recognize blockchain cryptocurrencies, they are being used all over the world. People can buy and sell globally without having to go through banks. It’s something that Virtual Crypto wants to make more accessible.
Using old-fashioned fiat currencies can be messy when payments need to cross international borders. The range of currencies and their fluctuating exchange rates make it hard to be sure what a deal will be worth when it closes. The process of exchanging currencies incurs fees and delays, both for individuals and for businesses.
Blockchain currencies such as bitcoin offer an alternative. They are international rather than national currencies, developed for a globalized market.
Virtual Crypto provides customers with easy access to cryptocurrency, and thereby, to a world of international currency. Using the company’s technology, ordinary people and businesses can obtain bitcoin or turn it into their local currency.
At present, trading in and out of cryptocurrency still involves the market fluctuations that create uncertainty in traditional currency transactions. To mitigate this, Virtual Crypto’s system finds the best exchange rate at the time, reducing users’ costs. Currency bought in this way can then be used anywhere crypto is accepted, including as purchases from international vendors and in online gaming platforms.
Increasing Blockchain’s Accessibility
For crypto to be more widely usable, it needs to become part of everyday life; the biggest hindrance to the broader adoption of blockchain finance is accessibility. In the 10 years since they were first created, cryptocurrencies have mostly been limited to online transactions. Now Virtual Crypto is bringing it to the high street.
Virtual Crypto is making this possible through crypto ATMs and tablet-based payment systems. These allow customers to easily obtain cryptocurrency and then use it in participating stores. These formats also allow stores to accept instant, secure payments without the delays incurred by working through banking systems.
The global market for cryptocurrency ATMs is currently worth $14 million, but it is expected to pass $285 million in the next seven years. That staggering growth will be driven by the desire of consumers to use these new currencies. Virtual Crypto is poised to step in early and profit from that growth.
The company’s NetoBit ATM, recently demonstrated at the TechCrunch Tel Aviv event, is one of the most customer-friendly crypto ATMs. Many systems only use a single currency exchange, but NetoBit uses a wide range, providing customers with the best value for their money. The transaction is almost instantaneous, removing the delays in approval that often occur in crypto purchases.
And unlike many of its competitors, the NetoBit ATM lets users convert their cryptocurrency back into local currency, not just the other way around. By making it easier for people to obtain and use cryptocurrency, and for shops to take payments, Virtual Crypto is making a global currency solution accessible to all.
Bringing Forward Blockchain
The growing recognition of the power of blockchain has led a number of companies to explore its potential. Not all the companies using blockchain started out with this technology. Financial technology company LendingClub Corporation (NYSE: LC) was founded in 2007, a year before blockchain was announced. It aims to create financial opportunities for people across America by bringing together lenders and investors. Its innovative approach to finance has helped millions to grow small businesses and take control of their debts. The company is now looking to create a new wave of innovation, using blockchain to increase liquidity and better pair borrowers with the investment they need.
Worldpay Inc. Class A (NYSE: WP) is committed to creating simple payments through better point-of-sale solutions. This includes credit card processing, online payments and in-store payments. The company is looking to add blockchain to the payment types it supports in order to create another option for its seamless payment systems.
As a mobile payment provider, Square, Inc. (NYSE: SQ) is already at the forefront of flexible, accessible payment systems. Its sophisticated hardware and software allow merchants to turn their existing devices, including computers and phones, into point-of-sale tools. These merchants can take cashless payments without the need for tills or other specialist equipment. The company is now testing the integration of bitcoin into its systems, which led the company’s stock to soar after the news gained wide traction.
A financial technology firm with over $8 billion of market capitalization, Broadridge Financial Solutions, Inc. (NYSE: BR) is already a power player in the world of financial services. Now it is expanding its potential through the exploration of blockchain. Following a successful pilot in using blockchain, the company has acquired a patent for technology that will use blockchain in proxy voting and repurchase agreements. Blockchain’s use in smart contracts and instant payment processing makes it ideal for this sort of work, reducing risk, improving efficiency, and providing a better audit trail.
Across the world of finance, companies such Virtual Crypto Technologies and others, are leaping to embrace blockchain.
For more information on Virtual Crypto Technologies, please visit Virtual Crypto Technologies (OTCQB: VRCP)
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