BlockChain
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The rise of the crypto-economy, riding on the back of currency revolutions such as Bitcoin, would seem to have spelt doom for services such as PayTM, which rely on the virtualization of fiat currency in order to sustain their business models. Bitcoin server starting paytmthe service as it currently stands is a pull payment model. Fourth, the entire burden of transaction validation and record-keeping, along with KYC implementation, falls upon PayTM as the centralized service provider.
In order to remedy these inefficiencies, PayTM can transition on a medium to long-term timeline away from fiat money towards a blockchain-enabled, semi-decentralized model in which a crypto-currency forms the back-end. Such a shift would benefit the company in several ways, as described below. While it appears attractive to use Bitcoin, Ethereum or another mainstream cryptocurrency to power the back-end, such a solution is inadvisable from a monetisation standpoint.
This is because it makes financial sense for PayTM as a service provider to develop and use its own proprietary albeit open-source, to promote a robust bitcoin server starting paytm community cryptocurrency for two reasons: The customer need never know that PayCoin is involved in the transaction, in a manner similar to the implementation of cryptocurrency in Abra.
PayTM would be insulated from the vagaries bitcoin server starting paytm the monetary system, at least insofar bitcoin server starting paytm its internal value chain is concerned. The migration away from fiat currency would mean freedom from regulatory suffocation, at least in the short term.
The transition would effectively render PayTM transactions as push payments, improving ease of use and efficiency of the process. PayTM would no longer bear the entire burden of transaction validation and record-keeping. Independent network nodes, through a blockchain implementation, could process the payments in return for a transaction fee to be split between themselves and PayTM.
However, such a solution would be through a permissioned ledger, in which PayTM retains the ability to carry out a KYC implementation through the system it currently uses to validate users on the marketplace. The fourth benefit is especially important to note, since it illustrates the perfect progress of the platform economy that bitcoin server starting paytm such as PayTM represent.
The rise of the PayTM and the Uber business model rests on aggregating market players on either side of supply and demand and ensuring that they bitcoin server starting paytm with each other. Thus, in status quo, these business models offer platforms, not goods or services. In future, even the provision of a platform would slowly be abdicated by these entities, with more and more of the platform provision function being delegated to other parties, such as peers on bitcoin server starting paytm network in our example.
However, the drastically reduced costs for PayTM will more than compensate for this shortfall in revenue. Further, other benefits such as increased transaction speed, reduced volatility risk, etc.
The embracement of the cryptoeconomy does not have to stop here — PayTM has all the resources required to diversify into other areas of the cryptoeconomy, such as the setting up of its own currency exchange. Since PayTM has large financial reserves, a robust KYC implementation for its customers and existing ties with banking partners, it is perfectly positioned to become bitcoin server starting paytm pre-eminent cryptocurrency exchange in the country if it chooses to enter the field.
PayTM could also acquire new relationships with merchant partners such as Uber to boost the utilisation of PayCoin — this would happen as soon as the valuation of PayCoin has been agreed upon between PayTM and its merchant partners. Thus, it could be possible in the near future for a PayTM customer to pay an Uber fare or an electricity bill or send money to a friend in a far off place instantly, through a push payment that is validated by other customers on the network and who get a portion of the transaction charge.
Such a change would benefit all stakeholders involved. Finally, with PayTM gearing up to launch its own payments banking service, this is an opportune moment to implement the PayCoin back-end, since this could make payments banking transactions and services incredibly smooth and hassle-free both internally and for the end customer.
Think of a washing machine that contacts suppliers and place orders its low on detergent. This can be brought to reality using IoT Internet bitcoin server starting paytm things.
The possibilities in this context are virtually countless, especially when the power of IoT is combined with that of other technologies, such as machine learning.
But some unforeseen obstacles will surface when billions of smart devices will try interacting among themselves and with their owners. All devices are identified, authenticated and connected through cloud servers that possess bitcoin server starting paytm processing and storage capacities.
Connection between devices will have to exclusively go through the internet, even if bitcoin server starting paytm happen to be a few feet apart.
All the communications that will have to be taken care of will increase those costs substantially. Even if we are able to overcome economical and engineering challenges, cloud servers will pose a problem always and are potential points of failure that can disrupt the entire network. Additionally, the diversified ownership of devices and their supporting cloud infrastructure makes machine-to-machine M2M communications tedious. Decentralization is a key solution to majority of problems listed above.
Implementing a standardized peer-to-peer communication model to process innumerable transactions between devices will definitely lead to cost reduction with respect to installing and maintaining large centralized data centres. Further, this will distribute computation and storage needs across the all the devices that form IoT networks.
In this case, failure in any single node in a network will not bring the entire network to a halting collapse. Establishing peer-to-peer communications might bitcoin server starting paytm into security issues. IoT security is far beyond than protecting sensitive data only.
A solution will have to check privacy and security in vast IoT networks and bring up validation procedures to prevent spoofing and theft.
This technology will allow creation of a non-centralized digital ledger of transactions that is shared among the nodes of a network.
