At all levels, trade has been a product of trust between parties. To ensure that trust and security exist between transacting partners, governments and financial institutions have commendably taken the bull by the horn, becoming the grease the economic wheel turns.
Whilst playing a pivotal role in keeping trust between parties for centuries, these traditional financial institutions, unfortunately, have become all too powerful and conservative when it comes to adopting new policies and agendas that will provide additional safety and security to users while offering them fast and cheap services.
Presently, the number of paperwork individuals are required to fill when transacting with retailers or suppliers from other countries, has made the entire process slow and frustrating to the average entrepreneur. For example, before each transaction is verified, different intermediaries would have to approve it, slowing the processing time and increasing the overall cost.
Is there a solution to this major sticking point?
Yes, blockchain technology and cryptocurrencies have been designed to enable the easy transfer of assets securely.
Blockchain as an Ideal Security Tool
Although coming to the limelight in 2009 after the launch of the premier cryptocurrency, Bitcoin, blockchain is an immutable, permanent, secure, and transparent technology.
Through smart contracts which are powered by blockchain, users can transfer assets in a decentralized and trustless system. Transacting parties will simply need to lock up assets in the smart contract which would be issued once the intended service or product has been received. This eliminates the need for third parties, thereby reducing cost and increasing speed.
Being immutable, all information stored on a blockchain cannot be altered, ensuring that no party can manipulate predetermined requirements in his/her favor. As an ideal security tool, blockchain reduces uncertainty between individuals in a financial transaction.
Unlike traditional financial institutions that will require users to pass through different layers of know-your-customer to initiate international transactions, blockchain enables ultra-fast access at a way cheaper rate to anywhere in the world.
Worth trillions of dollars at the moment, the crypto market is replete with various projects seeking to solve a problem or two. One of such projects is the ESP Project.
Security-centric, this blockchain-based project has been duly audited by one of the leading blockchain security companies, CertiK. Built with an emphasis on education and solar, the team behind this project attempt to provide security to the transfer market.
Additionally, this project was designed to make a remarkable impact on the education, solar, and payment sectors. To do this, they have launched the E$P token. Through this ERC-20 compliant token, the ESP Project team will seek to tokenize payments, ensuring that users do not have to rely on traditional institutions. One sector this project tilts towards is education.
Through its Education Ecosystem platform, this project will offer teachers and parents an avenue to interact and a fine platform for the latter to make payments for all school-related fees. International students, according to the team, will find this platform helpful as well. Rather than walk around with cash, students can make all types of payments digitally, through the E$P token. Rewarding teachers, the Education Ecosystem platform will enable them to earn each time their content is viewed.
This project like a few of the others actively trading in the crypto market is keen on solving a few existing problems. The immense potential of blockchain technology if integrated into the financial industry will revamp it, resulting in faster and cheaper transactions, unlimited access to capital, and a decentralized network free of paperwork and other forms of know-your-customer procedures.