Blockchain technology is enabling diverse industries like healthcare, manufacturing, and education to optimize processes, increase transparency, and strengthen the security of the business network. Now, it is all set to simplify and enhance various processes of the aviation sector with solutions and applications like smart contracts. Apart from securing information exchange, blockchain can address several other challenges existing within the aviation industry’s operations. If implemented appropriately, it can enhance operations like customer data management, flight activities, aircraft maintenance, and more.
Understand how blockchain technology can cause disruption in the aviation industry. It is expected to enable transparent, secure, and efficient processes.
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Industries are exploring Blockchain to enhance their complex business processes. Now, they look to strengthen the food supply chain with blockchain.
Read Full Article: Strengthening the Food Supply Chain with Blockchain Solutions
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Following the considerable growth in use cases and applications, industries are exploring the potential of blockchain technology. Many key industry players, as well as governments, are turning to blockchain solutions to optimize and enhance their standard business operations. It is because blockchain application development services have enabled them to avail benefits like quick transaction processing, elimination of intermediaries, security, and much more. Cybersecurity is another prominent area where blockchain and its applications are ready to create new opportunities. The digital information safety and security is among the top priority for 75% of CEOs in 2019 due to increasing cyber-attacks.
Read More Reinforcing Cybersecurity with Applications of Blockchain Technology
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Banking: Loan Applications Challenges
Borrowing money from banks is a time-consuming and complex process. Banks accept loan applications and lend money to only good-risk borrowers.
To ascertain the right borrowers, banks collect details of personally identifiable information (PII) such as DoB (Date of Birth) government IDs, electricity bill, passport number, and whatnot. They use information bits to assess an applicant’s credit rating that predicts their debt payback ability, and the likelihood of debt default.
Also, regulations in many cases require certain PIIs to be shared with regulatory authority, such as money laundering. The prime concern with holding PIIs in large amounts is that it exposes the data to threats like hacks and tempering. It makes the PIIs stored in centralized bank servers an easy target for cyber-terrorists.
Solution: Hyperledger Indy
Hyperledger Indy is one of the prominent blockchain technology frameworks under the Hyperledger blockchain application development project for banking use cases.
Read Full Article : Use Case of Hyperledger Indy in Simplifying Loan Application Process
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The advent of peer-to-peer mobile payment apps has created a new world of cashless, card-free, and pay-contactless transactions. Their cross-industry applications and use cases range from splitting bills, making remittances, and booking tickets to managing daily expenditures.
Financial applications are set to transform the way we make online payments with the availability of digital wallets, cryptocurrencies, m-commerce apps, and peer-to-peer payment apps. Several next-gen peer-to-peer mobile payment apps now support card-less, cash-less, and in some cases, bank-less transactions.
So let’s have a look around at mobile peer-to-peer payments systems that are proving to be a revolution on a global scale.
A peer-to-peer mobile payment application?
At its core, a peer-to-peer (person-to-person) payment app is a mobile application that enables users to perform electronic money transfers. P2P mobile payment apps have a range of use cases that include:
Making payment to merchant/landlord in the installment basis
Making payment to cab services, including discount calculation
Paying a merchant/landlord in installments
Making a friend-to-friend borrowing request
Splitting dinner bills with friends
Making remittances to people living in other countries
Making payments for utilities, internet, and other services
P2P payments are not only limited to geographical locations, i.e users can also perform cross-border transactions.
Business applications designed to serve this purpose
P2P FX (Foreign Exchange)
Person to person foreign currency exchange applications aim to bring users together worldwide. They eliminate intermediaries, such as banks, and brokers, which results in up to 90 percent cost savings on international exchange and transfer fees.
P2P Lending Platforms
P2P lending platforms enable users to avail repayable microloans at lower interest rates than banks. These platforms are more beneficial for investors looking to monetize their funds in fragments.
