Revolutionizing International Payments: The Rise of Blockchain Rails

Sep 22, 2023

Revolutionizing International Payments: The Rise of Blockchain Rails

Sep 22, 2023

Revolutionizing International Payments: The Rise of Blockchain Rails


The innovation brought by blockchain technology, particularly in the realm of payments and transfers, is revolutionizing traditional financial systems. Once anyone experiences the efficiency and ease of blockchain rails, reverting to traditional methods seems almost unimaginable.



Let's delve into a comparative analysis of conventional ACH or Wire transfers and the modern P2P stablecoin transfers, illuminating the stark contrasts in their processes. The ACH or Wire transfer is notably protracted, necessitating logging into bank accounts, adding new payees by inputting various details such as routing numbers, account numbers, SWIFT codes, and recipient's names and addresses. After adding the recipient as a payee, there is often a waiting period before you can log in again to select the payee, enter the transfer amount, and finally confirm the payment. Even after these exhaustive steps, the payment processing is limited to working hours from Monday to Friday, with settlements sometimes taking up to three days.



In sharp contrast, P2P stablecoin transfers simplify this elaborate process immensely. It involves logging into your wallet app, clicking transfer, adding the recipient's wallet address or ENS, entering the transfer amount, and confirming the payment. The beauty of this process is its immediate settlement, breaking the barriers of time, geography, and availability, allowing transactions to be processed any time and any day.



Examining the transfer costs unveils more advantages of blockchain rails. According to the World Bank, the global average remittance cost stands at a staggering 6.25%. When juxtaposed with the minimal gas fees in blockchain transactions, the disparities become more evident. Even amidst congested blockspaces, simple transfers experience negligible gas fees compared to complex transactions. At the point of this writing, on September 22, the most complex NFT transaction on Blur recorded the highest gas fee at $16, a minuscule amount compared to traditional transfer costs.



Evidently, P2P stablecoin payments significantly outshine their traditional counterparts regarding the number of steps, processing time, settlement time, and incurred fees. Blockchain technology, with its unparalleled efficiency and simplified processes, is poised to inevitably redefine our global financial infrastructure. This transition underscores the growing need to embrace modern financial solutions that align with the rapidly evolving digital landscape, marking a pivotal step towards realizing a more inclusive and streamlined global economic ecosystem.

Revolutionizing International Payments: The Rise of Blockchain Rails


The innovation brought by blockchain technology, particularly in the realm of payments and transfers, is revolutionizing traditional financial systems. Once anyone experiences the efficiency and ease of blockchain rails, reverting to traditional methods seems almost unimaginable.



Let's delve into a comparative analysis of conventional ACH or Wire transfers and the modern P2P stablecoin transfers, illuminating the stark contrasts in their processes. The ACH or Wire transfer is notably protracted, necessitating logging into bank accounts, adding new payees by inputting various details such as routing numbers, account numbers, SWIFT codes, and recipient's names and addresses. After adding the recipient as a payee, there is often a waiting period before you can log in again to select the payee, enter the transfer amount, and finally confirm the payment. Even after these exhaustive steps, the payment processing is limited to working hours from Monday to Friday, with settlements sometimes taking up to three days.



In sharp contrast, P2P stablecoin transfers simplify this elaborate process immensely. It involves logging into your wallet app, clicking transfer, adding the recipient's wallet address or ENS, entering the transfer amount, and confirming the payment. The beauty of this process is its immediate settlement, breaking the barriers of time, geography, and availability, allowing transactions to be processed any time and any day.



Examining the transfer costs unveils more advantages of blockchain rails. According to the World Bank, the global average remittance cost stands at a staggering 6.25%. When juxtaposed with the minimal gas fees in blockchain transactions, the disparities become more evident. Even amidst congested blockspaces, simple transfers experience negligible gas fees compared to complex transactions. At the point of this writing, on September 22, the most complex NFT transaction on Blur recorded the highest gas fee at $16, a minuscule amount compared to traditional transfer costs.



Evidently, P2P stablecoin payments significantly outshine their traditional counterparts regarding the number of steps, processing time, settlement time, and incurred fees. Blockchain technology, with its unparalleled efficiency and simplified processes, is poised to inevitably redefine our global financial infrastructure. This transition underscores the growing need to embrace modern financial solutions that align with the rapidly evolving digital landscape, marking a pivotal step towards realizing a more inclusive and streamlined global economic ecosystem.

Other blog posts

Loch, Inc. © 2023

2261 Market Street,

San Francisco, CA 94114

The content made available on this web page and our mobile applications ("Platform") is for informational purposes only. You should not construe any such information or other material as financial advice in any way. All information provided on the Platform is provided on an as is and available basis, based on the data provided by the end user on the Platform. Nothing contained on our Platform constitutes a solicitation, recommendation, endorsement, or offer by us or any third-party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All content on this Platform is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Platform constitutes financial advice, nor does any information on the Platform constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the platform before making any decisions based on such information. In exchange for using the Platform, you agree not to hold us, our affiliates, or any third-party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the Platform.

Loch, Inc. © 2023

The content made available on this web page and our mobile applications ("Platform") is for informational purposes only. You should not construe any such information or other material as financial advice in any way. All information provided on the Platform is provided on an as is and available basis, based on the data provided by the end user on the Platform. Nothing contained on our Platform constitutes a solicitation, recommendation, endorsement, or offer by us or any third-party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All content on this Platform is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Platform constitutes financial advice, nor does any information on the Platform constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the platform before making any decisions based on such information. In exchange for using the Platform, you agree not to hold us, our affiliates, or any third-party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the Platform.

2261 Market Street,

San Francisco, CA 94114

Loch, Inc. © 2023

The content made available on this web page and our mobile applications ("Platform") is for informational purposes only. You should not construe any such information or other material as financial advice in any way. All information provided on the Platform is provided on an as is and available basis, based on the data provided by the end user on the Platform. Nothing contained on our Platform constitutes a solicitation, recommendation, endorsement, or offer by us or any third-party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All content on this Platform is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Platform constitutes financial advice, nor does any information on the Platform constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the platform before making any decisions based on such information. In exchange for using the Platform, you agree not to hold us, our affiliates, or any third-party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the Platform.

2261 Market Street,

San Francisco, CA 94114