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Blockchain technology could completely change the way businesses operate

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Credit cards came on the scene in 1950, and since then, commercial transactions have never been the same. Now, credit cards are more than just short-term loans, or credits, to an account – they are a way for people to earn rewards and fund an amazing vacation that would otherwise elude them. The widespread use of credit cards has its share of advantages and disadvantages, but after reviewing the situation, it seems that things need to change.

Credit cards, in many ways have been extremely beneficial to businesses. Customers can pay for things that they can not afford in the current month by swiping their card and pushing the expense to next month's balance. The bank linked to the card pays the company for the purchase, and then the customer pays the new debt to the credit card company. Businesses receive payment quickly and consumers are more likely to spend with a card in hand.

What could go wrong? Unfortunately, a lot. Credit card fraud is on the rise, and it is increasingly dangerous for consumers and businesses. Consumer credit scores can be destroyed in one fell swoop, and companies can also receive spurious sales spinoffs.

Even apart from security concerns, credit cards and other traditional means of payment suffer from other disadvantages. Banks and credit card companies charge fees for transfers and credit card transactions, which results in increased spending for companies that often go to customers' portfolios in the form of higher prices . In addition, payments by bank account are fast, but sometimes they are not enough. It may take several days before a transfer will take place, sometimes longer, and in this global economy, this is not enough.

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This raises a simple question: "Is there a way to increase the security of payments and the speed of payments?" Blockchain platforms, which exploit decentralized registers containing a history of all transactions, have answer.

These breakthrough platforms offer businesses a way to quickly process payments while ensuring payment security, benefiting both consumers and merchants. These platforms deal in particular with transactions based on cryptocurrency, which increased by 62% per year since 1945. since 2014.

The growth of blockchain technology and the need for mainstream integration

Some companies estimate that the annual income for blockchain business applications will rise to nearly 20 billion dollars by 2025. It is an annual rate of about 26%. Others point out that the number of blockchain users has gone from about 4.6 million to 17.7 million in the last two years alone. It is clear that businesses need to adapt to the increasing use of encrypted parts.

Unfortunately, many companies are not ready to take the plunge and start doing business with cryptocoins. Much of this is a lack of education. Blockchain technology can be complex and confusing, and an unknown and unsteady regulatory environment makes the horizon unclear.

Enter blockchain-based platforms that integrate the payment structure of a company to facilitate blockchain transactions. Companies such as the recent start-up Jincor provide advice and legal assistance to companies using their platforms, as traditional banks do. They also take their customers through strict verification processes, linking their blockchain or digital ID to a mainstream entity. The result is that all transactions between the parties on the platform comply with regulatory and corporate policies.

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Jincor and companies like them, use the particularly useful aspects of blockchain technology in the general business world, by mixing new and emerging technology with a platform that is useful for business structures. company inherited. The result is a usable and secure payment platform, free from the inherent risks of legacy systems.

The workings of Blockchain payment platforms and why they are needed

What will happen if businesses make the leap to blockchain payment platforms? First, they will experience a much higher payment rate. The blockchain platform runs on smart contracts, which are designed to execute the terms of an agreement at the moment a transaction takes place. For example, if a consumer decides to buy a book through the intermediary of a merchant who accepts cryptocurrency, payment is made as soon as the conditions are met. This is completely independent of the customer who passes a card, gives money or sends a check. So, companies should not worry about bad debts once a smart contract is in place.

Second, businesses, and consequently consumers, will save money by switching to blockchain-based platforms. By removing the middleman, whether it is a bank, a credit card company or other financial institution, the fees decrease significantly. Because blockchain platforms allow direct communication and interaction between the buyer and the seller, there is no intermediary to take a piece of the pie.

Blockchain payment platforms are still in the development phase, but it is hoped that they will be in full swing by the end of 2018. Companies like Jincor launch their ICOs this year. Jincor's, in particular, will begin November 15 and will help fund key platform developments that should see the production mode operating system by the fourth quarter of 2018.

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Although initially daunting, blockchain technology has a lot to offer businesses. It can be used to increase the chances of receiving a payment and to reduce costs. These platforms also benefit consumers, allowing them to have the peace of mind that their transactions are secure and that they deal directly with a verified business.