Blockchain Payments, Where To?
by Gleb Chernov, VP Business Development
We talk a lot these days about new technologies, from DNA engineering to self-driving cars, the blockchain and its widespread adoption. But hey, where to?
Credited with the capability to change the face of every industry from payments to healthcare, blockchain technology has gained incredible traction in the last couple of years. Yet, are we really living through a new industrial revolution, with the blockchain being its catalyst? I’ll try to answer this question from a business perspective. I’m Gleb Chernov, PumaPay’s VP of Business Development. Some of you may remember me from iFX Expo, Money 2020, BIConf or the Japan Blockchain Conference, where I’ve had the pleasure to present you the PumaPay solution.
What if Bitcoin took over the world as a means of payment?
Let’s imagine that Bitcoin has got past its all-time highs or pip shedding in everyday trading and became a de facto means of payment. On the one hand, that would be marvelous, since we’d all go cashless (in a fantastically good way). Let’s do a thought exercise and imagine a world without banks and credit cards. Wouldn’t that be nice?
Roughly 522 billion transactions per year account for cashless payments across the globe today, and this number is rising. But there’s still a long way to go till we reach the Bitcoin usability age. However, let’s just assume that we are already in that stage where we’re no longer tied to the plastic but to our e- or hardware wallets.
The Bitcoin blockchain will then need to ensure it can support this mind-blowing amount of transactions without congestion. If we increase block size enough to accommodate 522 billion transactions a year, it will equate 1.4 billion transactions every day or 9,772,220 transactions every 10 minutes. Does this ring any bells? For the less blockchain-savvy, this is the frequency that blocks are published to the Bitcoin blockchain.
To support a high volume of transactions, each node on the Bitcoin blockchain would need to ensure storage of 3TB of data. Not to mention the high costs that a node operator would need to consider just to store the blockchain on their machine, and which could exceed $2,000 per year. Plus, the time required by a node of this size to validate 1 block of transactions would be up to 1 month. That’s hardly the ideal solution for today’s expected turnover.
But, PumaPay is here
With the potential to take on credit cards and payment networks, PumaPay is the first crypto project that comes with a solid ecosystem of early adopters represented by market leaders from different industries, which create the perfect environment for PumaPay token holders to use their crypto assets for buying goods and services.
Counting over 50 big brands among its early adopters, such as FashionTV, Backpack.io, Moburst, ExposeBox, Rent24, ImLive (Launch Partner), Vivid Entertainment and other giants in the adult entertainment, online gaming and other sectors, PumaPay is also the first crypto project that laid the basis of a direct debit system on the blockchain. Its unique PullPayment Protocol perfectly serves that purpose and more, offering crypto enthusiasts a wide range of buying options among its early adopters.
By reversing the mechanism of traditional ‘push’ transactions, PumaPay allows a ‘pull’ action on the blockchain for the first time. This not only means that merchants can now pull funds directly from customers’ wallets if permitted to do so, but it also enables a wealth of payment scenarios impossible before with the technology behind cryptocurrencies, such as recurring payments, pay-per-use, shared transactions and any other billing practices that we encounter in daily life. Technically and practically now, crypto holders can pay for anything with their tokens from utility bills, gym membership or any kind of online and streaming media subscriptions to one-time, casual shopping.
PumaPay comes with a full array of API and SDK tools for merchants that easily integrate with any type of platform and a native wallet app for crypto holders. The 2nd version of the PumaPay Cryptocurrency Wallet scheduled for release at the end of July, will allow users to easily purchase PMA tokens using credit/debit cards and convert PMA to other cryptos and vice-versa.
With this in mind, there’s no doubt that blockchain is the future of payments, and that starts with PumaPay: where blockchain technology and payments converge.
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