Ramazan Eles 
In a recently published report, Binance, the cryptocurrency exchange, spotlighted an altcoin network as a potential competitor to established payment giants like Visa and Mastercard.
This latest research from Binance suggests that blockchain technology has the potential to revolutionize global payment systems, offering a more modern and efficient alternative to the fragmented banking infrastructure currently in use.
According to the report, while payments made through traditional methods like Visa or Mastercard may appear instant to consumers, the actual transfer of funds between banks can take up to a day. This delay becomes even more pronounced in cross-border transactions, where coordination between banks in different countries is required.
In contrast, blockchain technology offers a significant improvement in transaction speed. The report highlights that blockchain transactions can be completed in under an hour, a stark difference from the delays often associated with conventional banking methods. Additionally, the cost of blockchain transactions is relatively low, making it a more economical solution for global money transfers.
Data from the World Bank reveals that the average cost of sending cross-border remittances in the first quarter of this year was 6.35%. Blockchain networks like Solana have the potential to drastically reduce these costs, allowing transactions to be processed for a fraction of a cent. The report also points to a Visa pilot project that utilizes blockchain for payment settlements, showcasing the technology’s potential.
Despite these benefits, the report acknowledges the existing challenges, particularly in terms of scalability. For example, while Visa can process over 65,000 transactions per second, blockchain networks like Solana currently handle just over 1,000 transactions per second. However, the report remains optimistic, suggesting that as regulatory frameworks evolve, technology advances, and businesses become more comfortable with blockchain, there could be a growing shift towards using on-chain stablecoins in place of traditional fiat banking systems.
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