Participants will be able to record transactions post registrations with blockchains. Transactions are verified and confirmed by other nodes participating in the network, thus omitting the requirement for a controlling authority. The ledger is tamper-proof and cannot be manipulated by anybody because it is not centralized. The concept can straight-a-way be applied to IoT networks to console the issue of scale, allowing infinite devices to share the same network without requiring additional resources.
Blockchain also holds good for the issue of conflict of authority between different vendors by providing a standard where everyone has equal stakes and benefits. The amalgamation of IoT and blockchain has already gained a position for itself, and is being endorsed and supported by both startups and tech giants.
Filament, another startup, is investing in IoT and blockchain with a focus on industrial applications such bitcoin server starting paytm agriculture, manufacturing and oil and gas. The firm already uses blockchain technology to identify and authenticate devices and also to charge for network and data services through bitcoin.
The system aids the process in which a solar bitcoin server starting paytm connects to a data logger, tracks the amount of solar energy produced, securely delivers that data to a node and records it on a distributed ledger that is synced across a broader global network of nodes. The application of blockchain to IoT also has flaws and bitcoin server starting paytm, and a few of them are necessary to overcome.
Some of these issues will slow down the extension of blockchain to IoT. Processing power and energy consumption needs attention as well. Encryption and verification of blockchain transactions are computer- intensive operations and require considerable horsepower to carry out, which is missing in many IoT devices.
Storage has a similar problem, as ledgers start to grow in size and need to be redundantly stored in network nodes. Blockchain is being perceived in India as a game changer that, if used to its full potential, can offer an innocuous, quick and economical way for transactions. Though it is at a very nascent stage and is yet to mature into a mainstream application, the technology is receiving encouraging reviews from market players in the country. The recent formal acknowledgement of blockchain technology by RBI has created a stir in the right direction in India.
In addition, RBI has also set-up a committee to understand the possibility of using blockchain technology and to determine appropriate regulatory policies. Globally, banks are moving from their traditional conservative mindsets, to bitcoin server starting paytm their strategies and better collaborate with fintech players in the payments space.
They have realized that failure to do so might leave them with a risk of being swayed away by nimble competitors. To achieve bitcoin server starting paytm, banks are collaborating with fintech through a number of ways such as venture capital investments, incubator programmes, innovation labs, strategic partnerships and accelerator programmes. A major breakthrough in payments transformation has been due to the support of regulators in laying down the foundation for technology companies and non-payment providers in innovating momentously in this field.
Undoubtedly retail and consumer payments are leading the way in adoption of innovative payments capabilities. This has been aided by the growth in e-commerce and the bitcoin server starting paytm penetration of mobiles.
The following graph shows some of the mobile payment revenue numbers globally. Adoption of payment hubs - Financial institutions are aggressively looking at investing in harmonising their payments infrastructure bitcoin server starting paytm moving to payment hubs.
These hubs are expected to allow the processing of any form of payments irrespective of the origination channel. Real Time payments — This is revolutionising the retail funds transfer by providing electronic cash to anyone in the span of a few minutes. Peer to Peer money transfers has been an area which has witnessed high growth and attention in the last few years.
The framework of digital payments provides a seamless customer experience across channels leading to better transaction experience. Over the past few years fintech providers have been really instrumental in paving the way for adoption of next generation payments in India. This has been enabled by the rising adoption of smartphones specifically in rural areas. Thus, resulting in a substantial jump in the growth of mobile payments in India. Furthermore, start-ups are coming up with innovative technologies to provide a smooth experience across channels such as, Paynimo payment platform, which is bitcoin server starting paytm of transacting across platform, channels and devices allowing merchants to transact through smartphones.
Many start-ups have entered the space to simplify mobile money transfer, such as Chillr application, which provides bitcoin server starting paytm money transfer without using bank account details. These digital wallets are integrated with social media features.
Similarly, few banks are going for payment solutions enabling money transfer, P2P transfer, etc. Even the Indian government is keen on adapting to the Cashless Bharat vision and bitcoin server starting paytm taken noteworthy steps to achieve the goal:.
It enables customers to transact through an app linked with their bank accounts. The vision behind this as shared by RBI was to migrate India towards a less cash and more digital society.
BBPS is an bitcoin server starting paytm bill payment system which would offer interoperable bill payment service to customers online as well as through a network of agents on the ground. Decentralizing IoT networks Decentralization is a key solution to majority of problems listed above.
This allows M2M communications. Concrete uses of blockchain in IoT The amalgamation of IoT and blockchain has already gained a position for itself, and is being endorsed and supported by both startups and tech giants. Caveats and challenges The application of blockchain to IoT also has flaws and shortcomings, and a few of them are necessary to overcome. Innovative digital technologies disrupting the traditional payments value chain Globally, banks are moving from their traditional conservative mindsets, to align their strategies and better collaborate with fintech players in the payments space.
Some of the key trends in digital payments have been around: Even the Indian government is keen on adapting to the Cashless Bharat vision and has taken noteworthy steps to achieve the goal:
