Faster payments with cryptocurrencies
In the last few days, I have been moving some of my funds in the real world for some needs. You can say a real-world investment. To do the real-world investment, I also had to move some cryptocurrencies as well. The most interesting thing for me was the faster payment option we get with cryptocurrencies. There are lots of procedures involved when we deal with FIAT but if we are dealing with cryptocurrencies it is quite possible to do faster transactions seamlessly.
I must also admit that the Government of India is also making a lot of efforts to make digital payments a seamless experience for users. The Presidents and Prime ministers from other countries who are visiting India are very happy to see how UPI works in India and how digital transactions are happening in India. Though I would say the current setup itself is great, I would like to make it even faster with the help of crypto payments. We will need a payment facility in such a way that we scan a QR code and send crypto payments from one person to another person directly without involving banks or any third party. This can be something that can happen in reality after a decade probably.
Already there is a proper blockchain-based digital currency available in India. Some of the banks are doing a pilot testing where the bank account holders are given the option to create a wallet and try doing this. Though I have not tested this personally, I think this is a great move towards consuming cryptocurrencies as a payment method. Cryptocurrency payments are not only faster but also give other advantages that are as follows:
P2P transactions
Peer-to-peer transactions are one of the biggest features we have in cryptocurrenices where a third person or a third party like banks or exchanges need not get involved, the transactions can happen directly with one person and another person without any middleman. There are some challenges where the transaction fees can be very high which I would say is a failure factor in Ethereum. Still, there are blockchains like Hive that has free transactions and this has made Peer to Peer transaction a great consumable thing for any individual.
Instant payments
If someone has to send the money to another person, similar to the bank deposits we are currently doing like UPI, with cryptocurrencies it is possible to do instant payments. Once the payment is sent, within a few seconds the payment is verified and the amount is credited to the recipient's wallet. Some people might argue that Bitcoin is a chain where transactions are very slow. In recent innovations, they have invented second-layer solutions even on top of Bitcoin which is the lightning layer that can help in sending transactions faster.
Decentralized faster payments
When we expect faster payments, there is always a situation where people will have to go through a service or a bank to do the transactions. Decentralization in cryptocurrencies gives an option for anyone to run a witness or validator node so that all the transactions go through this validator node in a specific algorithm making it decentralized. This way nobody can tamper with the data unless they breach all the nodes in the network at the same time which is very unlikely to happen. The chain would halt if a few nodes go offline or if there is a data mismatch.
Security aspects
There are inbuilt solutions available to make the transaction more secure. There are some cases where if people are doing bigger transactions, they have to go through security measures and wait for approval in some cases. Even in digital transactions, people cannot send over a certain amount. The banks say that this is for security reasons but in cryptocurrency transactions, the users are allowed to do unlimited transactions per day with any number. Some people transfer millions of dollars worth of crypto in just a few milliseconds with full security.
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First many many congratulations bro to your today's success. Even the government of Pakistan has not been able to understand it at all and it has not been legalized here yet, but the way we see that the government of India is understanding it, that is the importance of it. It is going to bode well for India in the near future.