Chargebacks911® COO Explains How Blockchain is Shaking Up the Finance Industry
Monica Eaton, co-founder and COO of Chargebacks911®, recently appeared as a special guest contributor on investment advising site, ValueWalk. She discussed one of the biggest shifts in finance, the rise of blockchain.
What is blockchain technology, and what disruptive impact will it have on payments and finance over the next several years?
A New Way of Processing Payments
The innovative aspect of blockchain, the technology behind Bitcoin and several other decentralized cryptocurrencies, is that it records each transaction in a shared spreadsheet in real time. This bypasses much of the complex payments industry infrastructure, simplifying the payments process considerably.
As Monica explains in the piece:
The blockchain records every transaction that has ever happened involving that currency. However, because the database is distributed across thousands of different computers, it has no one single point of failure, meaning that even if one or multiple computers fail, the data will still be hosted and updated elsewhere.
…With broader application of this technology, banks could potentially save as much as $20 billion each year by 2022.”
Monica praises the application of blockchain as a potential cost-saver and an anti-fraud technology. At the same time, though, she also mentions that blockchain is not infallible, nor is it risk-free. She referenced a recent hack in which thieves managed to steal $68 million in Bitcoins.
The Future of Blockchain
Monica acknowledges that blockchain is still a very young idea, and the body of blockchain adopters, while passionate about the technology, remains small. However, she goes on to speculate that the platform shows great promise, assuming users can sort out blockchain’s ongoing concerns about security and standardization.
