This is a guest post by Danial Daychopan, the founder & CEO of Plutus.it. He is a fintech entrepreneur within the payments industry who has been active in the groundbreaking blockchain and Bitcoin ecosystem since 2013. His vision is to create a next generation payment system by utilizing decentralized applications and harness the true potential hidden between contactless payments and blockchain technology.
With the advent of blockchain technology, a brand new term has emerged: “decentralized applications,” also known as smart contracts. A decentralized application is a novel concept that acts as a secure and public agreement between a distributed ledger such as Bitcoin or Ethereum and one or more of its users.
The main advantages for traditional payment systems (such as debit card infrastructure) to connect with blockchain technology are transparency and security. Positive side effects include a reduction of operational costs, as well as fees charged to customers. And because all transactions and contracts are verified independently by the blockchain itself, this adds the ability to automate audits, accounting and record-keeping.
Decentralized applications can automate business processes and exchange systems in a transparent and immutable manner. The key attribute is that these contracts are not enforced by human entities and organizations, but rather by consensus and mathematics. This ensures that reliable and time-stamped records of transactions and trades continue to exist even if the centralized site and interface go offline, and cannot be altered or deleted by anyone, even the administrator of the system. It also means that within this system, trades and contracts continue to work without the reliability on a centralized system.
Users and employees therefore have the guarantee that the records of their activity will not vanish or be muddled should the site go down or be manipulated. These records are stored across a distributed computer network, which […]
