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Module 2 Cross-Border Transaction

Blockchain cross-border payments utilize blockchain technology to facilitate transactions between parties in different countries, aiming to eliminate intermediaries, reduce costs, and enhance speed and security. These payments leverage smart contracts for automation and provide advantages such as faster settlements, lower fees, increased transparency, and global reach. The decentralized nature of blockchain ensures a secure and tamper-proof record of transactions, enhancing trust and reducing fraud risk.

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madepallimukesh.sai2021
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10 views6 pages

Module 2 Cross-Border Transaction

Blockchain cross-border payments utilize blockchain technology to facilitate transactions between parties in different countries, aiming to eliminate intermediaries, reduce costs, and enhance speed and security. These payments leverage smart contracts for automation and provide advantages such as faster settlements, lower fees, increased transparency, and global reach. The decentralized nature of blockchain ensures a secure and tamper-proof record of transactions, enhancing trust and reducing fraud risk.

Uploaded by

madepallimukesh.sai2021
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Blockchain Cross-Border

Transaction
Blockchain Cross-Border Payments
• Blockchain cross-border payments are transactions between parties
from various countries that are facilitated by blockchain technology.
• blockchain-based cross-border payments seek to eliminate
intermediaries, reduce transaction costs, and increase transaction
speed and security.
• blockchain-based cross-border payments facilitate faster payment
solutions for business-to-business and person-to-person blockchain
transactions
Cross-Border Payments Working
• Using the blockchain’s decentralized and secure nature, blockchain-
based cross-border payments facilitate transactions between
participants in different countries using different currencies
• Smart contracts, on the other hand, autonomously enforce
blockchain cross-border payment transactions based on
predetermined rules.
Advantages of Blockchain-Operated Cross-
Border Payments
• Faster Settlements: Blockchain technology enables near-instant
cross-border payments, eliminating the need for intermediaries such
as banks or payment processors.
• payments can be processed within minutes

• Lower Fees: The cost of making these payments can be significant,


with traditional payment methods often charging high fees.
• the fees for these payments can be significantly reduced.
• Increased Transparency: Blockchain technology provides a
transparent and tamper-proof record of all transactions.
• both the sender and the recipient can track the progress of the
payment and verify its authenticity
• This transparency helps to reduce the risk of fraud and increases trust
in the payment process.
• Global Reach: Blockchain technology is a decentralized system
• it enables payments to be made globally without the need for
complex foreign exchange transactions.
• Cross-border blockchain payments are based on the security-
enhancing principles of cryptography, distributed ledger technology,
and decentralization.
• Every network participant has a copy of the distributed ledger, and
each transaction is validated by a consensus mechanism before being
added to the distributed ledger.

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