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Cryptocurrencies like bitcoin and litecoin have changed the perception of money. The virtual currency bitcoin is the wisest application of blockchain today. Blockchain and bitcoin might be related, but they are distinct. The existence of bitcoin is due to the blockchain, and it is considered as the underlying technology of blockchain. It redefines the transactional processes by accompanying the relationships between individuals, companies, and governing bodies. Though the cryptocurrencies are considered as trading assets, it is also showing proven potential in the sectors like finance, housing, and energy with the support of blockchain technology. Numerous factors influence the cost of bank-to-bank money transfers such as expensive transaction charges, geographical limits, and uncompetitive exchange rates. A recent study from the World Bank states that the average transaction fee for a single transaction is up to 5.5 percent of the transfer amount and it also takes about five working days for international money transfers. Ripple, a company that sells cryptocurrency (XRP) is utilizing the digital tokens to speed up the transaction process while reducing the costs. Ripple is a California based company that has generated $300 million funds that pay the companies to use XRP for international money transfers.
Xspring is another programme launched by Ripple that pays the developers to code software that focus on the usage of XRP. At the very beginning of this year, companies like Western Union and MoneyGram started working on pilot programmes using XRP. TransferGo, a UK-based company is offering cryptocurrency trading to the customers that enable buying and selling the major cryptocurrencies like bitcoin, ethereum, and litecoin. This company has partnered with 30 banks and has around 600,000 registered users. Sovereign, a new startup launched by Democracy Earth is implementing blockchain technology to give flexibility in how people cast votes, described as liquid democracy. This allows the voters to express their opinions on a particular issue and then vote.
The main success of blockchain lies in its potentials to override the usual bureaucracy of banking sectors and other financial industries that have caused inconvenience earlier. This technology allows the customers to spend their bitcoins and litecoins safely without any complications, and with the help of iSwipe, customers can convert their bitcoins and litecoins whenever required. This technology is bringing groundbreaking transformations in the way business transactions are done. For some, blockchain and cryptocurrency are not effective, but others consider it to be the next wave of the internet. However, it cannot be justified what is right, but it is a fact that those businesses that invest time in understanding such trends, opportunities, and threats, and then accordingly decide on leveraging them or not, can help them achieve greater benefits to lead their respective industries.
See Also: Financial Services Review
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