Back in the 1990’s, people laughed at the idea that this newfangled “Internet” thing would be around forever, but everyone who did their research on the world wide web knew that it would be huge, and they were able to make huge profits early on in the game. Today, that next big thing is the blockchain. Not many people understand its complexities, but it truly is going to help make so many things better in the future. So, what is blockchain?
In the simplest terms, blockchain is a network that allows peer-to-peer transactions, and everything is recorded on a ledger. There is no owner or service provider, so no individual company can control the system. Each blockchain runs on a collective network that is spread on servers across the world, so it doesn’t exist in just one place, either.
You have probably used Venmo or PayPal to send money to your friends, but it still takes 3 to 4 business days for the cash to clear in your actual bank account. On top of that, PayPal charges a 3% fee when you get a deposit for a business transaction. With cryptocurrency like XRP, payments can settle within just a few seconds, and the fee is fractions of a penny. This might not sounds like a big deal for the average person, but for a large corporation, they can save thousands, if not millions of dollars in transaction fees. In Japan, there is already an app called “MoneyTap” that allows people to send instant payment to their friends by scanning a QR code. American banks are also working on bringing a similar app over to the US, but they have to wait for the government to establish regulations for the new technology.