The ease of making when telegraph companies introduced wire transfers, transactions and services generally had been revolutionized. However, with the coming of era services such as Ripple and Bit coin, it is the time we tackle the question of what the future holds for the world’s services.
Traditional Wire Transfers
Let us start by first having a look at how things have been going on because cable transfers for all these past 150 years were introduced. Transferring funds is not a single step procedure but a procedure. It is like this
- The sender approaches her or his lender and orders the transfer of funds. The sender provides to the lender codes such as IBAN and BIC codes the bank knows where the funds will need to be transferred.
- The sender’s bank contacts the bank of the receiver by sending a message through a safety system, such as SWIFT or Fed wire, signaling it that a transfer has to be made. The bank of the receiver receives this information, which asks the crypto tipster to transfer the amount, and includes settlement instructions also.
- The sum is now transferred by the sender’s bank. This is not done but bit by bit, so it can take anywhere from a few hours to a few days for the sum to be moved.
What sets services Like Bit coin apart from traditional services is they do not rely upon a central mediator but instead operate using cryptographic protocols? The practice is easier, faster, and more efficient. The machine is transparent as well while systems are prone to fraud because of the process. There is a drawback to this. With services such as Bit coin, it is easy to trace back a trade to the creation of every unit value.
An Increasing Number of people where a network operator could help users move funds simply by sending an SMS are opting such as Bit coin and transfers. They are a long way from acceptance since there are many people who do not have bank accounts there is the dilemma of user identification in services Though these are more effective . What would be ideal for everyone is if banks overlap the source code of providers such as Ripple on their system and could tap into the potential of monies. It would kill two birds with one stone as
- Decentralized currency systems provide more efficient transfers
- Bank systems ensure only registered users access the service, taking the chance of foul play away.
The world has come a long way since the last time an indigenous support system was introduced. There is definitely a need Decentralized and service currencies such as Bit coin have shown the way.