Blockchain: The New Technology of Trust?

Consumers are becoming more apprehensive and sceptical in conducting online transactions due to various scams entangled with online transactions.

Lowering risks of identify thefts

From identity thefts, fraudulent transactions, to online marketplaces not providing enough security to both parties, both consumers and sellers are becoming more hesitant to part with their money through online transactions. According to Brigid McDermott, VP of Blockhain for IBM, “Blockchain is a trusted system of records“.

Therefore, Blockchain payment startup UTRUST aims to solve such payment and trust issues. Having recently successfully raised more than $ 1.5 million in 90 minutes during its pre-initial coin offering (ICO) sale in late August, the company is a step closer in its bid to bring back the trust between consumers and merchants.

Can online transaction risks be minimized?

According to Goldman Sachs, Blockchain technology is redefining the way we transact and it has a far-reaching potential of changing the way we sell and buy. The technology combines the openness of the internet with the security native to cryptocurrency.

According to UTRUST CEO, Nuno Correia, they intend to establish an infrastructure that will offer fast, secure, convenient, and affordable digital currency transactions. With this in mind, both entrepreneurs and consumers will then be able to gradually re-instil the trust in their online transactions.

“We aim to create an infrastructure that provides the benefits of fast, secure, convenient, and inexpensive cryptocurrency transactions alongside the world’s first cryptocurrency payment protection system. Our goal is to democratise the world of altcoins and Blockchain technology to ensure that anyone can benefit from instantaneous, transparent and cost-effective transactions, irrespective of where they live and level of education.”

Re-establishing trust between consumers and sellers

With increasing number of cases of identify thefts and fraud, the company aims to empower consumers to pay with digital currencies. To protect the buyers, the company will be introducing a purchase protection mechanism that helps minimizes the risks of scams and fraud by providing a full payment protection and acting as a 3rd party mediator during the transaction and also ensuring the delivery of the paid product and services.

Protection from price swings

By tapping into a market that is underserved on the Blockchain – payments for goods and services, payment solutions powered by Blockchain technology help protect both sellers buyers from sudden price swings.

There are limitless applications for Blockchain technology. In fact, banks around the world have been using the same technology that powers cryptocurrencies to optimize their existing processes. With the increasing demand to ensure safety especially in online transactions, businesses need to take better control and precautionary measures to avoid incurring costs associated with fraudulent transactions.

More secure transactions

As a trustless network, no person has the ability to make significant changes within the system removing possibilities of transactions from getting rigged. More so, two parties are able to make an exchange without the oversight or intermediation of a third party, strongly reducing or even eliminating counterparty risk.

Blockchain technology is not only transforming banks and the way both consumers and sellers are making transactions online, but also adapts bank regulation and supervision. It will enable banks to track the progressive history of every transaction on their systems to ensure that the origin, ultimate destination and use of fund is traceable and clear.

Ultimately, Blockchain is leading the way for a wave of tech-based financial innovation which allows much more efficient transaction and protection between merchants and buyers. It places the customer at the center of business and it focuses on the ultimate end game which is leveraging Blockchain to prevent disruption as well as ensure that both parties benefit from such secured transaction.

Disintermediating middlemen

As intermediaries are removed from transactions, counterparties can independently transact and verify the data on a ledger without having to hire expensive third parties to manually perform such tasks helping lower down the costs in the process.

While it may take time for most traditional institutions to fully account for the benefits of the Blockchain, only few can sit on the sidelines as this technology can positively change how we do payment and online transactions.

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Author: Celia Graham

Celia Graham is a Canadian technology journalist who has written for many news outlets. she has covered the web hosting and cloud computing industry. She also has a roving brief to write about Startups, Venture Capital, technology trends and emerging markets.