Also Read:
The Impact Of Blockchain Technology On Peer To Peer Lending
Blockchain-powered Decentralized P2P Lending: A Brief Analysis
P2P Cross-border Money Payment Application
They offer cheaper transaction provisions as compared to their traditional counterparts. Now, technologies like smart contacts make possible to make secure payments via a smartphone app.
Business models of p2p payment applications
Peer to peer mobile payment solutions vary as per the requirement of the work areas, such as airtime transfers, travel and ticketing, and merchandise and coupons. Their industry applications include fields like retail, travel and tourism, hospitality, logistics, energy, utilities, etc.
Companies looking to develop a mobile-based peer-to-peer money transfer system can consider developing one of the four types of its business applications.
Bank-Centric Applications
Several banks consider deploying mobile payment application to customers. It ensures that merchants have the necessary PoS (Point-of-Sale) acceptance provision.
Standalone Financial Solutions
These applications provide online P2P/C2B payments with or without checking accounts and debit/credit cards. Generally, these apps come with an integrated wallet.
Social Media Platforms
Social media payment solutions enable users to make frequent payments to people they regularly connect with. It is the reason that several payment applications are integrated with messaging apps.
Mobile OS or Device Manufacturer-based Solution
These applications enable money transfers within their product network or ecosystem. In such a payment application, ‘Payment’ is generally a default device-feature than a standalone app.
Now, it might look complex to develop a peer-to-peer payment app, with so many peculiarities and big players already dominating the market.
However, we have made it simpler with the following steps that you need to consider before developing a p2p payment app.
Reasons to develop a peer-to-peer payment application
Latest Technology Integration
Technological advancements lay the foundation for developing new, innovative business models. They provide efficient solutions for value-adding to consumers and making businesses more self-reliant.
Then, we should consider the following emerging industry-transforming technological advancements.
Real-time transactions
Real-time transactions or payments (RTM technology) enable the existing payment solutions to achieve faster transaction speed. Also, they provide essential messaging capabilities and immediate update of transaction status.
Distributed Ledger Technology/Blockchain
DLT based technology like blockchain and smart contracts facilitate solutions that provide enhanced security and cost-efficiency.
Unified platforms
Migration from legacy and pricey systems to single blockchain based platform can provide more affordable payment solutions.
So now let’s explore one use case based on the aforementioned factors in the payment p2p app development.
Peer-to-peer payment system: Example
Airfox
According to the MIT Technology Review, Airfox is a highly acclaimed startup amongst revolutionary financial solutions. Airfox aims to develop a new system that serves people having limited access to banking with reliable, egalitarian, and democratic access to financial services. It is a revolutionary peer-to-peer microloan lending and disbursal system that uses ERC-20 tokens issued on the Ethereum blockchain.
The app facilitates users to make peer-to-peer payments and avail loans. For instance, a user initially deposits its Airfox integrated wallet and conduct payments through the app. Further, the application improves the credit score based on certain predefined parameters, which makes a user eligible for more efficient loans.
Airfox makes use of the following technologies:
Mobile: Users get a complete mobile payment experience
Machine learning: Gathers data from users’ smartphones to generate a credit score
Blockchain: All transactions pass through blockchain, and also stored in its database
The company aims to create its all financial instruments using blockchain to have anyone worldwide finance their users.
Getting into P2P payment app development
When it comes to developing a payment system, security and standardization are the paramount factors. Additionally, preventing fraud and other issues is another way to ensure long-term success.
Design
A decentralized peer-to-peer system must have a strategy in place to set up resource allocation and protection requirements. Particularly, they need to prevent two types of attacks: DoS and storage flooding.
Regulation compliance
As the fintech market is growing, it also needs to fulfill regulatory demands while also adhering to complex laws.
Features
A focus should always be on how to deliver from quality UX to features that can stand the test of time, instead of experimenting with functionality.
Unique ID/OTP
User digital wallet
Notifications
Send/request money
Send a bill/Generate an invoice
Transaction history
Transfer amount to the bank account
Network Security with Blockchain
P2P networks are more affordable, easy to maintain, quick and reliant than centralized systems. However, one thing that hampers their widespread adoption is security, At the same time, it is of paramount importance in online payments. Both data transmission and storage always remain at high risks. It is where blockchain technology comes into play and enables blockchain application developers to deliver the benefits of peer-to-peer networks.
