Is Blockchain Technology the Answer to Digital Payment Security?

As a business owner or operator, you are probably concerned about the safety and integrity of online payments. Although you use a highly-rated payment gateway, you still worry about the integrity of payments being processed. You have thought about all the parties involved in a single transaction and with money changing hands, digitally, so many times, it would be easy for a company’s or customer’s financial information to be easily breached at any point in the transaction. You have heard that blockchain technology, such as that which underpins cryptocurrency like Bitcoin is, ultimately, far, far safer. Is this true and is blockchain technology the answer to digital payment security? Let’s look at that for a moment.

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A Look at the Parties Involved in an Online Payment

Perhaps this is oversimplified, but you will get the idea of how insecure some payment gateways really are. The chain from buyer to seller looks something like this. The buyer hits the “PAY” button and that information is sent from their local computer to the seller. The seller’s computer then transmits the information to the payment gateway and from there, the gateway contacts the customer’s financial institution. Once authorized, the information is sent back to the gateway, which then sends it back to the seller and a confirmation is sent to the buyer. The point here is that there is a middleman to go through and at any time along that chain, information can be breached.

Peer to Peer Apps Minus the Middle Man

Above, you saw that all information is sent as a single file and this is why it is so easily hacked. At any point in the process, all that customer or seller information is contained in a single file as it flies through cyberspace. In blockchain transactions, each file is broken down into blocks, which are sent out over the Net through bits of information, never going to the same server or storage site a second time. Those file fragments may go to France before heading back to a US financial institution, and on the way back, bits of files are no longer the same and they are sent back through other servers/sites. But, what is really great about blockchain financial transactions is that with the aid of open blockchain apps, no middleman is needed! The request for approval goes from point A to point B without the need for a payment gateway. Just the elimination of this stop along the route provides fewer breach points to worry about!

Many people are predicting that the future of online payment processing lies in blockchain technologies, particularly cryptocurrencies. However, for many developers, and consumers, it is currently hard to envisage this because of the technical challenges of implementing the necessary payment infrastructure. OPEN platform could be revolutionary in this regard. OPEN removes the need for advanced technical expertise on the part of the developer, meaning that even thosewith no experience of cryptocurrency payments will be able to implement the necessary infrastructure into their application’s backend. Many software developers have been hoping that a platform like OPEN will come along, and finally make this revolutionary technology accessible to all.

A Final Word of Hope

Putting this all together, it’s easy to see that blockchain technology is the hope of the future of the Internet, especially in terms of digital payments. While it is forecast that blockchain file transference will make its way through other applications as well, for the time being, IT professionals are proclaiming blockchain technology the greatest development in financial security since the invention of Brinks armored trucks.

If you are looking for a safer way to make or take payments online, you probably won’t find one. So, yes, blockchain technology is the answer to secure online financial transactions.