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Payments processing is a cornerstone of global banking andessential to the supply of goods and services within all markets. The entirepayments process is reliant on trust between parties, primarilybetween the buyer and supplier.   Thisis a key issue in every industry.  This trust comes in multiple forms:trust in the liquidity of the buyer and supplier; trust in the liquidity ofsupply chains; trust in parties honouring purchasing agreements; trust indomestic and international banking systems; stability of exchange rates and anumber of other issues.

Today payments are conducted using fiat currencies, that arelegal tender and are backed by an issuing government. The Australian dollar,U.S. dollar, Euro are examples of fiat currencies, as are most other majorworld currencies.

This differs from money whose value is underpinned by somephysical good such as gold or silver (commodity money).Digital currency is also emerging as a source of valuetransfer.  Digital currencies (example – bitcoin), also known ascryptocurrencies,  are currencies that underpin value through the use ofcryptographic puzzles with limited solutions (therefore creating scarcity),abstracting a physical or fiat based asset into ‘tokens’, or via a number ofother mechanisms such as ‘proof of stake’.

  The transactionhistories of these blockchain based solutions are kept in what is known as a’ledger’, which is most cases is an immutable record of current holdings andpast transactionsAs with FIAT or Commodity based currencies, digitalcurrencies can be used as a form of P2P digital money, purely relying on theblockchain ledger and verification through encryption algorithms, rather than acentrally controlled entity like a central bank. In the cryptographic currency market place there are fewviable solutions for business to business transactions.  Emergingorganisations such as the request network provide solutions to invoicing butnot to liquidity constraints.Payments processing is a cornerstone of global banking andessential to the supply of goods and services within all markets. The entirepayments process is reliant on trust between parties, primarilybetween the buyer and supplier.

  Thisis a key issue in every industry.  This trust comes in multiple forms:trust in the liquidity of the buyer and supplier; trust in the liquidity ofsupply chains; trust in parties honouring purchasing agreements; trust indomestic and international banking systems; stability of exchange rates and anumber of other issues.Today payments are conducted using fiat currencies, that arelegal tender and are backed by an issuing government. The Australian dollar,U.S.

dollar, Euro are examples of fiat currencies, as are most other majorworld currencies. This differs from money whose value is underpinned by somephysical good such as gold or silver (commodity money).Digital currency is also emerging as a source of valuetransfer.  Digital currencies (example – bitcoin), also known ascryptocurrencies,  are currencies that underpin value through the use ofcryptographic puzzles with limited solutions (therefore creating scarcity),abstracting a physical or fiat based asset into ‘tokens’, or via a number ofother mechanisms such as ‘proof of stake’.

  The transactionhistories of these blockchain based solutions are kept in what is known as a’ledger’, which is most cases is an immutable record of current holdings andpast transactionsAs with FIAT or Commodity based currencies, digitalcurrencies can be used as a form of P2P digital money, purely relying on theblockchain ledger and verification through encryption algorithms, rather than acentrally controlled entity like a central bank. In the cryptographic currency market place there are fewviable solutions for business to business transactions.  Emergingorganisations such as the request network provide solutions to invoicing butnot to liquidity constraints.

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