For instance, a blockchain based payment system can use the Rich Communication Services protocol (RCS) to replace SMSs with the text-messages system that provides phonebook polling and in-call multimedia transmission. A similar protocol has already been tested by a Japanese company SoftBank for P2P transactions between mobile users.
Blockchain application technologies that can be used to further enhance the development of a p2p payment system
NEM (New Economic Markets)
Stellar
Ripple
Smart Contracts
Hyperledger
Wrapping-up
Entering the market of fintech development is challenging, but at the same time, it can be a game-changer. We have the requisite expertise in providing efficient fintech application development services with blockchain technologies. If you re looking to enter the development space of Fintech market, connect with our blockchain specialists today!
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Hyperledger Fabric is a platform that fits best for developing private and permissioned business solutions with distributed ledgers. It enhances confidentiality, resiliency, flexibility, and scalability of the network with its modular architecture. Hyperledger Fabric enables developers to build private blockchain solutions for organizations looking to set up private consortiums. Unlike public blockchains where anyone can join the network, users have to enroll through Membership Service Provider (MSP).
Hyperledger Fabric Network Model
Its network has features that enable the development of standard customizable enterprise blockchain systems.
Assets: Facilitating monetary value exchange across the network
Chaincode: Reducing the required levels of trust and verification across node types, and optimizing network performance and scalability
Ledger: Encoding transactions for each channel, including SQL-like query provisions
Channels: Enabling multi-lateral transactions with enhanced levels of privacy and confidentiality
Security and Memberships: Authorizing and assigning regulators and auditors as members to detect and trace transactions
Consensus: Enabling network operators to select a consensus method that fits best to represents participants’ existing relationships in the network
Participant details operating in the network developed with Hyperledger Fabric
Modular Architecture for Development
Hyperledger developers create the application and smart contract
They deploy the application on the server and the smart contract on a peer using DEPLOY
A verified user interacts with the app by sending orders (INVOKE) or retrieving information (Query) through the smart contract
Smart contract executes an event subscribed by the applications
Work Model of Hyperledger Fabric
A work model of a Hyperledger Fabric based system
Its design makes it truly modular, scalable, and secure foundation for enterprise blockchain solutions. It decouples peers into two distinctive runtimes with three separate roles.
Commiter peers: Commit transactions, and maintain ledger and state
Endorsing peers: Receive, and grant, or deny transaction proposals of endorsements
Ordering peers: Approve addition of transactional events to the database, and communicate with other two peer nodes
Use Cases of Hyperledger Fabric
B2B Contracts
Hyperledger Fabric has the provision for coding business contracts that enable trusted automation of contractual agreements between two or more parties. While information remains ‘public,’ B2B contracts often require privacy control over their sensitive business information. Although confidential agreements are a critical business element, there are situations in which contracts must be discoverable by all participants.
Roles
Contract Participants: Contract other counterparties
Third-party participants: Stakeholders who will guarantee the contract’s integrity
Key Components
Multi-sig contract activation: When one of the counterparties execute their first contract, it goes to the pending activation state. Then, it requires signatures from other counterparties or other third party participants for activation.
Multi-sig contract execution: Some contracts may also need one of many signatures to execute the contract. For instance, in financial trades, a payment instruction execution is possible when the recipient or authentic third-party confirms the shipment.
Discoverability: If a business contract is seeking bids, it must be easily discoverable. Blockchain developers can use Fabric to build smart contracts that have built-in intelligence to evaluate, choose, and honor bids.
Contract execution or atomicity: Atomicity of a contract guarantees that asset transfer will only occur when the recipient has received the payment. If any execution process stops fails, it will roll back the entire transaction.
Contracts to chain-code communication: Contracts must communicate with chain-codes, deployed on the same ledger.
