Blockchain technology has been highly praised for its characteristics such as immutability, synchronization across the entire network, transparency, and low cost. With the development of the times, blockchain technology continues to make breakthroughs. More and more financial institutions in countries around the world are considering using blockchain technology to improve efficiency and reduce costs. From a global perspective, in the future, banks can no longer use third parties, but through blockchain technology to achieve peer-to-peer payments.
According to World Bank data, the size of the global cross-border payment market (international remittance) continues to grow at an annual rate of about 5%, reaching US $ 601 billion in 2017. The profit of cross-border payment business in various regions has maintained a growth trend, especially in the Asian region. China surpassed Brazil and became the third largest global cross-border payment market after the United States and the Eurozone.
Cross-border market: the next blue ocean
With the rapid development of cross-border e-commerce in recent years, more and more high-quality overseas commodities Zheng are accelerating to enter the Chinese market, and the cross-border market will also become the next trillion-level “blue ocean”.
Difficulties in cross-border payment
Since traditional cross-border payment methods involve many intermediate links, many difficulties will be encountered in the cross-border payment link, such as: lack of foreign trade channels and trust issues, large mobile cross-border e-commerce, cross-border payment Frequent fraud incidents, underdeveloped traditional financial payment systems, high fees and long transfer cycles, rigid demands for online trade, increased transaction frequency, and order fragmentation have greatly affected the effectiveness of payment.
EGM chain smart payment new ecology
EGM chain deeply integrates “AR + blockchain + smart payment” to create a new smart payment ecology, which can perfectly solve the problem of difficult cross-border payment.
(EGM chain) is a cross-border payment system based on the blockchain smart contract payment protocol. It was developed by Export General Manifest Technology R & D Co., Ltd. through the establishment of a distributed P2P clearing network to allow servers worldwide to perform peer-to-peer finance Transactions, decentralized management, no intermediaries, nor any complicated exchange procedures, providing extremely strong liquidity for cross-border payments. The core of (EGM chain) is a shared public database. The database records the user’s account and balance. Computers on the network can modify the general ledger and transaction settlement through a consensus mechanism. Anyone can read these general ledger and also read. Get all transaction records in the (EGM chain) network.
EGM + smart contract payment solves the difficulty of payment
(EGM chain) The smart contract technology used by the fusion blockchain is a piece of code deployed in a distributed ledger. When the two sides of the transaction reach a consensus on the execution of the contractual agreement, it can automatically trigger the signing and payment, etc. Record related circulation information in the blockchain. The realization of value transactions through (EGM chain) blockchain + smart contract payment technology not only saves time and money, but also improves the efficiency of transactions.
Speed up the transfer of cross-border payments
Cross-border payment is one of the most lucrative businesses of banks. According to data from Ajsen, cross-border payments processed between banks are between US $ 25 and US $ 30 trillion each year, and transaction volume reaches between US $ 10 and US $ 15 billion.
The combination of blockchain and cross-border payment for financial institutions can improve the cost structure, increase profitability, achieve 24/7 payment, instant payment, and speed up the transaction progress while saving a lot of handling fees. The world’s first blockchain-based cross-border remittance in the traditional payment model takes 2 to 6 working days, but using EGM technology, the transaction is completed within 6 seconds, reducing capital risk.
Among various scenarios of using blockchain for cross-border payment, cross-border payment among enterprises is the most popular.
Advantages of blockchain + EGM cross-border payment integration
1. The payment fee is lower, it does not belong to anyone, and the payment cost is lower. Merchants who receive payments through EGM chain can save a lot of intermediate fees.
2. The payment speed is faster, the transaction is carried out automatically, the funds are instantly received, and the payment can be completed within a few seconds.
3. The foreign exchange is simpler, and the agreement allows foreign exchange to be free of additional costs, making international business activities simpler and more profitable.
4. The availability of financial services is higher. EGM chain can be used to connect to the Internet. The financial services provided by EGM chain can cover billions of people in regions with insufficient banks.
5. Financial services are more interconnected. By creating a shared currency agreement, transactions between independent companies are easier, reducing resistance in the financial system and enhancing the efficiency of the system.
On the whole, blockchain + cross-border payment has many unparalleled advantages of other technologies. The gradual implementation of blockchain + cross-border payment has improved efficiency and reduced costs, and provided more possibilities for third-party payment in the field of cross-border e-commerce export trade.
EGM “builds an alliance chain based on the blockchain based on multiple cross-border payment demand parties (the blockchain public chain is freely open to all network users, and the alliance chain is open to some authorized users). The peer-to-peer currency transmission is carried out using the virtual currency agreed by the alliance chain as the medium, eliminating any third-party intermediary links, and the transaction is settled-no third party is required to be a transaction to adjust and reconcile the account changes of both parties, greatly reducing At the same time the cost can be paid very quickly. ”
The application prospect of blockchain technology in the financial field is widely optimistic. Taking advantage of the “distributed bookkeeping” feature of blockchain technology, the fund clearing information arrives synchronously on the chain, is shared by all, and is updated in real time. In the field of cross-border payment clearing The practicability and adaptability are both the best, known as “the most perfect cross-border payment solution.” The new payment method complements the traditional payment channels, avoiding the legality and regulatory issues faced by blockchain electronic money.
Therefore, blockchain + payment, especially (EGM) cross-border payment will definitely create more possibilities in the future.