Blockchain is the technology that employs a network of databases in various computers that keep records of transaction in “blocks”. These blocks give proof of who owns what and at what time. Every computer on the network have to approve a transaction just before it is noted in a new block and added to all the earlier blocks, creating a “chain” of computer codes.
Payment systems are generally still centralized. Banks have to keep a complex and costly web of “corresponding bank” relationships to facilitate transfer of money across borders. Clearance of transfer is carried out through central bank. Synchronisation of internal bank ledgers always takes several days. Money can get lost and reporting is arduous and complex. All this increases risk, time and cost.
For more on this story visit the following link: How Blockchain Technology is Impacting Money and Payments