Reusable contracts: Standardize most used contracts for reuse.
Auditable contract agreements: Provides provisions to third parties for auditing any contract.
Contract life-cycle management: Enables an efficient contract management system to scale the ledger network as some contacts might not be standardized.
Validation access: Only nodes that have validation rights can verify and validate transactions of B2B contracts.
View access: Only accounts with predefined access rights can view and interrogate the B2B contracts as they often include sensitive information.
Manufacturing Supply Chain
Final assemblers, like automobile manufacturers, can form a supply chain network managed by peers and suppliers. It facilitates better management of suppliers and makes them more responsive to various events, such as vehicle recall events. The network protocol must enable supply chain participants to input and track numbered parts produced and used for a specific vehicle. Also, it should have the backward searchability for provenance tracking of goods, which may include other supplies.
Roles
Final assemblers: Entities that assemble the final product.
Parts Suppliers: Supplier of parts. They can also be assemblers, by assembling parts received from other sub-suppliers, and then sending the product to the final assembler.
Key Components
Payment upon the delivery of goods: Upon receiving of parts, it will require integration with off-chain payment systems to execute payment instruction.
Third-party Audit: The solution must allow all supplied parts to be auditable by third- parties. For instance, regulators may require tracking of the total numbers of supplied parts by a specific supplier for tax accounting.
Shipment obfuscation: It requires balance obfuscation to restrict suppliers from deducing activities of other suppliers.
Market size obfuscation: It obfuscates overall balances to restrict part suppliers from deducing their own market share for negotiating contractual terms.
Validation access: Only nodes with validation access will have the right to validate transactions, such as the shipment of parts.
View access: Only accounts that have view access will have the right to interrogate the balance of the shipped and available parts.
Related Reads
Compelling Use Cases of Hyperledger Blockchain Applications
How Hyperledger Increases Blockchain Adoption In Various Industries
Use cases for additional requirement and scenarios
Single Trade, Single Contract
From the capture of a trade by the front office to its final settlement, the solution will create only one contract. The intermediaries will receive the same electronic contract. Later, counterparties will also use it to validate the trade. Eventually, securities depository will execute the trading instructions mentioned for settling it. However, in bulk trades, there will be divided sub-contracts that are always linked to the parent contract.
Interoperable Assets
If a company needs 10,000 units of asset B but owns only 5,000 units of asset B, a solution for exchanging assets is essential. Although the existing market may not provide sufficient liquid options to achieve this trade, liquidity between asset A and C will be available. So, instead of market limit settlements on direct trading (A for B), the network chain will connect buyers with buried sellers, determine the best pair, and execute the transaction.
More About Hyperledger Fabric:How Hyperledger Fabric Cultivates Business Interest In Blockchain
Concluding Thoughts
Verifiable identities of the participants is a primary requirement for private industrial networks.
Hyperledger Fabric is best suited for ensuring the identity of participants and the privacy of specific transactions on the network. Fabric provides a modular architecture with permission-based membership services, which require all network participants to have verified identities to access transaction information. It has implications in industries like healthcare and real estate, as they are bound by the data protection regulations. They mandate these industries to maintain data about various participants and their permissions to access various data points.
Fabric provides such permissioned-based membership. Only the permissioned participants get access to the necessary details. Such a data partitioning system developed on the blockchain enables specific data points to be accessible to only the parties that require it. Its modular architecture acts as a foundation for blockchain-based products and applications development with plug-and-play components for private enterprise ecosystems.
Oodles is a Hyperledger application development company that has expertise in enabling businesses and startups to streamline their processes with transparent and efficient transactions. Our blockchain team evaluates intricate details of the solutions and use multiple benefits of Hyperledger to fulfill your business requirements. If you’re looking for efficient and effective Hyperledger application development services, connect with our consultants and tech experts.
