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Blockchain Remittance – Effective Cost Saving Method

Blockchain is an incorruptible digital ledger of economic transactions that has no central authority. The information in it is open for anyone and everyone to see and has no transaction cost.

Hence, implementing blockchain reduce transaction costs for remittance services in that it can increase transaction speed and simplify cross-border payments, reduce fraud and eliminate third-parties in the transaction, making remittances more affordable and can provide an almost guaranteed real time transaction.

So interesting that blockchain can reduce the USD billion dollars in the cost of sending remittances to an absurd amount in the thousands.

Remitance being the transfer of foreign currency by a foreign worker to an individual in his home country requires that the foreign currency has to be converted to the local currency of his home country using several intermediaries like money exchanges and bank which help in the currency convertion and money transfer and takes their commission for the work but the blockchain technology provides the power in the hand of the individual directly, in that it does not need a trusted intermediary or authority to control or track the transactions.

Traditionally, international money transfers can take days to complete due to the number of verifications that are required but blockchain remittance firms provides instant money transfer services.

As much as populations continue to migrate, there is need to send money back to their home countries, meanwhile, blockchain remittance firms are providing the essential service at a reduced rate.

Why Blockchain gained so much Admiration

• It is decentralized in the sense that it is not owned by a single entity
• It cryptographically stores data just to eliminate third-parties and reduce fraud
• No one can tamper with the data that is inside the blockchain because it is unchanging overtime but the data can be tracked because it is transparent.