Block Chain-Based Remittance Service
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Authors
Kovilampati, Vishwarupachari
Choi, Junyeong
Issue Date
2022-03-28
Type
Other
Language
en
Keywords
Blockchain , Cryptography , Mobile application , Remittance
Alternative Title
Abstract
Remittance is a primary resource that involves cross border transactions between immigrant and to their home country. Remittance involves transfer-wise, western union and many other applications to transfer money from one country to other country. In general, remittance is liked to be centralized financial institutions like banks and currency exchanges, but Blockchain Remittance can be a game changer for all financial solutions. Block chain means service providers can use encrypted block to send and receive money two individual located in two different countries. Blockchain remittance never depends on any centralized banking institutions like banks or foreign exchanges. For blockchain network a wallet/bank app are the only mediators. This technology offers low transaction fees and improved speed. Also, this is considered an ideal solution to facilitate international money transfers and uses core principles of cryptography for verification and security. Most often people need alternative to the remittance for three different reasons such as the time for transactions are too slow which might take up to 5 business days for each transaction and no one have that much patience to wait to receive money from overseas, expensive because of the transaction fee that varies from 4% to 7% and this occurs when multiple vendors are involved and lack of standards could be the biggest concern cause in few cases it might involve multiple vendors for one transaction and this increases transaction fee and lack of transparency. With Blockchain technology all these problems can be eliminated, and it can be adaptable and scalable with in next few years. A mobile app can be used to process any transaction using this technology and this can be good example, even ATMs can facilitate blockchain, but remote areas can face lot of issues because of internet connectivity.