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The cross-border payments market continues to grow with increasing international commerce, migration, and changing economic trends. Currently, financial institutions like banks have significant dominance in cross-border payments with a market share of 95 percent. However, their payment transfers and services lack transparency, attract high fees, and lead to delays. These long-standing obstacles can be overcome with blockchain technologies like Ripple. Ripple provides cutting-edge mechanisms for customer-centric and innovative payment services. It aims to change the current payment landscape entirely by overcoming traditional pain points or even replacing the existing financial services system.
So, let’s take a look at how Ripple is giving tough competition to conventional competitors like Swift and Western Union in cross-border payments?
Challenges with Existing Cross-Border Payments
Legacy international payment systems are inefficient and complex. Their transactions involve multiple banks across different locations. In addition, there is a lack of transparency about fees and uncertainty on whether cross-border payments will even reach intended recipients.
Small to large businesses complain about different problems with cross-border transactions. Large, established corporations that deal in high-value international transactions have concerns about the lack of transparency in FX (Foreign Exchange) rates. For smaller companies, access to services and high-costs of cross-border payments are major issues.
Given these inefficiencies, traditional international payment systems fail to meet today’s global e-commerce demands for cross-border transactions. They need to provide improved transparency, more speed, and lower costs.
As a response, financial institutions are embracing new methods to expedite cross-border payment efficiency with transparency and reduced operational costs.
Are Existing Cross-Border Payment Systems Inefficient?
Within the current system, there are a few key players who dominate the international money transfer market around the globe.
SWIFT, a messaging system used by correspondent banks, enables financial institutions globally to disseminate information related to financial transactions. Its network consists of more than 11,000 banks. As of now, no other global payments network has been able to reach this number. Essentially, SWIFT doesn’t initiate money transfers but sends payment orders that correspondent banks must settle between themselves. The issue with the system is that it faces a lot of criticism for high fees, low speed, and opacity.
Western Union, a wire transfer system, is the most renowned name in the global remittances industry. The Western Union platform can execute only 32 transactions per second. To increase this number, the company has partnered with Ripple Labs. It is testing Ripple’s cross-border payment tech XRapid.
Blockchain as a Solution
The reason that many financial institutions are adopting blockchain technology is its potential to resolve issues at the infrastructure level. Blockchain applications can provide fast, secure, and cost-effective cross-border transactions using distributed ledger technology. Such applications involve no intermediaries like correspondent banks and clearinghouses and ensure real-time transaction verification.
Addressing Customer Expectations with Ripple Cross-Border Payment Solutions
Ripple is an open-source, distributed ledger technology-based system for instant payments at minimal transaction costs. It makes use of a pathfinding algorithm method to obtain sets of currency swaps that provide the lowest feasible fees for cross-currency payments.
Ripple’s cross-border payments product designed for banks is known as xCurrent. It doesn’t require Ripple’s native token XRP, which makes it possible to process cross-border transactions within seconds at low operational costs. Ripple combines payment messaging with funds settlement. It is a feature that was previously missing for cross-border transactions. Customers who use Ripple can also keep their money in banks or other financial institutions. Its network is continuously growing as more than 200 banks and financial institutions have signed up to use xCurrent. They include major international payment providers that operate in multiple countries, like Banco Santander, American Express, USB, and many more.
Ripple also aims to solve the liquidity problem with the upgraded version of xCurrent system called xRapid. It uses Ripple’s digital asset XRP to replace all Nostro/Vostro accounts. With XRP, banks don’t require to have multiple accounts in different fiat currencies. Besides, XRP transactions take a few seconds and need minimal human interaction.
Also Read: Ripple is now a Wave in e-Commerce as Blockchain Crypto Solutions
Conclusion
Blockchain technology can improve the overall efficiency of cross-border payments. However, its potential remains largely unexplored and requires seasoned application support for large-scale payment infrastructures. Banks can benefit by availing the expertise of blockchain technology providers like Ripple to improve cross-border payments, reduce fraud and settlement time, and speed up transactions.
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A cryptocurrency wallet is a software program that enables crypto users to buy, sell and store cryptocurrencies. In simple terms, we can compare it with a physical wallet, which stores fiat currencies. However, unlike conventional wallets, it does not store cryptocurrencies. Instead, it holds records of all cryptocurrency transactions on the blockchain network. It uses the concept of public and private keys to enable transactions on the blockchain network.
