Blockchain is definitely something huge, and Bitcoin alone can prove its potential. But Bitcoin is a cryptocurrency, and it is a one use case for Blockchain. Many people think that they are the same, but they aren't. Thinking Bitcoin and Blockchain as same is like thinking mobile network and text messages are synonymous.
Recently, the experts and pundits are predicting a massive amount of disruption for industries like real estate, healthcare, up to the remittance industry, and they are well aware that Blockchain has the potential to disrupt their state.
Besides, there are many reasons to believe the inevitability. But here’s how Blockchain is set to disrupt it.
No wire transfers anymore
The current financial policy and system rely almost entirely on the wire transfers. They are backed up by a financial institution or a bank. No doubt that it's a reasonably safe and good system. But the main lacking is it takes much time to process, which can be disturbing for immediate deals.
But with Blockchain, companies can now outmaneuver the traditional wire transfers and offer a cheaper, fast as well as a secure money transferring system.
Third world disruption
The never-stopping pace of innovation means that there is a big rise in the mobile ownership in their world countries, thanks to the decreasing hardware cost. In some of the third world countries, there is poor banking system or concerns about the long-term value of their national currency.
For them, the digital transaction can be the ultimate solution, mainly because the Blockchain technology lets your payments to be processed super-fast. This is much relevant when there is almost 40 percent of the world's population without an actual bank account, but still, money is flowing from developed countries to developing countries at a mind-boggling rate. In the year 2016 alone, 429 billion US Dollars were transferred, and it increased in 2017. Most likely, it will continue to increase in upcoming years.
Comparatively lower processing charge
For someone who transfers money regularly, the processing fee does matter. As bank fees are not reasonable for them, Blockchain technology is a big relief. With Blockchain technology, the processing fees are virtually zero.
What will you do if you know two people offering the same service and one is charging more than the other? Of course, you will go to the person who charges lesser over the other one.
Where the average cost for sending remittance through the traditional bank is almost 7.5 percent of the overall amount, Blockchain technology doesn't charge you a cent. So Blockchain technology gets the upper hand here.
Full transparency
Although it might seem like anonymous payments mean lead transparency and a huge chance of fraud, it is not the case with Blockchain. It's true that the source of money sent with Blockchain technology is hard to track, but the actual receiver and sender know where the money is. And that's enough for the person who sent the money and who is receiving.
Where you can have full transparency; No processing fees, quicker transaction, why bother with a regular bank, and that is what people are asking themselves, ever since they are introduced to the Blockchain technology. So there is no doubt that Blockchain technology will disrupt the remittance industry in future if it didn’t start already.
