During my childhood, my father went Tripoli, the capital of Libya and worked there for his livelihood. As he was the only earning member of our family, we were waiting for the remittance that he used to send to us. Sometime, we had to wait for months to encash the Demand Draft we used to receive by post.
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The above story is a flash back of 30 years ago. Now I am going to share my one week past experience. I wanted to transfer a good amount of money from one renowned private bank to another. First the obstacle I faced was- there is limit to transfer the amount. More than that I am not authorized to transfer!! But I needed the amount to transfer urgently. However, considering the situation, transferred the stipulated amount but finally it deposited two days later to other bank.
The difference of above two true story is- now the situation is much improved (require 2 working days to reach to beneficiary account!!). But considering the current situation can we say money transferring system is actually improved to the user expectation level?? Now we are living in the age of science and technology where we talk live, share the photos, videos within a fraction of seconds but sending money require two days yet!! Then where is the solution?
Yes, Blockchain could be the ultimate solution.
What is Blockchain?
Blockchain is an open distributed ledger which can record transection between two parties effectively and safely. This is a technology which is typically managed by peer-to-peer network system. Due to its design, invented by Satoshi Nakamoto, is a very secure technology as frequently creates new blocks. The most important part of Blockchain is, it is faster and does not require any third party involvement. As there is no third party involved, the transection made by the user is cheaper compare to other traditional transections.
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So, how Blockchain can make the transection faster, cheaper and trustworthy?
Let’s assume person “A” want to transfer an amount to person “B” from China to Bangladesh. In our traditional system the person “A” send the money to a trusted third party and then it will send the money to person “B”. As per our current system, it takes minimum three days to reach the amount to the ultimate beneficiary as well as has to pay a good amount of fees.
But, if same work done by Blockchain technology, the same amount will reach to the beneficiary within a flash by spending negligible amount of fees as no third party involves here. Isn’t it interesting?
As the technology is relatively new many countries are reluctant to start the initiatives to take it forward. Reverse scenarios are also there as number of countries has already taken initiatives to adopt Blockchain technology to boost their economical transection. Countries like England and Japan are thinking to use Blockchain in different projects. A recent report published by World Bank states that Blockchain applications are likely be the incremental, and will likely replace processes and activities that are still manual and inefficient.
If Blockchain is a sea, I just put a drop of water here to make things understand very simply. As I am not so expert in this arena as a new user, please do not hesitate to put your comments if anything goes wrong.
Thanks for patience to read the article.