- The existing banking system is hierarchical.
- The existing banking system uses the notion of a transaction day.
- To confirm the transfer of monetary funds from one bank to another, verification centers are used.
- The banking system suffers from DDoS attacks.
- If the blockchain technologies reduced the cost by 20 or 30% they would have all chances for success.
Blockchain is a distributed network (everyone is connected with each other), payments in the physical online are way cheaper.
For example, if a bank has a subsidiary in Tokyo, and there it is already the 16th of May, they may not carry out the payment to Berlin if there it is yet the 15th of May.
In turn, blockchain never uses the notion of time but only the sequence of transactions, this is why it may not face a collision because of a payment made on the previous day. This is why the payment systems based on blockchain may work 24/7 independently of time.
They confirm the fact of the carrying out of the payment which may not be challenged under any circumstances. This increases expenses and slows down the carrying out of transactions.
Blockchain algorithmically confirms the fact of the carrying out of a payment and does not need an intermediary for the verification of of the payment’s validity. This reduces the cost of the carrying out of payments and speeds it up.
For example, in 2016 the attacks facing Russian banks were discussed a lot. This led to a failure of payment organization and didn't allow to carry out the clients’ payments timely.
Blockchain’s architecture virtually doesn't allow such attacks to face the payment systems based on blockchain platforms.
If they reduced costs two- or threefold, their victory would be guaranteed.
But the payment systems based on blockchain reduce the cost manifold, which means tens of times. There's no stopping it. The future victory of the blockchain technologies does not make anyone hesitate.