Technology is the building block for new transformation which are paving the way for a new set of developments. Companies are now actively looking for Blockchain experts and Blockchain developers who can help in syncing the current business operations with the Blockchain platform. There are several use cases of Blockchain which ranges across different business verticals. Whether it is a finance sector or healthcare, supply chain or education, Blockchain finds its applications here. One of the key use of Blockchain is in financial transactions. With more than 250 million immigrants and migrant workers wanting to send money to their native country, the need for a simpler and easy to use transaction platform is rising.
Around 25% of the global remittance volume is catered by Western Union and other three large MTOs, while the remaining 75% is taken care of by small and mid-sized companies. While it may sound that everything is taken care, but this segment suffers from some grave issues lie latency, illiquidity, growing reluctance from back to service smaller MTOs because of compliance issues. All this aggravates the bottlenecks of the conventional money remittance system.
At the same time, the World Bank also shared the information stating that remittance to developing countries would increase. To cater to this growing demand, there is a need for a system which is seamless and also highly secure. The conventional system cannot handle the large volume of remittance that is required by the people, and hence there is a need for a platform that can guarantee the same.
Blockchain platforms have become popular because of this. DLT technology has all the necessary features, which makes it one of the most popular choices and solution for global remittance.
1. No third-party intervention- One of the key problem that Blockchain addresses are that this platform is free from third-party interference which reduces the latency issues. Thus ensuring faster remittance
2. Security of transactions- Digital platforms, despite claiming to be free from hacking and malicious attack, is not able to provide a secured platform for the transaction. There is always a threat of data hacking and breach of security. With the help of Blockchain, we can easily cater to this problem. All the information on Blockchain is encrypted cryptographically, thus making it absolutely safe for the user.
3. Faster transaction — Since Blockchain works on the peer-to-peer transaction, it makes it easy for the sender to send the money without waiting for approval and validation directly. Thus ensuring faster transactions.
With all these features, Blockchain platforms can easily resolve the issue related to global remittance. Blockchain-based remittance solutions will help the smaller MTOs to have reduced dependency on banks; this will reduce their operating expenses. Thus saving them some money which can be used for their other business operations. Also, Blockchain will allow the MTOs to have low transaction fees.
Blockchain-based applications are going to increase with time and so will be the need for Blockchain professionals who can help in leveraging this technology. To know more about Blockchain, connect with Blockchain Council today. This is an online learning platform where one can apply for Blockchain certification and Blockchain training. With this certification, you can expect your career graph to grow positively. Enrol for this certification today.