Blockchain banking is ideal for modern payment methods

Blockchain – lean, fast, secure

A well-functioning distributed ledger technology (DLT) offers great potential and can generate immense benefits for all participants. This way, payments networks such as SWIFT or even correspondent banking relationships can be made more secure and efficient. At the same time, the technology enables modern payment methods such as pay per use or the use of automated protocols such as smart contract.

Blockchain technology is part of the IT architecture of the future

Processes in blockchain banking
**Blockchain gets by without cash**
Electronic wallets and smart contracts – in conjunction with a digital currency – can replace classic cash payments at the checkout or card transactions on the web.

The payment behaviour of consumers has changed fundamentally. Whereas until a few years ago cash was the predominant method of payment and hardly any other method was used apart from card payments, today it is almost a matter of course for consumers to take out their smartphones and use them to pay for their goods.

However, the new acceptance of cashless means of payment also brings with it growing consumer demands. End customers will not put up with the current costs and transit times for remittance and other cross-border payments for much longer in the face of a thoroughly digitalised world. The same applies to manual processes such as entering an IBAN.

Blockchain technology opens up a wide range of opportunities for the financial industry to increase its speed of innovation and make payment transactions even more efficient and secure. Distributed ledger technology (DLT) is a decentrally distributed database or register that stores data in a network in an unalterable manner. In payments, for example, cryptocurrency transactions can be traced. Within these systems, transactions between users become transparent. The data is strung together like a chain in blocks and documented transparently for all. Thus, all processes are traceable and trustworthy without the need for a central instance.

As a shared, non-modifiable journal for the history of transactions, blockchain technology will play an important role in the future. It supports the mapping of new products and business transactions and ensures more transparency when concluding contracts, digital values or payments.

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Mario Lang

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Sebastian Litschke

Director

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Whitepaper The Future of Payments

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