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27 September 2017
Mobile and blockchain technology development and adoption is rapidly growing, as more financial institutions are tapping into the trend offering more products and services based on both platforms. But there is still a substantial gap in the niche of ‘mobile blockchain’, or the combination of the two, even though some manufacturers and developers have pioneered the path and presented their concepts of the hybrid solutions and goods. How blockchain could be interfacing with mobile technologies and would such a tandem be an advantage for users?
Security of mobile transactions: advantages are likely
While some countries like Australia and China feature high adoption rate in the mobile payments plane, many consumers across the globe at places such as the United States still remain wary of mobile transactions on concerns of their security. Blockchain is reshaping the financial services as the whole ecosystem is based on the trust ensured by the collaboration between the nodes in the network, rather than centralized authority.
Blockchain ensures trust between strangers as all transaction details are recorded in every block in the chain making it next to impossible to forge the data, because to complete the transaction a party needs to prove its eligibility with the full ledger of all transactions completed before. When blockchain deeply entwines the mobile financial services, consumers will feel safer to perform mobile transactions.
Affordability: advantages are likely
One more hassle slowing down the adoption and use of mobile payments is their cost, as customers reluctantly part with their hard-earned money deducted for a transaction that could be performed without any fees if they pay with cash. Blockchain makes mobile wallets more affordable, because there is no need in a central processing body like Clearing House, as all transactions are processed by the participating nodes, or users with high-performance computers.
Speed of transactions: advantages are unlikely
If blockchain technology successfully interpolates into the mobile finances in its current state, mobile transactions will unlikely become faster than they are today with conventional banking services. Bitcoin processes its transactions in 10 minutes, and Litecoin, considered as the fastest in the market, processes transactions in 2.5 minutes, while contactless payments on your NFC-enabled smartphone are instant. In much the same manner, payments for purchases made during mobile shopping, money transfers and bill payments in the mobile application are also instant.
P2P lending: advantages are likely
Peer-to-peer lending, which happens today mostly online, allows individuals and businesses to get access to financing at lower interest rates without burdensome paperwork featuring loans secured from conventional banking institutions. There are cases of loans provided in cryptocurrencies like Bitcoin, when a user may borrow some coins from a miner or another wallet owner on agreed terms. If ‘mobile blockchain’ becomes a reality, users will be able to borrow from each other under mutually beneficial conditions right from their handsets: borrowers will have their financing at a lower fee, and lenders will be able to make greater profit than with traditional savings and investments.
Money transfers: advantages are likely
Money transfers made over blockchain using a mobile device will have some advantages over traditional remittance services. Blockchain-based transfers will be definitely secure, however there are not so many complaints against companies like Western Union related to transaction security. Another advantage, perhaps, will be the cost of transfers, as transactions in most blockchains today have fairly lower fees as compared to the fees charged by financial institutions. Making money transfer at a low cost and from the comfort of your mobile device may become a popular trend.
Contactless payments: advantages are unlikely
Given a time-lagged format of transaction processing in the blockchains, contactless payments made on smart watches or smartphones with NFC functionality may turn to be a painful experience, as contactless financial technologies suppose fast interaction, when users just tap their device on the payment terminal and go, with the amount instantly withdrawn from their bank account linked to the device.
Exciting articles several times a month