The invention of internet has transformed the world into a global village. Any piece of information moves across the world in no time. Since the beginning of 21st century, a lot of developments are being carried out in the fields of computer and technology. Blockchain technology is the latest form of technology that is revolutionizing the businesses across the world. Due to positive effects of this technology, the world is witnessing digitalization in almost all the fields of life. Especially, the digitalization of money has brought about an unprecedented change on this planet. This means that financial information is transferred across the globe within seconds. A lot of digital platforms have been introduced that are making the cross border transactions safer, easier, and faster than these were in the past.
What is the Internet of Value?
The ‘Internet of Value’ is the type of facility through which cross border transactions take place rapidly in the same way as words, images, and videos are transferred. Earlier, digital transactions across the globe took couple of weeks to settle. Even, it took almost 3-5 days to settle in the most advanced countries like America and England. Here, it is also important to mention that the transactions in those days had an error percentage of 5 and cost $ 42. Nowadays, with the help of digital platforms like Ripple, these transactions take place in just 3 seconds without much cost and almost no chance of error.
In other words, we can say that ‘Internet of Value’ helps to exchange any asset that has value for someone. This means that it helps to exchange stocks, votes, securities, music, scientific discoveries, and intellectual property. Blockchain technology is behind the exchange of all these assets. This is because it has eliminated the role of third parties or intermediaries to carry out these exchanges. With the help of blockchain technology, all the assets are exchanged between the sender and the receiver directly. Both the sender and the receiver know the reality of the transaction and the status of it through the process.
Ripple is at the top in the list of platforms that are processing cross border transactions within seconds. The platform completes the transactions securely, reliably, and instantly without the need for third party. This has minimized the costs. The experts are hopeful that in near future, the value will exchange across the world just like the information reaches. The latest technology being employed by Ripple is proving a lot helpful in developing many other apps to facilitate different fields of life including healthcare. For example, Nasdaq is one of the apps developed with the help of blockchain technology. This app is being used by the firms wide across the world to manage their shares.
Top Benefits of Internet of Value
With every passing day, cryptocurrencies are gaining popularity across the globe. A lot of people seem interested in these currencies to maximize their assets. Internet of value is proving a lot beneficial for us because it helps the money to travel like information across the world thereby decreasing the cost and time of transactions. Keeping all these things in mind, we can highlight the top benefits of ‘Internet of Value’.
1-Minimized the Transaction Time
The very first and the most important benefit of the ‘Internet of Value’ is that it has helped us minimize the transaction time in this digital world. The global transactions that took two weeks for completion are now processed in matter of seconds. Here, once again Ripple is the fastest growing network as it has reduced the transaction time to only three seconds. Therefore, a lot of businesses across the world are entering into partnership with Ripple to process cross border transactions.
Cost effectiveness is the second largest benefit of the ‘Internet of Value’. By eliminating the role of third party or intermediary, it has minimized the transactions’ costs for cross border transactions. This cost effectiveness has attracted many banks, financial institutions, and money transfer firms to adopt blockchain technology to minimize the transaction costs without chances of any error.
The ‘Internet of Value’ has also brought about a great security in transferring money across the globe. Only the sender and the receiver know the value of transaction and the status of it. The sender and receiver have their own private keys to keep these transactions secure. Moreover, blockchain technology also uses P2P network that eliminates the chances of any information leakage.
In conclusion, we can easily say that ‘Internet of Value’ is proving a lot beneficial for our everyday usage. A lot of different transactions take place on daily basis. Almost, all these transactions are recorded on decentralized ledger that is secured with the help of specific keys. It is also proving a lot beneficial for developing various blockchain based applications to be used in various fields across the world.