In this blog post, we have discussed the types of cryptocurrency wallets, their features, and advantages.
Types of cryptocurrency wallets
Hot and Cold Wallets
Before diving into the types of wallets, let’s understand the difference between hot and cold wallets.
Hot wallets become accessible with an internet connection, while users can access cold wallets offline.
In hot wallets, funds are easily accessible, which enables users to make day to day trading or payments. However, since they require an internet connection, they also become susceptible to risks like hacking. The types of hot wallets are desktop software wallets, web wallets, and mobile wallets.
Cold wallets are physical wallets, which users can use offline. However, it also counts as a benefit, since hackers cannot easily access users’ assets. Cold wallets don’t come in use frequently as users prefer to use them to hold digital assets for the long-term. Their examples include hardware wallets and paper wallets.
Also Read: The Ins and Outs of Cryptocurrency Wallet Apps Development
Web Wallets
As the name indicates, these are web-based online wallets which are accessible through a URL. They run on the cloud and are accessible from any computing device and any location. Generally, these wallets work on account system, which requires a username and password to login to the wallet. While they provide users with convenient access, they store private keys online, which are in control of a third party.
Advantages:
Quick transactions with instant access to the wallet
Storage, transfer, and management of a range of different currencies
Ideal for small cryptocurrency investments
Easy to access and no installation required
Advantageous for advanced buying and selling options
Mobile Wallets
Mobile wallets are similar to desktop wallets and work as smartphone applications. These are quite convenient as they enable users to transfer cryptocurrencies with QR codes.
They are suitable for daily transactions and payments. However, they may require wallet encryption with a password and backup of private keys as additional security measures.
Advantages:
Provision to use QR code scanning to conduct transactions.
Designed to be used on the go, especially for conducting in-person payments to merchants, individuals, and businesses that accept cryptos
Provide complete access to private keys, which means users are in control of their funds
Desktop Wallets
A desktop wallet is a software that users can download and execute locally on personal computers. Unlike some web-based versions, desktop wallets provide complete control to users over their private keys and funds. Upon encryption, desktop wallets require users’ password every time they run the software.
Advantages:
Support a wide range of assets
Provide additional features like portfolio charts
No need to store private keys on a third-party server
Hardware Wallets
Designed as a hardware device, they are one of the most preferred wallets to ensure the security of a user’s crypto wealth for long term use. Users connect these devices to their computer and mobile via USB ports to execute crypto transactions. To overcome the lack of accessibility, they can directly connect the device to a trading platform, which provides integration capabilities. Currently, most hardware wallets have provisions for setting up PIN code for increased protection.
Advantages
Robust security features
Protection for private keys from malware and hackers
Approvals for transactions occur through the device
Paper Wallets
As the name indicates, paper cryptocurrency wallets do not require the internet and are useful for long-term storage of crypto assets.
Advantages
Not prone to internet-related risks
Concluding Thoughts
Deciding which crypto wallet is best to use depends on business requirements. For instance, whether you need to access your wallet every day, or is it for more long-term use. After obtaining answers to these questions, you can decide which of the above wallets will suit your needs best.
Another aspect of cryptocurrency wallet development is ensuring security with stringent measures like DDoS mitigation, anti-phishing software, two-factor authentication and much more. We will cover them in our next blog post which lists the important security aspects one must consider for cryptocurrency wallet development.
Oodles’ cryptocurrency wallet development services provide flexible and secure crypto wallet solutions to be used in everyday life. Our developers integrate wallets with convenient QR Code, NFC or URL payment options, and implement best security practices to ensure maximum security, and keep assets safe and secure.
Blockchain Development Services | Blockchain Development Solutions
Oodles’ Blockchain is a pioneer in custom blockchain development services. Our team of Blockchain software developers is dedicated to providing the best blockchain development solutions to existing
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